The real estate industry in Pakistan has been facing a bad phase for the last two to three years. However, the few months of 2024 to the first quarter of 2025 have been a good period for the real estate industry of Pakistan. Factors such as reduced interest rates, relaxation in property taxes, favorable government policies, and increased remittances have positively impacted the country’s real estate sector. Let’s discuss how these factors are helping to shape the Future of Real Estate in Pakistan in 2025.
Outlook of Pakistan’s Real Estate in 2025
In 2024, the real estate market showed moderate progress. Due to unexpected taxation and unfavorable government policies, the plot and file sector suffered badly, while the construction and rental sectors showed upward performance.
Pakistan has witnessed better economic trends in 2024. For example, the stock market crossed 100,000 points. Similarly, the interest rate dropped from 22% to nearly 12%.
These indicators positively impacted Pakistan’s real estate sector by attracting local and overseas Pakistani investment in the industry. For instance, Bahria Town Peshawar was launched in 2024. All these factors created a better environment for the real estate industry in 2025.
How Real Estate is Going in 2025?
Several factors are positively impacting the real estate industry in the country. These factors are changing the real estate industry in the following ways:
1. Significant Decrease in Interest Rate
The interest rate has decreased in the past year. For example, it was 22% in 2024 and has now reduced to 12%. It will be a great sign of economic recovery in the country.
People now prefer to invest their money in the real estate market instead of keeping it in banks for a minimal interest rate. It will boost the real estate sector in the remaining 07 months of 2025.
2. Historic Increase of Bank Deposits
Pakistan has witnessed a historic increase in its bank deposits of 32.32 trillion in April 2025. This milestone is due to increased remittances from overseas Pakistanis and the betterment of digital banking in Pakistan. It shows the people’s interest in the economy.
These deposits will pave the way for enhanced investments in the real estate sector and the recovery of the property market.
3. Increased Demand for Legitimate Projects
Legitimate residential and commercial projects are in high demand compared to the plot file sale. Legitimate HiRise projects such as Umar Mall and Apartments, Umar Reveria Bahria Town, and Umar District Tower Bahria Town have won the public interest.
Therefore, these commercial projects and established housing societies, such as Blue World City, Bahria Town, and Faisal Hills, will be in high demand in 2025 and onward.
4. Real Estate-Friendly Government Policies
The Punjab Chief Minister Maryam Nawaz Sharif has launched the Apni Zameen Apna Ghar initiative. Under this program, deserving citizens will get free residential plots to construct their houses. These kinds of infrastructure will boost the real estate sector in the country. Therefore, the future of real estate is bright in 2025.
5. Relaxation in Taxes
The Federal Government of Pakistan has removed the Federal Excise Duty (FED) for property buyers in the country. Therefore, these tax relaxations are good indicators for the real estate market.
Conclusion
The demand for 10 million houses and a 12% annual growth rate is making the future of real estate in Pakistan bright in 2025.
Additionally, government initiatives such as the launch of the Apni Zameen Apna Ghar scheme and the removal of Federal Excise Duty (FED) are paving the way for the industry’s recovery.
Choosing the winning property is crucial for the maximum leverage of the real estate market recovery. Therefore, invest with an established real estate organization like Property Naama Group. Best of Luck!
Get in Touch to Invest in Pakistani Real Estate
If you want to invest in Pakistan or the UAE, contact our marketing team by reaching out to us via :
Our Email address: Info@propertynaama.com
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Disclaimer:
Please note that the information provided in this blog post is for educational and awareness purposes only and should not be considered professional advice.
Property Naama Group is not responsible for any investment decisions by our clients or investors based on the information provided.
