Houses shortage in Pakistan – Reasons & Solutions
Dec 27, 2021 by Naukhez Arshad Qadir
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Real estate investment is considered one of the most revenue-generating industries in Pakistan. The industry rarely goes down the hill until there is some significant real estate crisis or major political instability. The country is known as a seller’s market in real estate due to the houses shortage in Pakistan.
Pakistan is facing a shortage of approximately 7-lac residential units per year, and only half are being met. Worldwide, countries face a shortage of houses, and there are several reasons behind it. In this guide, we have gathered a few of the reasons for the houses shortage in Pakistan, the effects and efforts made to cope with the problem.
Pakistan is facing a shortage of approximately 7-lac residential units per year, and only half are being met. Worldwide, countries face a shortage of houses, and there are several reasons behind it. In this guide, we have gathered a few of the reasons for the houses shortage in Pakistan, the effects and efforts made to cope with the problem.
Reasons behind housing shortage:
Before exploring the reasons behind the shortage of houses, it is better to understand what it means by shortage of houses in Pakistan:
A housing shortage means the demand for houses is more than the available units to accommodate people. When there is an imbalance in demand and supply, it causes a housing deficit in the country. The real market is considered stable only when more houses are constructed in four to size months, and no new projects are coming.
A buyer’s market means a place where the supply of houses is better than the demand; on the other hand, the seller’s market is when the supply of houses is less than the demand.
We all know that shortage of housing units is due to fewer housing projects, but the reasons for the matter are little known to most of us. The following are a few of the reasons that can help you understand the slow supply of houses to the constantly increasing population in the country.
Impact of inflation on construction material:
The construction of houses involves material and labor. With the alarming increase in inflation, particularly after COVID 19 restrictions and lockdowns, building a house has become a task for people with a humble background.
The prices of cement and steel are among the few major costs in construction, and the rates are spiking. The other costs include bricks, wood and a major portion involves labor. With the increase in construction material cost, the profit margin of developers and builders has also increased. It eventually increased the prices of houses.
Likewise, if someone is constructing the house for themselves, the cost will pass over the budget, and many people cannot afford it.
Migration to urban areas:
People are moving to urban areas for better facilities, healthcare, education and career growth. Cities provide a variety of choices for career, and gradually all families move to the big cities. The migration process is increasing with time, and it caused a surge in demand for houses and eventually caused a shortage of residential units in the city.
Shortage of houses is the major issue in metro cities as there are better options for a good life and small towns and villages are not affected by it.
Increase in population:
Population worldwide, including Pakistan, is increasing day by day, and the resources are not growing and consuming rapidly. Increasing population means the need for more and more houses every day, and it will increase the shortage day by day.
Limited land in metro cities:
The land is required to construct houses, and every city has its limits. The population is constantly increasing, and the land in the city is limited. Everyone wants to live in a place with facilities and amenities near the living area, increasing pressure on new construction.
Developers are building peri-urban housing societies in the outskirts of metro cities. However, people prefer living in the city’s inner areas with close access to work, schools, and medical facilities. Therefore, it is one major reason for the shortage of houses in Pakistan.
Inefficient use of Land:
One of the major causes of houses is unplanned construction and inefficient use of land to construct houses. Smart houses and efficient land use can maximize land use for residential needs.
Affordable houses – a dream:
Living space, a house or a flat is the basic need of all like eating and drinking water; it is also important for humans’ healthy growth. The increase in demand for houses leads to issues surge in prices of houses, increase in slums, homelessness, unhygienic ghettos, etc. With the increase in prices, it became harder for people to rent, buy, or live in the city.
Solutions for the housing crisis in Pakistan:
The world’s population is increasing, and efficient use of resources with proper strategy is the only way to deal with it. It applies to the housing and construction industry too, because within a few years, more people will be looking for houses than now, and the issues will get more critical in big cities. Here are a few solutions for houses shortage in Pakistan:
·Peri-urban housing schemes:
One of the solutions is constructing peri-urban housing schemes in the outskirts of the metro cities. It can minimize the gap between the supply and demand of the houses. The schemes are usually launched by the government, where they provide subsidized houses and make home financing so the people with humble backgrounds can buy and build homes of their own. These low-cost housings can be effective only when the development is planned effectively.
·Naya Pakistan Housing Program:
Naya Pakistan Housing Program is one of the remarkable efforts of the incumbent government to cope with the issue of house shortage in the country. Buyers can invest in houses for sale in the scheme and development of peri-urban housing schemes in easy installments.
·Smart/Micro Houses:
Micro houses or smart houses are needed, instead of building a luxurious big house; the focus should be small, sustainable and efficient construction. Smart houses can be constructed with planning and sustainable material for energy-efficient construction.
·Better Facilities in Rural Areas:
Living in rural areas and towns should be attractive by providing facilities and better living opportunities. It will take some burden off from the metro cities and encourage expanding small cities and towns.
·Vertical Housings – ultimate solution:
Last but not least; Vertical houses are the ultimate solution for the crisis of houses in Pakistan. Vertical houses are the best use of small space in accommodating many families in one building. Apartments/ flats in high-rise buildings provide an affordable and luxurious lifestyle while the buyer can enjoy facilities and amenities at their best.
That’s a wrap! The housing shortage is not a simple issue that can be dealt with in a day or two. A smart and effective strategy is needed to meet the demands and bring a harmonious balance in supply and demand. Feel free to share your feedbacks and queries on info@reall.pk
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