An increasing number of Pakistani-American professionals are looking to buy a retirement house or make investments in their ancestral South Asian motherland. The National Association of Homebuilders reports a modest decline in the percentage of people who own a home. Many Pakistani-American workers anticipate investing in South Asia’s real estate market, which is expected to reach a value of US$ 2.11 trillion this year, despite the obstacles to home ownership.
South Asia continues to have one of the highest rates of ownership despite all the difficulties. Pakistan is a mere 2% contributor to the world property ownership share; major contributors are India and Nepal. Becoming a homeowner is still significant in culture.”Finding global opportunities for mobile capital is the future of work in real estate,” said Tayyaba Rizwan, a real estate and technology analyst. “For Pakistani-American, it is natural to want to invest and purchase properties within Pakistan and Pakistani real estate markets and workers must be able to adapt to this.”
With their considerable purchasing power, foreign investors continue to find South Asia to be an attractive place to invest. Even though there are 5.5 million South Asians in the United States, according to data from the Pew Research Center in 2021, they are the highest paid ethnic community, making up 29% of the buying power of the Asian diaspora in the country. The phenomenal growth of this group in the US is another illustration of their purchasing power.Strong cross-continental ties are maintained through music listening or cricket team support. Real estate businesses in Pakistan specifically aim to entice affluent foreign expats.
For instance, Broadway City Gwadar, a community being created in Baluchistan, Pakistan, has used slick roadshows in the UK and other countries to advertise their offer. Another real estate project called Eighteen is being built in Islamabad using similar standards to those of Dubai. Other recent construction projects, like Bahria Town, which has a scale replica of the Statue of Liberty and the Eiffel Tower, are obviously aimed at luring in these foreign workers. Due to their increased purchasing power, these housing societies in the real estate sector become increasingly alluring to foreigners.
South Asians are the highest paid ethnic community in the United States, making up 29% of the buying power of the Asian diaspora despite making up only 5.5 million of the country’s population, according to data from Pew Research Center in 2021.The real estate industry in Pakistan has significant issues due to political instability and economic strain, even though it remains an appealing investment option for wealthy expats with strong purchasing power. The sector’s expansion is being hindered by high interest rates, restricted access to home finance, and a convoluted legislative framework.
This problem is made worse by strict regulations, a shortage of financial products that suit a wide range of income levels, and a general lack of knowledge about mortgage products. “Pakistan is by no means the only nation that has experienced inflation, sluggish GDP growth, and high interest rates over the past ten years, all of which put further strain on the already vulnerable banking industry. State economies around the world are confronted with comparable difficulties, according to Malik Riaz, Chairman of Bahria Town and a Pakistani real estate mogul.
Significant challenges have become apparent as a result of ongoing political instability alongside the economic climate for the real estate investors. “The real estate sector is valued at approximately USD 1 trillion, and contributes around 2.5% of the country’s GDP, a significant chunk which cannot be ignored,” said Riaz, “There is currently a transformation which the real estate market in Pakistan is undergoing. And just like this transformation does not take place overnight, we should expect it to have a lasting impact on the country and not only on the real estate sector.”
Less than $100,000 will get you a spacious multiple-bedroom house, albeit significantly smaller than its American equivalents in terms of square footage. This is what has drawn many to Pakistan, along with a cheap cost of life. The once-notoriety for its security is also getting better. Naturally, American investors might not discover that Pakistan offers a welcoming atmosphere for foreign businesses to operate in. Foreign investment is hampered by corruption and a lack of justice. Transparency International’s annual report on corruption ranks Pakistan 133rd out of 180 countries.
According to Riaz, political persecution in Pakistan is “open secret,” and because of his relationship to the former prime minister, Imran Khan, he is frequently the focus of defamatory press coverage and court actions meant to damage his reputation.Those connected to Bahria Town, such as me, the shareholders, and their families, have consequently been unjustly accused of engaging in illicit activity. I should point out that a media campaign has been started against us, even though the legal system has not substantiated any of these allegations,” Riaz stated.
