ABSTRACT

This chapter focuses on the characteristics of, trends in and challenges of residential and commercial real estate markets in Pakistan. Buying dominates the housing market in Pakistan due to a residential rental market that is underdeveloped and a cultural preference for ownership. Karachi, Lahore and Islamabad have the most important commercial real estate markets in Pakistan. Real estate agents in Pakistan are commonly referred to as property/real estate dealers or advisers. Appraisers or valuers at the State Bank of Pakistan are responsible for determining the value of property in order to inform the Federal Board of Revenue. Developers in Pakistan face a number of challenges, which include the availability of financing and red tape at governmental agencies leading to lengthy approval processes and delays. While commercial and residential real estate markets in Pakistan have experienced tremendous growth, a number of challenges remain for real estate investors and developers.