Pakistan’s real estate sector was once a cornerstone of economic growth and investment. For decades, property investment was viewed as one of the safest ways for both local and overseas Pakistanis to secure their wealth. But in recent years, rising economic pressures, policy instability, and external conditions have caused a significant slowdown in this once-thriving industry.

As the country works towards stabilizing its economy, experts believe a revival of the real estate sector could provide much-needed momentum. Among those voices is Dr. Anosh Ahmed, a Pakistani-American entrepreneur, physician, and philanthropist with global business experience in healthcare, real estate, and development. Drawing from his international success, Dr. Ahmed outlines a clear path forward for Pakistan’s real estate recovery.

The Current Challenges Facing Real Estate in Pakistan

In the past, real estate served as a safe haven during economic turbulence. With the constant depreciation of the Pakistani rupee, property ownership was considered a more secure option than bank deposits, which often lost value due to inflation.

However, the recent spike in interest rates made real estate financing unattainable for many. When the State Bank of Pakistan raised rates to a historic 22%, borrowing for home purchases or commercial property became financially impossible for the average investor. Although the government has since lowered rates to 12%, confidence in the market remains shaky.

Adding to these challenges is the looming pressure from the International Monetary Fund (IMF), which is demanding Pakistan broaden its tax base—including the retail and real estate sectors—in exchange for a much-needed $1 billion loan tranche. While broadening the tax base is essential for national revenue, industry stakeholders fear that sudden, rigid taxation could trigger a flight of capital to more investor-friendly nations.

Concerns Over the Tax Laws (Amendment) Bill 2024

At the center of this debate is the Tax Laws (Amendment) Bill 2024, which is currently under review by Pakistan’s National Assembly. Many in the real estate sector are concerned that overly aggressive tax policies could further shrink investment.

Several prominent developers have issued warnings that if the government does not adopt a more investor-friendly stance, Pakistan risks losing capital to countries like the United Arab Emirates, where business regulations are more supportive and less volatile.

Anosh Ahmed: Lessons from Dubai’s Real Estate Success

Dr. Anosh Ahmed brings a valuable perspective to the conversation, having expanded his own real estate operations from the U.S. to Dubai. He credits Dubai’s investor-friendly ecosystem for helping his ventures flourish and believes Pakistan can benefit from adopting similar strategies.

According to Dr. Ahmed, tax incentives alone are not the secret to Dubai’s success. “What makes Dubai truly attractive is the infrastructure, the ease of doing business, and the policy stability,” he explains. From smooth company registration processes to long-term investor visas, Dubai offers a comprehensive support system that fosters investor confidence.

Infrastructure and Transparency: The Building Blocks of Confidence

For Pakistan to regain momentum, Dr. Ahmed highlights the urgent need to improve infrastructure across the country. Efficient transportation networks, reliable electricity, digital connectivity, and urban planning are all essential to creating a thriving real estate environment.

“Dubai’s seamless infrastructure enables investors to operate without constant disruptions. Pakistan must invest in similar development to attract long-term investments,” says Anosh Ahmed.

Transparency is another pillar of success. Dr. Ahmed emphasizes that countries like the U.S. and UAE provide legal clarity and protection to property investors. This level of security is often missing in Pakistan, where inconsistent regulations and policy shifts create hesitation among potential investors.

Digital Transformation in Real Estate

Dr. Ahmed believes that digital innovation could play a major role in reviving Pakistan’s property market. In many developed nations, real estate transactions are now conducted entirely online, increasing transparency and reducing bureaucracy.

“Pakistan should adopt digital platforms like blockchain for land registration and automated systems for project approvals. These technologies can eliminate corruption, speed up processes, and restore trust,” he suggests.

Online property listings, transparent pricing tools, and government-backed e-portals could significantly reduce inefficiencies and make real estate more accessible to young investors and overseas Pakistanis alike.

Government Support: Incentives, Not Obstacles

Another key recommendation from Dr. Anosh Ahmed is the need for proactive government support. He argues that rather than complicating the regulatory landscape, the government should offer incentives that encourage development.

“Real estate drives economic growth. It creates employment, increases demand for materials, and stimulates related sectors like construction, design, and manufacturing. Offering tax breaks or fast-track approvals for new developments can unleash tremendous growth,” he notes.

Simplifying regulations, lowering capital gains taxes, and offering subsidies for first-time buyers could restore market activity and attract much-needed investment.

The Bigger Picture: Pakistan’s Untapped Potential

Despite the challenges, Dr. Ahmed remains hopeful about the future. He believes Pakistan possesses all the right ingredients for economic transformation—an ambitious young population, a growing urban middle class, and a geographically strategic location.

“With the right reforms, Pakistan’s real estate sector can bounce back stronger than ever,” he says. But he also warns that time is critical. “Delays in reform will only push investors to places like the UAE. Pakistan must act quickly and decisively.”

Conclusion: A Call for Strategic Reform

The road to revival is not an easy one, but it is achievable. Pakistan must strike a careful balance between economic reforms and investor support. Excessive regulation and unclear policies will only prolong the downturn, while smart, targeted reforms can open the door to sustainable growth.

These recommendations reflect Dr. Anosh Ahmed’s key perspective on how Pakistan can revive its real estate sector, emphasizing the importance of stable policies, infrastructure, and digital transformation to attract long-term investment.