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• by Admin
• 22-Dec-2022 || 06:35 PM

Demand for residential properties started to grow in Pakistan in 2010. New housing developments came into the emergence and they have targeted the upper middle class of the country. To assist that further, the Government of Pakistan announced a reduction of interest rates on mortgage loans in 2012. Currently, the real estate sector is worth $300-$500 billion in Pakistan, and real estate outputs contribute almost 2% of the GDP.

Since housing developments are targeting the upper middle class, developers have been targeting the Urban Cities primarily but with the growing needfor urbanization, a lot of urban planning is required. So,let’s look at what has happened till now and what is happening at the moment. Bahria Town group has completely changed the dynamics of the real estate sector. They started to develop societies in urban cities and it was more of a concept of the city itself within a city. They have completed projects in Lahore, Rawalpindi, and Karachi. Following the bandwagon approach, many housing societies came into being in urban cities although with a much lower success rate as compared to Bahria Town yet successful.

With the growing needfor urbanization in the cities close to Urban cities, something needed to be done and it has been done through the introduction of housing societies in such cities with modern amenities. We are seeing the success of City Housing schemes in Gujranwala, Faisalabad, and Multan. This is not only contributing towards addressing the rising population and housing gaps in Pakistan but also proving to be an example of living standards which has increased the urge for better living standards in the population.

In a nutshell, urban cities have provided an alternativeto living for people but small cities have provided an alternative at a better cost and yet a better living standard. Urban cities have grown to an extent now and it was a need of an hour for small cities to do so to cater to the gap as a result of the increasing population. It was a timely intervention but has yet to prove its potential.