Role of Commercial Properties & Business Parks in Pakistan’s Economy
- by Team Jydad
- on 04-10-2017
- at 8:33 AM
Pakistan is a country with somewhat shaky economy. There is definitely hope for future with the current economic commitments nationally and internationally. Unfortunately, the commercial infrastructure and infinite tax laws are the major hurdles in the way of Pakistan’s economic growth.
Pakistan is very lucrative for foreign investment. In fact, our local economy is bombarded with the new businesses, startups and entrepreneurs trying to establish themselves. Unfortunately, these newbies don’t get any support when it comes to commercial spaces. The major cities of Pakistan lack commercial property for sale in Lahore, Karachi, and Islamabad and other large cities.
Of course, there are various commercial areas available in each of these cities but the space is not enough to cater everyone, especially businesses that have just begun their journey. Hunting a commercial property for rent in Lahore, Karachi, and Islamabad seems like an impossible task.
Ultimately, entrepreneurs and startups are forced to adjust themselves in residential areas either because non-availability of offices on rent in Lahore, Karachi, Islamabad or the rental cost is too high. A residential area is not equipped in any way to fulfill the demands of a corporate environment. At the end of the day, the negative impact of this adjustment has to be borne by the budding businessmen.
According to Pakistan Real Estate Report 2016 by Business Monitor International (BMI), a London-based research firm, “we expect demand to remain low across the commercial property sector, with a lack of supply in the development pipeline.”
BMI listed “security environment and developers' unwillingness to build on a speculative basis” as the reasons behind the lack of development in commercial property in Pakistan.
The current commercial areas are mostly filled by the retail sector, large companies, and successful business ventures, leaving almost no space for the mid-level businesses and startups. In case, if any young business is lucky enough to find a commercial property for rent in Lahore, Karachi, Islamabad, the cost is usually too much to bear.
Investment in commercial arena of Pakistan will not only provide opportunities to entrepreneurs and startups to establish themselves in a professional environment but it will also bring down the cost of commercial property and rents, creating a more balanced commercial atmosphere overall Pakistan.
You can do a sample test by advertising a commercial property for sale in Lahore, Karachi and Islamabad on property platform like Jydad.com or classified ads in different newspapers and see the results. The response will be overwhelming as businesses are in desperate need of commercial offices and spaces.
In fact BMI is also hopeful for future of Pakistan as it said, “the China-Pakistan Economic Corridor (CPEC) project will play an important role in the country's economic, industrial and foreign investment growth, and with a new framework for real estate investment trusts (REITs) and increasing governmental reforms, over the medium-to-long term we are confident that the commercial property sector will attract more international interest, providing that the government can attract greater foreign investment and reduce local tax laws on speculative developments.”
Finally, there is a huge gap in the demand and supply of commercial property in Pakistan. More and more people are looking for offices on rent in Lahore, Karachi, and Islamabad. Therefore, investment in commercial property remains an unattended sector that promises lucrative ROI. For latest updates on property investments, stay tuned with Jydad.com a comprehensive property platform in Pakistan.