How Socio-Economic Issues Impact in The Real Estate Industry A Case Study of Contemporary Karachi

Abstract

Karachi, which is the economic hub of Pakistan, plays a very important role in the country's economic development, generating 70% of the economy's revenue and helping to stabilize the GDP. This city is known for its beauty and lights. When we talk about its demographics, it is a multicultural city where people from all over Pakistan can be seen, along with their cultures. However, as big as this city is, it has many issues, particularly social and economic problems, which significantly affect various sectors, especially the real estate industry. For this reason, there is a notable decrease in investment in the real estate sector. People’s economic conditions are very weak; those belonging to the middle class often rely on monthly income, which prevents them from fulfilling their dream of homeownership. Karachi has a large number of residents from the middle class who are unable to invest in the real estate sector, which deprives the government of significant tax revenues. The government needs to create more job opportunities to address social and economic issues, and it also needs to tackle social problems. It should facilitate the construction of affordable housing through low-cost housing schemes so that people can be motivated to invest and accelerate the buying and selling process. The government should strengthen the regulatory framework and strictly enforce its established laws to eliminate corruption in this sector and restore investors' confidence to invest in the real estate sector, enabling rapid development through the government's correct initiatives and development policies.