Housing projects worth Rs600 billion planned

[Salman]

Housing projects worth Rs600 billion planned

KARACHI: A number of big property companies have planned to kick-start housing projects estimated at Rs600 billion in the next six months, chairman of Association of Builders and Developers of Pakistan (ABAD) said on Thursday.

Speaking at a press conference at the closing ceremony of three-day ABAD International Expo 2014, Mohsin Sheikhani said the exhibition attracted foreign firms, which showed their interest to invest around one billion dollars.

Giving details of the local investment, he said housing projects worth Rs150 billion have already been launched at the expo.

A few construction projects of Rs350 billion were in the pipeline. And, a few projects of another Rs100 billion were at the very early stages of designing, while several developers were yet to find land for their new projects in Karachi, Lahore, Islamabad and Hyderabad. “All the projects will be started in the next six months,” Sheikhani said.

He said six private firms based in UAE signed memorandum of understandings (MoUs) with the ABAD for their investment of around $200 million in Pakistan.

These firms were Modelux Properties, High End Real Estate, Property Explorer, Iqra Real Estate, Ideal Homes, and Future Icon Real Estate. Another three real estate firms of UAE have also shown interest to make investment.

ABAD chairman said the association estimates another $800 million from other foreign companies operating in Germany, China and Turkey. “We are expected to sign MoUs with the firms operating in these countries very soon,” he said.

Three Chinese firms - manufacturers of tiles, sanitary items and electricity switches – are keen to set up their factories in Pakistan.

Some 40 Singaporean developers are scheduled to visit Pakistan in September.

“Many of them are expected to initiate housing projects in Pakistan after the construction and development of housing projects slowed down in Singapore,” Sheikhani said.

The likely increase in construction activities, particularly in the housing sector in Pakistan, would help the government to generate higher taxes from the real estate sector, create new job opportunities and silently deal with law and order situation in the country.

The government may collect up to Rs40 billion in taxes and create employment opportunities for eight million people if it provides basic infrastructure facility to developers to construct 400,000 to 500,000 housing units every year, said the association chief.

At present, the government is collecting Rs20 billion in taxes, while developers are constructing only 200,000 units every year. “The actual demand stands at 500,000 housing units every year.”

ABAD chairman said: “This is one of the most successful international exhibitions in real estate sector. The exhibition, which coincided with Independence Day, attracted a large number of visitors.”

“We have proposed to the federal government to expand Karachi Expo Centre to 10 halls from the current six halls for arranging bigger exhibitions in future,” he said.

Among well-known visitors were cricketer Shahid Afridi, PPP Senator Saeed Ghani, Shoaib Ahmed Siddiqui, Commissioner Karachi and Abdullah Zaki, president of Karachi Chamber of Commerce and Industry.