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With rapid real estate development taking place all over the country, you’ll see acres of land in cities all over the country being designed to create more living spaces for the people. Many developers, as well as the government, are working to facilitate low-income families. For this reason, government campaigns of providing affordable housing projects in Pakistan will be introducing a number of budget-friendly housing projects in the country. A new addition to this list is a new low-cost apartment project In Lahore, being planned by the Lahore Development Authority (LDA).
New Low-cost Apartment Project In Lahore: What Do We Know So Far?
While the federal government is constantly coming up with initiatives to provide affordable housing in Pakistan, the LDA is reportedly going to launch its own low-cost apartment project In Lahore. Under the plan, a total of 35,000 apartments will be built in the next three years in different areas of the city. In the first phase of the project, LDA will construct over 4,000 apartments in the Halloki area of the city.
The proposed plan includes apartments of five different sizes: 650-, 800-, 1,100-, 1,500-, and 2,200- sq yd. During the first phase, which comprises 4,000 apartments, each unit will be built on 650 sq yd and each is expected to cost around PKR 2.7 million. These will reportedly feature two bedrooms, 1 ensure and 1 separate bathroom, a lounge, a kitchen, and a balcony.
Details on pieces and layout about other categories of apartments included in this low-cost apartment project In Lahore will be made public in the following weeks.
During an interview to a leading news channel regarding the new low-cost apartment project In Lahore, Vice Chairman LDA, SM Imran, said that LDA has also signed an agreement with the Bank of Punjab (BoP) for providing allotment letters, as well as mortgage financing for this project. He also added that the apartments will be provided with gas and electricity connections, and a fully-functional sewerage system. The apartments will also have direct access to all the main roads of the city, and parks.
The announcement of this project came on the heels of the ongoing development of 4,000 apartments in LDA City under the Naya Pakistan Housing Scheme. The first phase of opening of tenders for the construction of the units was completed on Feb. 20.
Government’s Initiatives To Provide Affordable Housing
The Naya Pakistan Housing Scheme is a campaign by the government to house the homeless people of Pakistan by providing affordable housing options. In addition to apartments, houses will also be provided to people on easy instalments. In order to realize this vision at a faster pace and rapidly develop the houses and apartments, a Chinese company, registered in Pakistan as Easy Prefabricated Homes (Private) Limited is working to create 3.5-, and 7-marla environmental friendly, tough, and easy to construct houses. These low cost options are cheap, do not require cement and bricks, and can be easily mass-produced. The same company is now also developing model schools for areas of Balochistan as well.
Earlier this month, President Dr Arif Alvi also lauded the prime minister’s low-cost housing scheme, saying it would enormously benefit the underprivileged community of the country.
He added that the scheme would not only generate economic activities but also provide houses to the low-income strata of society at an affordable cost, and mortgage plan.
The Chairman of Akhuwat Foundation, Dr Muhammad Amjad Saqib has also given details of the government’s allocation of Rs. 5 billion to Akhuwat Islamic Microfinance through the Ministry of Housing and Works. Of this, Akhuwat reveals it has disbursed Rs. 3.37 billion, so far.
Low-cost housing is important for a stronger economy. It starts a chain of activity in the economy as it increases local purchasing power, creates employment opportunities, and generates new tax revenues.
Economic Benefits Of Affordable Housing
Affordable housing allows people to provide a roof over their heads. It is also integral for governments to house their people, and work towards alleviating poverty. Ubiquitous poverty affects a country’s Human Development Index, and makes it inadequate in extracting the full potential of its workforce as well. When people are aware of safe and affordable avenues of home financing, their trust in the government also increases.
With investments coming in the housing sector, there are more avenues for the government to collect property taxes. These taxes can then be used for spending on infrastructure projects within the economy. As more infrastructure is developed, associated industries also expand, such as cement, steel, and glass. As is in Pakistan’s case, the need for improved construction facilities has created a need for technologically-advanced infrastructure. As new players enter the market, new employment opportunities are also created. Therefore, it is essential for governments to introduce budget-friendly housing options in the country, and kick start activity in the economy.