10 Factors Affecting Real Estate Market

 Pakistan’s real estate market is going through a major boom. One of the most lucrative and successful investment possibilities in Pakistan is real estate. People are investing in real estate projects and protecting their money for the long term because of the distinctive benefits it brings.

However, everyone would be investing in real estate if it were simple. The fact is that, despite your best efforts, there are some aspects of the real estate market that you are powerless to change. The best rental strategy, housing prices, and your potential return on investment are all impacted by these factors.

You must be aware of these elements in order to successfully invest in real estate. By doing so, you can assess the state of your local real estate market and decide whether or not purchasing an investment property is a wise move.

10 Factors that affect the real estate market

Certain factors impact the real estate market. These are as follows:

1. Demographics

Any country’s demographics are important to consider when selling and buying property. The partition of the population has a significant impact on both the value and demand for homes in Pakistan. The joint family system and the nuclear family system coexist side by side in Pakistani society at the moment (in which individuals start living separately after getting married and having children). A nuclear family can easily fit in smaller, autonomous house sections and apartments, whereas people who live in extended or joint families need a larger dwelling.

2. Interest Rates

High property taxes and interest rates are typically avoided. Nobody like making further donations once they have spent a hefty amount on buying a property, do they? The development of the real estate market is greatly influenced by interest rates.

People will most likely be unwilling to invest in it if a high tax rate is applied. If banks are providing customers with simple loans and payment plans depends on them as well. Many banks in Pakistan offer house loans. People are more likely to be able to invest in the real estate market if the stock market is doing well.

3. The economy

The situation of the economy as a whole has a significant impact on the value of the real estate. Economic metrics like the GDP, employment statistics, manufacturing activity, retail pricing, etc. are typically used to measure this. Generally speaking, real estate suffers when the economy is weak.

People will not invest their money in real estate ventures in a down economy, no matter how well you sell them. In other words, a booming real estate market is built on a strong and stable economy.

4. Unemployment

Unemployment is related to economic growth. Fewer people will be able to purchase a home when unemployment is on the rise. Even the worry about losing their jobs can deter people from investing in real estate.

5. Government Policies

Another element that can have a significant impact on the demand for and price of real estate is legislation. For as long as they are in effect, tax deductions, tax credits, and subsidies are a few ways the government might temporarily increase real estate demand. Understanding current government incentives will enable you to spot potentially misleading patterns and gauge changes in supply and demand.

Investors and developers may receive assistance from the government in the form of tax breaks, subsidiaries, and credits. These actions will assist the nation in developing better infrastructure while also luring in foreign capital for commercial and residential projects.

Investors and businessmen will relocate their operations to more cost-effective nations if a nation has tight and strict rules and regulations.

6. The Environment

The plot’s surroundings have a direct impact on the property. Whether or not the area is secure. whether the cost will eventually go up or not. It also matters where you are and how clean the air is. Whether the air is too clean or too dusty. Additionally, whether or not that area has a proper sewer line. These were a few environmental elements that have an impact on real estate.

7. Country’s Budget

In reality, the budget is what determines the price of a house. Housing costs will increase if the government increases the cost of cement or bricks. But if the government loosens restrictions on these companies, building costs will drop, bolstering investor confidence and bringing money into the nation.

If the investor is content, he will continue to add to his real estate society investments. Check out some of the commercial places to invest in Peshawar where you may invest and receive decent ROI. Commercial investments appear to be more profitable than residential investments.

8. Consumers’ Affordability

Along with rising property values in Pakistan, consumer affordability has also seen a sharp increase in recent years. The surge in new businesses, alternative employment options, co-working spaces, and freelancing in Pakistan are primarily to blame for this rise in consumer affordability. Consumer affordability, which is always rising, has increased demand for both residential and commercial properties, particularly in cities. This is not the situation in rural areas, where affordability has not changed much in recent years.

9. External Investors

The proportion of foreign investors undoubtedly directs the real estate sector. The real estate sector will flourish in a country that welcomes international investors and is investor-friendly

People who make investments in your country contribute a variety of resources, including money, human capital, machinery, technology, and other equipment. They will require space in order to manage all of these things successfully and efficiently. Real estate investment is then put into practice.

The real estate sector offers the investors factories, storage facilities, office space, showrooms, homes and flats, and even investments in plots or plot files.

10. Trust and Reliability

In the international economy, a nation’s reputation is of the biggest importance. People will instantly invest in the company if the builders and developers are honest about their work and ensure openness and confidence.

Saving vs. investing money is a debate that individuals frequently have. People would opt for saving options or perhaps stock investments instead of investing in Pakistani real estate if there were instances of property fraud, subpar projects, or poor customer service.

As a result, real estate agents need to keep their brands’ reputations in good standing with clients.


Real estate market values fluctuate greatly and are largely influenced by outside factors. It’s critical to consider both general market conditions and your particular property to determine how the value of your home will fluctuate over time, whether you want to buy a new home or use the equity in your current one for other purposes. All of these elements have a significant impact on the real estate market, regardless of whether you want to buy a home or invest in Pakistani real estate.

Al Sadat Marketing is one of the leading companies that has been providing its marketing services in Pakistan’s Real Estate sector for more than a decade and has seen great growth while gaining widespread public trust. Al Sadat Marketing  constantly provides its clients with the best deals and strives diligently to meet the demands of each investor.

Please contact us or visit our office if you require additional information, have questions, or wish to sell or purchase residential or commercial plots. Call us at 0331 1110005 or visit www.alsadatmarketing.com.

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