The chief executive of Eighteen says real estate can stabilize Pakistan’s economy if supported by consistent policies, regulatory enforcement and improved access to financing, arguing that housing development has broader economic spillover effects beyond property sales.
Speaking to journalists in Islamabad about Real Estate, Dr. Mohamed Mansour said population growth, urban expansion and demand for planned communities are expected to increase the need for quality housing by 2026.
What is the issue?
Pakistan faces rising housing demand driven by demographic growth and rapid urbanization. Developers and policymakers are debating how the real estate sector can contribute to economic stability while addressing regulatory gaps and informal development.
Dr. Mansour said real estate is an interconnected industry that supports construction, banking, manufacturing, retail and services. He noted that housing projects create employment across skill levels, including engineers, architects, laborers and small suppliers.
Why does real estate matter for the economy?
According to industry estimates cited by the company, the real estate sector directly and indirectly supports more than 250 allied industries. These include cement, steel, transport, financial services and consumer goods.
Large-scale housing projects can generate income, stimulate local supply chains and increase demand for formal banking and financing services. Planned urban communities may also help manage pressure on major cities by distributing development more evenly.
What policy changes are being discussed?
Dr. Mansour called for consistent government policies, regulatory clarity and stronger oversight of housing societies. He said unlawful or unregulated developments undermine investor confidence and discourage long-term capital inflows, including investment from overseas Pakistanis.
He emphasized the need for stricter enforcement, transparent approvals and effective monitoring to formalize the sector and improve credibility.
How do interest rates affect real estate?
The CEO also pointed to the policy rate set by the State Bank of Pakistan as a key factor influencing investment. He said a single-digit policy rate could reduce borrowing costs for developers and homebuyers, making long-term projects more financially viable.
Lower interest rates generally improve access to credit, which can support housing construction and related business activity.
What happens next?
Future growth in the sector will depend on regulatory reforms, financing conditions and overall macroeconomic stability. Analysts say coordination between federal and provincial authorities, financial institutions and developers will be central to shaping the industry’s role in economic planning.
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