Lately, there has been a surge of excitement in the real estate market, particularly in upscale urban areas.

The initial wave of optimism stems from discussions about a potential real estate package and the formation of a task force to address the sector’s challenges. For the past two years, the real estate market has been nearly stagnant, dragging down the construction industry along with it.

Opinions on reviving the sector through fiscal and monetary incentives are deeply divided.

One camp is highly cautious, fearing that a resurgence in real estate could push the country toward a full-blown macroeconomic crisis while reopening channels for black money to flow into the system. They argue that past housing scheme scams could resurface, allowing big tycoons to reap the benefits while leaving ordinary investors stranded.

On the other hand, proponents of real estate revival view it as a key driver of economic growth. They emphasize its ability to generate employment, address critical housing shortages, and sustain 40-50 allied industries. This group advocates for broad incentives to stimulate the sector.

The reality, however, lies somewhere in between. The concerns of skeptics have merit—historically, real estate in Pakistan has served as a haven for the black economy, with fraud and defaults prevalent in a sector dominated by powerful groups, including politicians. Yet, some of the demands from real estate stakeholders are legitimate.

It is important to recognize that housing........

© Business Recorder