dubai vs pakistan’s real estate market

[Document subtitle]

MALEEHA SHAHZAD

DATE: 18 July 2023

Table of Contents
Chapter 1:....................................................................................................................................................1
Introduction:...............................................................................................................................................1
Overview of Dubai’s Real Estate Market:....................................................................................................1
Overview of Pakistan real Estate market:................................................................................................2
Difference in approach:...........................................................................................................................2
Chapter 2:....................................................................................................................................................4
Dubai’s Real Estate Transformation............................................................................................................4
Introduction:...............................................................................................................................................4
Dubai’s Vision and transformation:.........................................................................................................4
Chap 3:........................................................................................................................................................7
Dubai’s building infrastructure....................................................................................................................7
Office Buildings and Commercial Developments with Breathtaking Views:................................................7
Incorporation of Cutting-Edge Infrastructure and Comforts:...................................................................7
Trends in Dubai’s Real Estate Market:.....................................................................................................8
Chapter 4:..................................................................................................................................................10
Pakistan’s focus on Local residential Societies..........................................................................................10
Introduction:..............................................................................................................................................10
Real Estate Trends in Pakistan:..............................................................................................................11
Chapter 5:..................................................................................................................................................12
A Comparison of Pakistan’s and Dubai Real Estate Market.......................................................................12
Introduction:..............................................................................................................................................12
Strategies and approaches:...................................................................................................................12
Chapter 6:..................................................................................................................................................15
Future Outlook..........................................................................................................................................15
6.2: Possibility of Pakistan Taking Up Related Methods........................................................................16
6.3: Importance of Investment in Infrastructure, Government Action, and International Cooperation17
Government policies:............................................................................................................................17
Global Outreach:...................................................................................................................................17
6.4: Real Estate Market Predictions for Dubai and Pakistan..................................................................17
Conclusion:................................................................................................................................................18
References:................................................................................................................................................19
Chapter 1:
Introduction:
Overview of Dubai’s Real Estate Market:

Although their sizes and approaches are different, Dubai and Pakistan both have thriving real
estate markets that contribute significantly to their economies.

Over the past few of decades, Dubai's real estate market has expanded and developed in
extraordinary ways, making it one of the world's most famous and dynamic markets. Investors
and developers from all over the world have contributed to the city's growth from a small
commerce and fishing hub into a global commercial and tourism destination.

Investors from all over the world have been drawn to Dubai's booming real estate market in
recent years. Investors are drawn to the city for its convenient location, prosperous economy, and
high standard of living. Expo 2020 in Dubai is anticipated to boost the local real estate market.

The real estate market in Dubai is crucial because it helps drive the local economy, brings in
foreign investment, and establishes the city as a premier destination for international trade and
tourism. The industry has been essential in diversifying the economy, generating new jobs, and
boosting overall growth.

The Dubai real estate market has been steadily improving in recent years. Long-term visas for
investors and retirees, flexible payment plans, and steps to improve the business environment are
just a few of the measures the government has introduced to increase demand. Foreign investors
keep pouring into the city, especially from places like India, Pakistan, the UK, and Saudi Arabia.
The commercial, retail, hospitality, and industrial segments of the economy have all contributed
to the expansion of Dubai's real estate market. The city's prominence and ability to lure tourists
and investors are both enhanced by the fact that it often plays host to major international
gatherings.
In general, Dubai's property market has changed dramatically during the past two decades.
Despite setbacks and ups and downs, the city has been a magnet for investors looking for
possibilities in the Middle East thanks to its dedication to innovation, infrastructure development,
and business-friendly legislation.

Overview of Pakistan real Estate market:

The real estate market is also quite important in Pakistan. It boosts GDP, makes it easier for
people to get jobs, and attracts new capital to the country. Bahria Town and Defense Housing
Authority (DHA) are two of Pakistan's largest real estate developers. Bahria Town is a prominent
private real estate firm that has built many neighborhoods in different locations around Pakistan.
They're well-liked because of the convenient services, safe neighborhoods, and thoughtful
layouts they provide. In contrast, DHA is a government-affiliated agency whose main mission is
to build and maintain homes for Pakistani military personnel. Their infrastructure and amenities
are often regarded as among the best in the world.

Difference in approach:
The real estate markets in Dubai and Pakistan are both growing, but they are being shaped in
different ways. With its newfound openness and investor-friendly regulations, Dubai has become
a magnet for capital from around the world. The municipal government has passed freehold
ownership laws, allowing foreigners who are not UAE citizens to purchase property in certain
regions. Dubai's real estate sector has flourished thanks in large part to the city's welcoming
attitude toward foreign investment.

While both Dubai and Pakistan's real estate markets have expanded dramatically in recent years,
they have taken very different routes to getting there.

 Ambition and Scope:

Dubai's ambitious, cutting-edge building projects aim to create iconic skyscrapers worldwide.
Pakistan has developed real estate, however the projects are little.

