DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/d70ffd/pakistan_real_esta) has announced the addition of the "Pakistan Real Estate Report Q4 2011" report to their offering.
Despite having a vast and rapidly expanding population and noticeably improving infrastructure, demand for commercial real estate continues to decline. One development which may help in the longer term is a drop in interest rates in August 2011. High interest rates (from 14% earlier in 2011) coupled with slowing economic growth had weighed heavily on the industry, and this change may be a small boon for the sector, even though growth continues to slow.
Key Opportunities In The Real Estate Market:
- Plenty of residential, mixed-use development projects are under way, including the eco-friendly Park Enclave complex in Islamabad, under construction by the CDA. The trend for environmentally conscious development seems to stem not from consumer demand but from the fact that it opens access to land in zones that would not normally be available for development.
- Lahore's local development authority is ripping down developments that were built illegally and this has produced its own demand for local retail space.
Key Risks To The Real Estate Market:
- Stalling projects have begun to surface. A joint venture between Dubai-based developer Emaar Properties and Giga Karachi began the development of the Crescent Bay complex. However, only two towers have been partially constructed and, in July 2011, Karachi's Defence Housing Authority took over the project (which is on its land).
- Rents and yields remain impossible to predict, given the precarious security situation in the country.
Companies Mentioned:
- Bestway Cement
- Ev-K-CNR
- Rufi Group
For more information visit http://www.researchandmarkets.com/research/d70ffd/pakistan_real_esta.