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Real Estate Sector

ImageGlobally, the construction and engineering services industry is regarded as one of the largest and most fragmented industry accounting for 10-12% of GDP in many countries.


Construction and engineering services sector is one of the fastest developing sectors in Pakistan. After a short run of notable performances in the gigantic Indus Basin works which included construction of large dams (Tarbela, Mangla etc), barrages and link canals and the prestigious Pakistan Steel Mills project, the sector is presently in a state of commercial realization. Bahria Town has played a pioneering role in commercializing the real estate development and marketing at a nationwide continuous scale. Today, due to the retail investment momentum generated by Bahria Town in real estate, a host of other sizable national concerns have joined the industry. Some prestigious international real estate development & marketing brands have also funneled investment in billions of US dollars over the last one year only. Such is the un-tapped business opportunity and growth in the real estate sector in Pakistan.

Bahria Town has the distinction of being the daring pioneer and a contributor to the establishment of the real estate sector as a “formal industry” in Pakistan. Today it is due to these efforts of Bahria Town that real estate industry regulatory measures are under view at the national governmental level and real estate investments have been brought under the tax net. With a dearth of over 800,000 housing units per year in Pakistan and a total combined production capacity of the public and private sector estimated at 350,000 units per year there is a piling of some 450,000 housing units that add into the next years backlog. The investment opportunity, for both the national and international observer, is therefore better than ever.

The construction sector has the potential to export services worth US$ 1 billion per year to Saudi Arabia, Central Asian States and other Middle Eastern countries. Therefore the semi-skilled and the skilled man power is in ample supply for new development initiatives.

Further the recent earthquake has also brought the attention of the regulatory bodies, and equally importantly that of the end buyer and resident to the need for enforcement of building codes, safe land use patterns and quality construction practices. Seismic consideration in architectural design is now heavily being monitored and benchmarks have been identified for various seismic zones. The end customer is now more aware to the engineering and technical expertise required for construction than ever and is willing to prefer quality units over cheaper and only superficially designed private contractor proposals. It would be appropriate to state that today’s buyer of real estate products in Pakistan values quality offers in the real estate construction sector and is in anticipation for such new opportunities. This but makes a perfect business case for investment in the real estate development sector in Pakistan.

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