Real estate is potentially one of the most popular sectors for investors in the country\u2013 or outside it, as real estate is, unarguably, the most popular form of investment overseas Pakistan choose to make in Pakistan. Indeed, a large amount of remittances, the primary source of foreign exchange for Pakistan, are spent in investment in real estate. It also forms a large part of Pakistan\u2019s economy, directly or indirectly boosting dozens of related industries and can provide significant revenue for the government.<\/p>\n
Particularly since early 2010, the real estate\u2019s growth has been phenomenal, bringing huge benefits for its investors, as luxury real estate projects sprang up around the country. Calls for regularisation of real estate has followed this rising growth and the governments have been making efforts to do just that. However, an aspect that has so far been ignored among the policymakers is the demand from the real estate fraternity that the sector be granted the status of an industry.<\/p>\n
A look at how the industry status will impact the real estate will provide a better idea into why the demand exists and why it should be considered.<\/p>\n
Why the industry status?<\/strong><\/p>\n A look at the current situation of the real estate itself would be enlightening itself. The market has been slow for a while, at least it was until before the elections and prices had been either stable or decreasing. In Karachi, there are still other factors to play. Investors, in general, have been more cautious, so far. In this scenario, the hardcore realtors have been left to fend for themselves and get through the crunch situation on their own.<\/p>\n Defence & Clifton Association of Real Estate Agents (DEFCLAREA) General Secretary Johar Iqbal explained that right now realtors have a lot of capital in the form of plots \u2013 worth hundreds of millions of rupees with a large number of real estate agents who are located in Defence and Clifton itself. But those are just files, worth nothing without the demand. They are in a bind because they can do nothing.<\/p>\n If, he contended, the real estate had the status of an industry, and the realtors could get loans at the interest rates of 3%-4%, they could begin constructions of their project, get through the slow times and by the time the boom returns to the real estate, their projects will be ready and they will conveniently be able to return the loans as well. \u00a0This will also create hundreds of thousands \u2013 potentially millions of jobs. As it is \u2013 without the status of industry \u2013 banks are not particularly keen to provide loans or provide them at much higher interest rates.<\/p>\n The general benefits of the industry status include:<\/p>\n Johar expanded on his argument in favour of the industry status by explaining that after passing through several stages of evolution, a third- or fourth-generation of realtors are now taking control of real estate. These are the educated lot with high level management and marketing degrees and they are contributing significantly to this country and its real estate. Moreover, people from all walks of life have attached themselves to real estate. It is only fair that the industry be given a status that will help it grow further \u2013 simply for its contribution to public itself.<\/p>\n Moreover, if Pakistan\u2019s realtors are to compete with the international realtors \u2013 and they can \u2013 this is going to be inevitable, Johar felt. The government is looking to tax real estate, it is only fair that real estate reaps benefits from the government too!<\/p>\n\n