Pakistan’s housing deficit is estimated at around 10 million units, which means that more than a third of the 32 million households in the country are not provided with adequate housing, according to the SBP. Worse, the housing backlog is increasing by 200,000 units every year, based on estimates.

There are multiple reasons for Pakistan’s housing woes. These include: non-availability of a common record of land and entitlement; stringent regulations for site development; limited financing has priced out lower-to-middle income segments; and reluctance of banks to expand their mortgage portfolio due to weak contract enforcement and uncertainty of title deeds.

According to the SBP, the affordable house price to income ratio in Pakistan is 20:1, far worse than the global average of 5:1. As a result, more than half of the country’s urban population lives in slums and squatter settlements

Demand for high-rise apartments is rapidly growing

Apartment living is rapidly becoming popular in Pakistan, as cities become increasingly congested and land prices continue to surge, according to a news released by Pakistan Researchers.

In the past five years, the demand for apartments increased by nearly 30%, fuelling the surge in the number of newly constructed high-rise luxury apartments in Karachi, Lahore and Islamabad.

Karachi’s posh neighborhoods, such as Nazimabad, Federal B. Area, PECHS, Clifton, and several phases of DHA, are gradually shifting to luxury condominiums and apartments from the traditional lavish mansions. Likewise in Lahore, fully serviced apartment projects are sprawling in the city outskirts such as in the Raiwind and Multan Roads and in residential hotspots such as Gulberg and the Canal Road. In Islamabad, an increasing number of apartment projects can be seen in Jinnah Avenue, Bahria Enclave and around the new Islamabad Airport, among others.

“Since the metropolitan trio comprising Karachi, Lahore and Islamabad is reaching saturation levels in terms of land availability for new projects, an increasing number of builders and developers have shifted their focus on creating vertical urban clusters in the city centres, and sprawling gated communities at the outskirts,” said Akhlaq Ahmed of Manhill Advertising.

Some of the most popular luxury condominium developments that were introduced recently include: Creek Vista Apartments (Phase VIII, DHA, Karachi), Saima Presidency (Malir Cantonment, Karachi), Al-Khaleej Towers (Federal B. Area, Karachi), Springs Apartment Homes (Canal Bank, Lahore), and Veranda Residence (Sector E-11, Islamabad). Most of these condos have a covered area between 2,400 and 3,000 square feet, with prices ranging from PKR 38 million (US$267,850) to PKR 65 million (US$458,160).

Posted By: Administrator Posted Date: 2022-01-03