Commercial Real Estate - Pakistan

Pakistan

The projected value of the Commercial Real Estate market market in Pakistan is expected to reach US$0.61tn in 2024.
This market segment is anticipated to show an annual growth rate (CAGR 2024-2028) of 3.13%, leading to a market volume of US$0.69tn by 2028.
In comparison to other countries, the United States is expected to generate the highest value in the Real Estate market, reaching US$25,370.00bn in 2024.
The commercial real estate market in Pakistan is experiencing a surge in demand due to the country's growing economy and increasing foreign investment.

Key regions: United Kingdom, China, Asia, France, Europe

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Analyst Opinion

The Commercial Real Estate market in Pakistan is experiencing significant growth and development.

Customer preferences: Customers in the Commercial Real Estate market in Pakistan are increasingly looking for modern and well-equipped office spaces. They prefer locations that are easily accessible and have good infrastructure. Additionally, there is a growing demand for commercial spaces that offer amenities such as parking facilities, security services, and recreational areas.

Trends in the market: One of the key trends in the Commercial Real Estate market in Pakistan is the rise of co-working spaces. With the increasing number of startups and freelancers, there is a growing demand for flexible and affordable office spaces. Co-working spaces provide a solution to this demand by offering shared workspaces with a range of amenities. This trend is particularly popular in urban areas such as Karachi and Lahore. Another trend in the market is the development of mixed-use properties. Developers are increasingly incorporating residential, commercial, and retail spaces into a single property. This trend is driven by the desire to create vibrant and integrated communities where people can live, work, and shop in close proximity.

Local special circumstances: Pakistan has a young and rapidly growing population, which is driving the demand for commercial real estate. The country has a large number of young professionals who are entering the workforce and starting their own businesses. This demographic shift is creating a need for more office spaces and commercial properties. Furthermore, the government of Pakistan has implemented policies to promote foreign investment in the real estate sector. These policies include tax incentives and ease of doing business reforms. As a result, there has been an increase in foreign investment in the Commercial Real Estate market in Pakistan, leading to further growth and development.

Underlying macroeconomic factors: The Commercial Real Estate market in Pakistan is also influenced by macroeconomic factors such as GDP growth, inflation, and interest rates. When the economy is growing and inflation is low, businesses are more likely to invest in commercial properties. Similarly, low interest rates make it more affordable for businesses to borrow money for real estate investments. Additionally, the stability of the political and security situation in Pakistan plays a crucial role in the development of the Commercial Real Estate market. A stable political environment and improved security conditions attract both domestic and foreign investors, leading to increased demand for commercial properties. In conclusion, the Commercial Real Estate market in Pakistan is experiencing growth and development due to customer preferences for modern office spaces, trends such as co-working spaces and mixed-use properties, local special circumstances such as a young population and government policies to promote foreign investment, and underlying macroeconomic factors such as GDP growth and stability in the political and security situation.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.