The real estate sector in Pakistan is gathering a significant amount of international attention, particularly from overseas Paksitanis. For overseas Pakistanis, investing in property back home offers financial returns and a connection to their roots. With the government’s supportive policies and the sector’s promising outlook, now is a good time to explore real estate investment in Pakistan.
Why Overseas Pakistanis Are Investing in Real Estate
Emotional and Cultural Connection
Many overseas Pakistanis have a deep-rooted desire to maintain a connection with their homeland. Investing in property provides a tangible link, whether it’s for future residence, family use, or as a legacy for the next generation. A great proportion of families in Pakistan have a singular or a few members of the family living abroad to provide sustenance for the family living in Pakistan. It is important for them to find their families properties and suitable living spaces.
Official reports and statistics from the Bureau of Emigration & Overseas Employment show that approximately 9.1 million Pakistanis live abroad. A vast majority of these overseas Pakistanis migrate to the Middle East, the UAE, and Saudi Arabia in particular. Since our culture emphasizes on extended family relations, it’s common for many people aborad to maintain close ties with their families back home. Given this proportion, it is safe to assume that a substantial proportion of Pakistani households have at least one member of the family living abroad.
Lucrative Investment Returns
Real estate in Pakistan has consistently shown strong returns. or instance, property prices in Lahore’s Garden Town have shown significant appreciation over recent years. According to Zameen.com’s Real Estate Price Index, the average price of 10 Marla houses in Garden Town increased by approximately 45% from September 2023 to September 2024, rising from PKR 1.48 crore to PKR 2.14 crore. Such figures highlight the sector’s potential for substantial capital appreciation.
One issue that constantly comes up for overseas buyers is that they are often out of touch with the current market valuations of properties in Pakistan. Therefore, they need reliable real estate experts to provide them with candid quotations. At HalalKeys, our real estate experts hold the expertise to guide international clients through the purchase and property finding process with complete transparency. Commonly, there is a gap between the declared property values and the market property value. Recently, FBR has imposed revised strategies for reducing the gap between declared prices for properties and actual market prices that the buyers should rightfully pay.
Government Incentives
The Pakistani government has introduced initiatives like the Roshan Apna Ghar scheme. This has been launched by State Bank fo Pakistanallowing overseas Pakistanis to invest in property through their Roshan Digital Accounts. This scheme allows Non-Resident Pakistanis (NRPs) and Pakistan Origin Card (POC) holders to remotely and digitally purchase, build, or renovate residential properties in Pakistan through their Roshan Digital Accounts (RDAs). This contributes to bringing foreign investments to the country’s housing sector.
Current Real Estate Market Trends: High-rise and high-tech
Rapid urbanization is leading to increased demand for housing in major cities. Islamabad, Lahore, and Karachi are witnessing significant growth, with new housing societies and commercial projects emerging to cater to this demand. This, in particular, explains why we recently observed such a spike in the trend of living in high-rise apartments.
With limited land availability in urban centers, there’s a shift towards vertical living. High-rise residential and commercial buildings are becoming more prevalent, offering modern amenities and addressing housing shortages.
The adoption of digital platforms has revolutionized property transactions. Overseas investors can now explore properties, conduct virtual tours, and complete transactions online, making the investment process more accessible and transparent.
Steps for Overseas Pakistanis to Invest
Get Documentation Ready
Ensure you have a valid National Identity Card for Overseas Pakistanis (NICOP) and a Roshan Digital Account. These are essential for property transactions and accessing banking services in Pakistan. Before investing, ensure you have the following:
- National Identity Card for Overseas Pakistanis (NICOP): This is essential for property transactions and accessing banking services in Pakistan.
- Roshan Digital Account (RDA): An RDA is required to participate in the Roshan Apna Ghar scheme. You can open an RDA online through participating banks.
Research and Select Property
Identify the city and type of property that aligns with your investment goals. Whether it’s residential plots, apartments, or commercial spaces, thorough research is crucial. This is where HalalKeys comes i. We understand that being a resident of another country makes this process and communication much harder. Therefore, our agents ensure that the clients are frequently updated with any progress/updates, meetings are scheduled according to your convenience and your input and specifications are heeded.
Collaborate with trusted real estate professionals who have experience dealing with overseas clients. They can provide insights, handle legalities, and ensure a smooth transaction process.
Always Check for Legal Aspects
Before finalizing any deal, ensure the property has clear ownership titles, necessary approvals, and is free from legal disputes. This step is also very important to safeguard your investment. One thing that your agency must ensure that the land isn’t part of some legal dispute, or as they call it here, “Qabza” property. In 2021 and 2022, 6,803 overseas Pakistanis filed complaints regarding land grabbing through the citizens’ portal, according to Zameen.com’s survey. For financing options, you can seek participating banks which include some prominent names such as Meezan Bank, HBL, UBL etc.
Challenges to Consider
Market & Regulatory Fluctuations
Like any investment, real estate markets can experience ups and downs. Staying informed about market trends and economic indicators can help mitigate risks. Government policies and regulations can impact property investments. It’s essential to stay updated on any changes that might affect your investment.
Fraudulent Practices
Unfortunately, some investors have faced fraudulent activities. Always conduct due diligence, verify all documents, and work with reputable agents to avoid such pitfalls. Some instances of these fraudulent activities include: double selling or multiple ownership issues, unapproved housing schemes, faek property listings on unreliable agencies, and delyed or incomplete projects.
Investing in Pakistan’s real estate offers overseas Pakistanis a blend of emotional fulfillment and financial gain. With the sector’s promising growth, supportive government initiatives, and technological advancements simplifying the investment process, now is an ideal time to consider property investment in Pakistan. By conducting thorough research, engaging trusted professionals, and staying informed, overseas investors can make informed decisions and reap the benefits of this burgeoning market.