 Ownership by Non-Natives:
Dubai offers non-citizens freehold property in some regions to attract foreign investment.
Pakistan bans foreign ownership despite efforts to attract investment.

 Regulatory Framework:

Dubai's real estate regulating agencies and laws ensure transparency and investment protection.
Pakistan's sector is under regulated, posing transparency and accountability problems.
Chapter 2:
Dubai’s Real Estate Transformation
Introduction:
Dubai, in the United Arab Emirates (UAE), has transformed dramatically over the past few
decades, emerging as a leading player on the international real estate market. The strategic
initiatives and forward-thinking leadership of Dubai's administration have made the city a
magnet for visitors and investors from all over the globe. The aim and growth of Dubai to
become a global real estate hub will be discussed in this chapter, along with the city's many
appealing features.

Dubai’s Vision and transformation:

The Plan and the Progress That Have Made Dubai a World Real Estate Mecca. Dubai, in the
United Arab Emirates (UAE), has changed dramatically in recent decades. Dubai's forward-
thinking government saw that the real estate industry might be a significant contributor to the
city's expanding economy. The plan was to promote Dubai as a destination for international
visitors and investment alike.

Dubai spent substantially on infrastructure development to realize this goal, resulting in cutting-
edge facilities, transportation networks, and architectural wonders. Dubai's dedication to creating
a visually stunning and technologically advanced cityscape has made it a popular tourist
destination and investment hotspot.

 Inviting Visitors and Potential Investors:

In order to entice tourists and businesspeople to visit the emirate of Dubai, the city has developed
a number of high-caliber tourist destinations and attractions. The city is well-known for the
cutting-edge architecture, high-end services, and lively, multicultural environment that it exudes.
Due to the city's cheap taxes, pro-business regulations, and general ease of doing business there,
Dubai is a popular destination for investors from other countries.

 Iconic projects:
Several landmark developments in Dubai are examples of the city's real estate boom and
redevelopment. One of the most famous is the Palm Jumeirah, an artificial island in the shape of
a palm tree that juts out into the Arabian Gulf. It has high-end lodging options for both residents
and visitors, drawing the wealthy and those in search of adventure.

The Dubai Marina development is yet another major undertaking that has altered the city's
skyline. A variety of residential, business, and recreational establishments coexist in this seaside
community. Residents and visitors alike are drawn to the marina because of the distinctive
lifestyle it provides, complete with several restaurants, nightclubs, and yacht clubs.

Dubai's skyline is one of the city's main draws because of the spectacular buildings that dot it.
One of the most ambitious real estate projects ever attempted is the Palm Jumeirah, a man-made
island in the shape of a palm tree. It has high-end riverfront homes, beautiful beach resorts, and a
thriving local culture.

Dubai's attraction as a tourist destination is due in part to the city's renowned buildings, as well
as the city's vivacious culture, year-round sunlight, world-class retail complexes, and
entertainment opportunities. Because of this, real estate investment has become increasingly
popular among both private individuals and large financial institutions.

Dubai's attraction as a tourist destination is due in part to the city's renowned buildings, as well
as the city's vivacious culture, year-round sunlight, world-class retail complexes, and
entertainment opportunities. Because of this, real estate investment has become increasingly
popular among both private individuals and large financial institutions.

Government initiatives and polices:

The government of Dubai implemented numerous initiatives and legislation that greatly aided the
real estate sector by attracting international investment. The government has taken steps to
encourage investment and safeguard investor rights because it understands the significance of
doing so.

The creation of free zones like the Dubai International Financial Centre (DIFC) and the Dubai
Multi Commodities Centre (DMCC), which offer tax breaks and other benefits to corporations
and international investors, was a major step. As a result of these free zones' 100% foreign
ownership policies, tax benefits, streamlined firm registration procedures, and world-class
infrastructure, Dubai has become a popular choice for international corporations wishing to set
up shop in the Middle East.

The government also instituted regulations and legislation to increase safety and openness in the
real estate market. To monitor the industry, enforce rules, and safeguard the interests of all
parties involved, the Real Estate Regulatory Agency (RERA) was set up. Investor confidence
and foreign direct investment have both increased because to RERA's role in regulating the stock
market and maintaining fair practices.

Dubai also actively sought to attract foreign investment by hosting and attending real estate
conferences and trade exhibits across the world. These gatherings were used to promote Dubai's
real estate market, draw in international investors, and forge relationships with foreign builders.
Chap 3:
Dubai’s building infrastructure

Famous for its futuristic towers and lavish hotels, Dubai is sometimes described as "the city that
never sleeps." A skyline that is a monument to modernity and grandeur is the consequence of the
city's dedication to breaking new ground in construction and engineering. This section will focus
on the commercial and high-end office buildings with breathtaking vistas that have been built in
Dubai, as well as the state-of-the-art amenities and services that have been built into these
buildings. The effect of these changes on luring foreign investors will also be investigated.

