Commercial real estate has been one of the key driving factors of the economy all across the globe. So is the case in Pakistan, it has been a core element of economic growth driven through the real estate sector. As investments increase, commercial and real estate sectors boast a larger growth, specifically calling for more developers to pitch in. Zaitoon has been one of the key players in both residential and commercial real estate developments. With the latest trends in commercial real estate, Zaitoon is all about amalgamating residential developments with key commercial areas.
Market Definition and Scope
Commercial real estate is a type of real estate development used for commercial purposes. For instance shopping centers, business complexes, industries, and warehouses. In Pakistan, this sector is also spread all over and may include small units like a single shop, commercial plazas, and industrial buildings.
Potential Difference
The following Includes the difference between residential and commercial properties:
| In-Scope | Out-of-Scope |
|---|---|
| Office spaces, shopping centers, industrial zones | Residential real estate, agricultural land |
| Projected market value, growth rates, emerging trends | Property management practices, specific case studies |
| Commercial properties in major cities | Non-commercial properties |
Market Structure and Growth Projections
Pakistan’s commercial real estate market will be valued at US$0.70 trillion in 2024. Between 2024 and 2029, the market will grow at a compound annual Growth Rate of 3.96%. As a result, increasing its market volume to US$0.85 trillion by 2029. Potential growth drivers are an expanding economy, urbanization, and heightened interest among foreign investors in investing in Pakistan.
Zaitoon’s Leadership in Real Estate Excellence
Zaitoon focuses on urbanization and the economy’s growth by providing top-notch real estate services. Furthermore, focusing on excellent management skills that contribute to the GDP and boost the economy. Our senior team includes individuals like Mr. Farhan Cheema, who have exceptional management and leadership skills. His expertise empowers Zaitoon Group to manage operations and provide feasible solutions for the real estate sector.
Market Comparison with USA
The US is anticipated to drive the highest value in the global real estate market, with its market size reaching a staggering US$25,280.0 billion in 2024. Against this backdrop, the market size for Pakistan, though considerably smaller in value, presents high growth potential and thus is an attractive destination for investors who would like to leverage emerging market opportunities.
Trends in Commercial Real Estate
Increased Demand for Office Spaces
As Pakistan’s economy is continuously growing, there is a simultaneous demand for modern offices, particularly in major cities such as Karachi, Lahore, and Islamabad. As businesses expand, they need high-quality office buildings for smooth operations.
2. Expansion of Shopping Centers and Commercial Plazas
The retail sector is a major growth area in Pakistan and develops shopping centers and commercial plazas. However, the current development trend is heavily concentrated in metropolitan cities, where demand for retail spaces is increasing daily.
3. Rising Foreign Investment
Foreign investors are increasingly interested in Pakistan’s commercial real estate market due to its strategic location and potent growth. This type of foreign capital further induces development and innovation in this sector.
4. Equity Appreciation
Properties in Pakistan have returned commercial and strong equity appreciation over the years; this trend is expected to continue. With the highest appreciation for the value of properties at prime locations, Investors are eager to acquire commercial plots in areas with high growth potential; therefore, increased competition would lead to higher prices.
5. Location-Specific Insights
Some of the main cities in Pakistan where the demand for commercial plots is quite high are Karachi, Lahore, Islamabad, and Faisalabad. These cities are home to commercial activity and will, therefore, be prime locations for the commercial property developing business. Commercial plots within these areas have shown notably strong appreciation values and promise an upsurge over the next few years.
Commercial real estate and 10 years outlook
Over the next decade, the commercial real estate market in Pakistan is expected to undergo several transformations. Moreover, these transformations are considered to be a positive contributor to the sector’s growth.
- Technological Integration: The adoption of smart building technologies and sustainable practices will likely increase, driven by global trends and investor demand for modern infrastructure.
- Urbanization: As more people move to cities, the demand for commercial spaces in urban centers will continue to rise, expanding commercial zones and developing mixed-use properties.
- Commercialization of Emerging Cities: Secondary cities like Multan, Gujranwala, and Peshawar are expected to witness significant commercial real estate development driven by local economic growth and infrastructure improvements.
Pakistan’s Commercial Real Estate Potential
Commercial real estate has a positive trend in Pakistan, as the economy is expanding and more business opportunities are being created. As a result, this offers the commercial properties a boom and makes the commercial landmark flourish and generate more revenue, contributing to economic growth through the means of revenue generation through commercial property taxation and promoting startups.
