The Rise and Stall of Pakistan’s Real Estate Dream

For decades, Pakistan’s real estate sector stood as a symbol of security and stability. It was considered one of the most promising investment avenues, especially for overseas Pakistanis looking to protect their earnings from currency devaluation and inflation. Amid uncertain economic conditions, investing in land or property became a go-to strategy—offering not just financial growth, but peace of mind.

However, in recent years, this once-booming industry has encountered serious roadblocks. The combination of skyrocketing interest rates, inconsistent government policies, and global financial constraints has made property investment less attractive. Confidence has dipped, and investors are increasingly looking abroad for more stable options.

A Crisis of Confidence: How Policy and Interest Rates Played a Role

The downward shift in Pakistan’s property market didn’t happen overnight. One major trigger was the central bank’s decision to raise interest rates—at one point reaching as high as 22%. This made financing homes or land through bank loans nearly impossible for middle-class investors and even seasoned developers.

Though the recent drop in interest rates to 12% has brought some relief, another major challenge looms: Pakistan’s agreement with the IMF. As part of securing the next tranche of financial assistance, the government is under pressure to expand the tax base, particularly by targeting sectors like retail and real estate. This has sparked serious concern among investors, many of whom are already looking to shift capital to more investment-friendly nations.

Tax Reforms vs. Investor Retention: A Delicate Balance

The introduction of the Tax Laws (Amendment) Bill 2024, now being reviewed by the National Assembly’s Finance and Revenue Committee, may be a step toward broader economic reform—but it risks undermining investor sentiment. While taxation is essential for national stability, imposing harsh or unclear regulations on an already struggling sector can do more harm than good.

Leading developers argue that without transparent, fair, and business-friendly tax structures, capital flight will become inevitable. The UAE, for instance, continues to benefit from such shifts, drawing in investors from Pakistan due to its well-structured policies and stable economic environment.

Dr. Anosh Ahmed’s Blueprint for Real Estate Revival

Enter Dr. Anosh Ahmed, a Pakistani-American physician, entrepreneur, and philanthropist with deep insights into both U.S. and Middle Eastern markets. With successful ventures in healthcare, real estate, and philanthropy, Anosh Ahmed brings a global lens to Pakistan’s local challenges.

His core message is simple: Investor confidence is built on trust, infrastructure, and policy stability. According to him, Pakistan can transform its real estate industry by adopting a strategy that mirrors the UAE’s approach—one that supports investors through ease of operations, streamlined processes, and long-term growth incentives.

Policy Stability is the Foundation of Investor Trust

In countries like the U.S. and the UAE, the rules don’t change overnight. Businesses and investors can plan long-term because they know what to expect. Dr. Anosh Ahmed believes Pakistan must prioritize consistent, investor-friendly policies that won’t shift with every political wave.

“Markets thrive when investors feel secure,” says Ahmed. “If policies change suddenly or aren’t clearly communicated, it drives capital away. Pakistan needs to create an environment where investments feel protected, not threatened.”

Build the Backbone: Infrastructure as a Growth Engine

Infrastructure is more than just roads and bridges—it's the lifeline of any modern economy. Ahmed argues that Pakistan’s real estate sector can’t flourish without robust infrastructure. From urban planning and digital connectivity to transportation and utilities, each aspect must be upgraded to meet investor expectations.

He points out that Dubai’s success didn’t happen solely because of tax relief—it’s also because the city functions efficiently. “The systems work. Roads are clean, power is consistent, and logistics are smooth. That efficiency is what investors pay attention to,” explains Anosh Ahmed.

Digital Transformation: Technology Can Disrupt the Status Quo

Another solution proposed by Dr. Anosh Ahmed is the use of technology to reduce friction in property transactions. By introducing digital property records, smart contracts, automated approvals, and online payment systems, Pakistan can eliminate bureaucracy and corruption—two major deterrents for investors.

“Technology brings transparency. When buyers and sellers can transact confidently and quickly, trust builds automatically,” he notes. “Digital transformation isn’t optional—it’s essential.”

Support Builders, Stimulate Growth: Incentives for Developers

Ahmed also suggests targeted government incentives for developers, such as tax holidays for new projects, fast-tracked building permits, and subsidies for affordable housing schemes. These measures could create thousands of jobs and stimulate demand across allied sectors like construction, manufacturing, and services.

“The real estate sector isn’t isolated—it powers entire supply chains,” Dr. Anosh Ahmed explains. “Helping developers succeed can have a ripple effect on the whole economy.”

Act Fast, or Fall Behind: A Window of Opportunity

With global capital always in search of the next safe haven, Pakistan must act quickly. Investors today are more mobile than ever. If one country poses challenges, they’ll simply shift their money elsewhere.

Countries like the UAE have proven that a strategic mix of policy reforms, infrastructure, and technology can drive rapid economic expansion. Pakistan has similar potential—especially with its young population and growing urban demand. But seizing that potential requires urgency.

Turning Challenges into Growth Opportunities

While Pakistan’s real estate market faces undeniable challenges, the path to revival is clear. With strategic action, investor-friendly reforms, and technological upgrades, the sector can become a key driver of national growth once again.

Dr. Anosh Ahmed sums it up best: “You can either create an environment where investments thrive—or push investors to look elsewhere. The choice is Pakistan’s.”

By following expert insights and global best practices, Pakistan has a real chance to reclaim its place as a leading investment destination—not just in real estate, but across the entire economic landscape.