The impact of Covid on Pakistan’s real estate market
The Coronavirus outbreak (COVID-19) has had a significant impact on both the global economy and Pakistan’s economy and real estate. This outbreak has especially negatively affected micro, small and medium-sized enterprises (MSMEs). To help MSMEs reduce business losses and weather the crisis. This essay will investigate the effects of the COVID-19 outbreak on these businesses and provide legislative recommendations. We used an exploratory approach and carefully examined the existing literature. Including reports from the field, research articles, and policy documents, to comprehensively understand the situation. Additionally, we collected data from 184 Pakistani MSMEs via an online questionnaire to provide empirical support.
According to the results of the survey, a large number of the participating companies have suffered severe consequences. And are currently dealing with issues such as financial, supply chain disruption, lower demand, decreased sales, and loss of profit. Almost two-thirds of participating businesses predicted the lockout that lasted for more than two months was also unsustainable. Don’t hesitate to contact us if you want to know more about Kingdom Valley in Islamabad.
Real Estate Price Reductions
Pakistan’s real estate market faced difficulties in 2018 as politics forced a change in administration. The COVID-19 pandemic has hit, and the question is how many land values will decline. The Great Recession of 2008, which resulted in a global property value decline of almost 20%, was a great opportunity for investors back then. To determine what to do, we must consider it.
Situation financially
The country’s real estate market will likely do well on the international stage if the nation’s economy is strong. When economies are strong, investors make investments, increasing the demand for real estate. This happens because of how Pakistani real estate interacts with other industries and markets in the country. On the other side, if the nation’s economy is failing and deteriorating over time, the real estate market will also collapse. The real estate market suffered a loss when investors withheld their money when they became aware of the state of the economy, which led to losses in the investment market.
Real Estate Education Resources Are Limited
A reputable or competent professional real estate Agent can be difficult to find in Pakistan. The majority of these companies are run exclusively based on their prior professional experience. With qualified and accredited real estate agents, the market will be greatly improved. It is possible to maximize the sector’s potential by maximizing the skills of real estate professionals who are well-versed in the field. An increase in the number of qualified real estate agents.
The purchasing power of the average person
There is no doubt that the purchasing power of Pakistanis is declining. On the other hand, Middle Eastern nations have passed laws requiring private companies to reduce their employee salaries by 40%. The real estate bubble is only going to persist.
Problems with inventory
Real estate markets can experience issues with inventory if there is an imbalance between supply and demand. For example, there may be fewer active listings in one area, but there are more potential buyers. Under such conditions, real estate loses when a potential buyer withdraws from the market. It is also possible for inventory problems to result in a reduction in cap rates. A rise in commercial real estate rental income without a corresponding rise in cost is an example of cap rate compression.
Summary
The MSMEs comprise over 90% of Pakistan’s national businesses, contributing 40% of its GDP and 40% of its export revenue (Shah, 2018). For practitioners and policymakers to streamline strategies to support Pakistani MSMEs during the current crisis, this study examined how the COVID-19 epidemic affected them. This is the first study that has carefully gathered information on the effects of the COVID-19 outbreak in Pakistan.
