In my previous article, I talked about the need to embrace change and reject conventional modes of thinking with regard to real estate development in Pakistan.<\/p>\n
This instalment mostly has to do with concrete actions (solutions: the natural next step), instead of mere diagnosing and theorising. And don\u2019t worry, I\u2019ll explain the \u2018RED\u2019 part of the title shortly.<\/p>\n
Revisiting the problem<\/strong><\/p>\n But first things first.<\/p>\n In order to fully realise the positive impact of real estate development on the economy, we need to create the right<\/em> policy framework for the sector. One that is centred on transparency, integrity, innovation, and inclusiveness.<\/p>\n To practically achieve this, it is first necessary to identify the fundamental weaknesses that currently weigh down on \u00a0Pakistan\u2019s economy. These, in my assessment, are as follows:<\/p>\n All of these are structural issues which have proven to be very difficult for our successive governments to solve throughout our national history.<\/p>\n Solutions: what effective land utilisation can bring<\/strong><\/p>\n As such, a big part of the solution to these problems lies in making a coherent and efficient use of our country\u2019s land resources. By exploiting our existing land efficiently, we can hope to attain the following advantages:<\/p>\n To realise these goals, we need to get serious on how we approach the property sector. Narrowly speaking, the piecemeal \u2018ad-hoc\u2019 nature of property development needs to change \u2013 for which we need to get real and organised.<\/p>\n At this stage, formulating a dynamic real estate development policy in consultation with the major stakeholders is essential for Pakistan\u2019s economy.<\/p>\n The primary aim of a federal real estate development policy should be to maximise the potential of real estate development in the country – for achieving any number of essential common goals. In other words, the proper exploitation of land and property is key to improving people\u2019s lives.<\/p>\n This calls for a development policy intervention, and this is how I propose we go about executing it:<\/p>\n (i)\u00a0\u00a0\u00a0\u00a0\u00a0 Protect our land resources; particularly our natural parks, beaches, and areas of natural beauty and\/or intrinsic strategic value;<\/p>\n (ii)\u00a0\u00a0\u00a0\u00a0 Redevelop and rebuild our cities along spatial development concepts.<\/p>\n (i)\u00a0\u00a0\u00a0\u00a0\u00a0 Streamlining the approval process (which is currently arbitrary and cumbersome, involving multiple authorities);<\/p>\n (ii)\u00a0\u00a0\u00a0\u00a0 Handing out systemised incentives for developers to build infrastructure (roads\/utilities) through public-private partnership;<\/p>\n (iii)\u00a0\u00a0\u00a0 Facilitate the issuance of REITs (Real Estate Investment Trusts) and other investment tools in local and international markets; achievable only fixing our regulatory system.<\/p>\n An expression of concern (the things we need to own)<\/strong><\/p>\n For far too long, we have neglected the transformational effect that optimum use of land resources can have on our economy.<\/p>\n The lack of any coherent development policy will simply not stand anymore.<\/p>\n We live in a global economy, where people can invest anywhere they want to (in the world).<\/p>\n We cannot afford to take investor dollars, particularly from overseas Pakistanis, for granted anymore.<\/p>\n I am certain that if the tenets of the above policy framework were in place, we would not today be faced with a grim situation where the investors of a 200sq km master planned community are left in legal limbo due to irregularities concerning the original sale of land. We need to ensure that incidents of this type do not happen ever<\/em> again.<\/p>\n While we have been content with standing still, other countries and cities have prospered.<\/p>\n At this point, if anyone is in any doubt how real estate development can change the global profile of a nation within a relatively short time period – all they need to do is visit Dubai, Singapore, or Kuala Lumpur.<\/p>\n Taking inspiration from the Gulf<\/strong><\/p>\n I have lived in Dubai for well over a decade. I have seen first-hand how the efficient use of land has completely transformed the gulf city \u2013not just by creating thousands of new homes, but more importantly, by creating a new lifestyle which truly embraces all nationalities and cultures.<\/p>\n Through the judicious use of coastal areas to build luxury villas and tall towers to providing astonishing views for offices and general city-living, world-class restaurants\/hotels\/malls to create lifestyle destinations, all as well fantastic roads and utility infrastructures to promote local commerce and industry \u2013 Dubai really seems to have it all!<\/p>\n Because Pakistan is blessed\u2026<\/strong><\/p>\n And here is the really good news (saved for last)!<\/p>\n Unlike Dubai, our country has all the natural resources that the Gulf States and most places in the world can only dream of.<\/p>\n A temperate climate with four full seasons\u2013 check.<\/p>\n Thousands of miles of unblemished coastline \u2013 check.<\/p>\n Natural lakes and freshwater streams \u2013 check.<\/p>\n Stunning sceneries and landscapes, including some of the world\u2019s most beautiful mountain views \u2013 check.<\/p>\n Massive natural reserves of minerals to power not just ours, but the world\u2019s new renewable economy \u2013 check<\/p>\n An under-employed and unskilled population base which has still not been tapped for its full potential \u2013 check<\/p>\n And I can go on and on\u2026<\/p>\n So what are we waiting for?<\/p>\n Let\u2019s work on developing Pakistan today, and paint the country RED<\/em>: for Real Estate Development.<\/p>\n","protected":false},"excerpt":{"rendered":" In my previous article, I talked about the need to embrace change and reject conventional modes of thinking with regard to real estate development in Pakistan. This instalment mostly has to do with concrete actions (solutions: the natural next step), instead of mere diagnosing and theorising. And don\u2019t worry, I\u2019ll explain the \u2018RED\u2019 part of the title shortly. Revisiting the problem But first things first. In order to fully realise the positive impact of real estate development on the economy, we need to create the right policy framework for the sector. One that is centred on transparency, integrity, innovation, and inclusiveness. To practically achieve this, it is first necessary to identify the fundamental weaknesses that currently weigh down on \u00a0Pakistan\u2019s economy. These, in my assessment, are as follows: An over-reliance on imports (especially foreign fuels) coupled with low exports \u2013 resulting in a balance of payments crisis; High utility costs \u2013 leading to uncompetitive industries; A manufacturing sector which does not make value-added goods; Poor quality of infrastructure (both utility and transport); Lack of foreign investment; Ad-hoc and unfriendly regulatory environments; Poor utilisation and the high cost of land; Lack of documentation of the economy, particularly in the real estate…<\/p>\n","protected":false},"author":63,"featured_media":47824,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11052],"tags":[447,4455,32],"persona":[],"class_list":{"0":"post-48490","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-lifestyle","8":"tag-development","9":"tag-infrastructure","10":"tag-pakistan","11":"cat-11052-id"},"acf":[],"yoast_head":"\n\n
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