Real estate is crucial for driving the country’s economy and financial growth. It provides employment, fulfills housing and commercial building needs, and supports infrastructural development. In this blog, I will share the role of Real Estate in the Economy of Pakistan, employment generation, and other sectors.
How does Real Estate impact the Economy of a Country?
The real estate sector impacts the economy of Pakistan in different ways. Here are some prominent ways to discuss:
A Stimulant for the Economy
Real estate is not just about buying and selling plots, homes, and commercial properties. Instead, it plays a pivotal role in the national economy through its ripple effects.
According to M.Ismail (Chairman, Property Naama Group), a single property investment can create employment in over 40 allied industries. This increased business activity improves the overall GDP of a country and increases buyers’ confidence.
Business Growth for Allied Industries
According to real estate experts, the growth in the real estate sector has a direct and indirect impact on allied industries. It affects these industries in the following ways:
Construction Industry
With growth in real estate, the demand for cement, steel, sand, and other construction materials increases.
Interior Design Work
The increased demand for housing results in a boosted supply of interior decor products. Similarly, it also improves the requirement for furniture and other accessories.
Financial Services
Boosted real estate growth also elevates demand for home financing services and insurance products.
Professional Services
The boasted economic growth also extended demand for professional services, such as architectural, engineering, legal, and other.
These are some examples of industries. In this way, numerous other industries also benefited from real estate growth and development.
Impact of the Real Estate Sector on Employment Generation
Real estate is a labor-intensive industry that provides millions of jobs. Commercial projects and developments create more employment in urban areas. According to the Economic Survey of Pakistan, the real estate sector employs around 8% of labor.
Additionally, the real estate sector indirectly employs several allied industries such as home decor, furniture, the electric industry, and others.
Role of Government Policies in Real Estate Growth
The Government of Pakistan has recognized the potential and contributions of real estate. Government policies such as Real Estate Investment Trusts (REITs), Property Tax Reforms, Waiver of Federal Excise Duty (FDI) for first-time property buyers, and other policies have positively attracted growth and development. These policies have attracted foreign and local investments and improved GDP.
Conclusion
The real estate sector is instrumental in driving economic growth, and the role of Real Estate in the economy of Pakistan is very crucial. Therefore, it creates several jobs directly and indirectly. For investors and stakeholders, this sector has unlimited opportunities to create wealth. Pakistan can improve GDP and secure economic prosperity through real estate-friendly policies.
Contact for Property Consultation
If you want to get any kind of property consultation to invest in Pakistan and the UAE, you can reach out to us :
Our Email address: Info@propertynaama.com
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