Office Buildings and Commercial Developments with Breathtaking

Views:
Dubai's many modern office buildings and luxury retail complexes showcase spectacular
panoramas over the city and its surroundings. The world's tallest building, the Burj Khalifa, is a
prime example of this type of mixed-use structure. Its observation decks give sightseers and
office workers a bird's-eye view of Dubai's thriving metropolis.

In addition, there is a cluster of skyscrapers in Dubai Marina that house illustrious corporations'
headquarters. Views of the marina, Arabian Gulf, and Palm Jumeirah, a man-made island with
high-end hotels and resorts, are breathtaking from here. Modern towers in desirable areas like
Jumeirah Lake Towers and Business Bay offer breathtaking views to their business tenants.

Incorporation of Cutting-Edge Infrastructure and Comforts:

Dubai's real estate developments are well-known for their incorporation of cutting-edge features
and services, which are designed with high-end consumers in mind. These developments provide
more than just a place to go to work; they also include amenities like spas and fitness centers.
Many Dubai office buildings, for instance, have installed smart technologies to improve their
energy management, security, and communication. These systems provide a cutting-edge and
productive workplace by giving employees access to sophisticated automation, individualized
controls, and unhindered communication.

1. Effects on the Attraction of Foreign Investors

The success of Dubai in luring foreign investors is in no small part due to the city's devotion to
and investment in high-end construction projects. The city's lofty construction projects have
earned it a name for extravagance and grandeur, making it an alluring location for the wealthy
and corporations in need of impressive workplaces.

Dubai's real estate market attracts foreign investors because of the city's stability, investor-
friendly legislation, and central location as a commercial and trade hub. The city's developed
infrastructure, which includes cutting-edge transport systems and luxurious public facilities,
contributes to its allure.

Trends in Dubai’s Real Estate Market:

Dubai's off-plan housing sales increased dramatically that year. There were 2,599 off-plan
property transactions totaling AED 4.95 billion (about USD 1.3 billion) in August 2021. Sales of
off-plan real estate in Dubai have reached their greatest value since December 2013, an increase
of eight years. It's also the most off-plan sales in a single month since November 2019.

Meanwhile, in August, Dubai Hills Estate, Arabian Ranches, Palm Jumeriah, Damac Hills 2, and
Mohammed bin Rashid City were the most in-demand regions for villas and townhouses
purchased off-plan in Dubai. The areas with the most demand for off-plan apartments were
Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, and Jumeirah Village Circle.

In addition, the average off-plan house sale price in Dubai increased by 53% between August
2020 and August 2021, from around AED 1.2 million to AED 1.9 million. August 2021 had
median off-plan flat prices of AED 1.1 million, up 48% from AED 745,500 in the same month of
2020. The median price of an off-plan villa or townhouse in the UAE this past month was over
AED 1.8 million, up 12 percent from AED 1.6 million in the same period last year.
Source: Industry Associate

Additionally, Dubai's dedication to hosting international events like Expo 2020 has also piqued
the interest of investors throughout the world. The Expo is a showcase for Dubai's amazing
building infrastructure and other technological achievements. More businesses and tourists will
be attracted to the city as a result of these gatherings.
Chapter 4:
Pakistan’s focus on Local residential Societies
Introduction:
The growth of local residential societies has long been a priority in Pakistan's real estate sector.
The rising population, the spread of urbanization, and the cultural predilection for
homeownership in the country are all contributing factors to the emphasis on residential
developments for local inhabitants.

Among the largest privately held real estate development firms in Asia is Malik Riaz Hussain’s
Bahria Town. It has completed a wide variety of residential developments in cities across
Pakistan, including Lahore, Karachi, and Islamabad. Modern infrastructure, convenient
amenities, and secure gated communities are hallmarks of Bahria Town developments. Housing
in these developments can be found at a wide range of price points, from modest apartments to
lavish mansions.

The Defence Housing Authority (DHA), also founded by the Pakistani military, has been
instrumental in creating housing for the local populace. Communities in DHA developments are
often safe and well-thought-out, with a variety of home types available. Parks, schools, stores,
and hospitals are just some of the conveniences that inhabitants of DHA-funded developments in
large cities enjoy.

Pakistan's real estate market is notable for its lack of major commercial projects and skyscraper
offices. Demand for housing, which is expected to increase, is a major factor in the current
emphasis on local residential societies. As the middle class grows, so does the demand for
affordable housing, and this is where most new construction is focused. The commercial
infrastructure necessary to foster a thriving economy and attract foreign investment has been
neglected in favor of housing construction. This has led to a dearth of major commercial projects
and high-rise office buildings.
Real Estate Trends in Pakistan:

The real estate sector in Pakistan is experiencing a number of changes at the moment. The need
for inexpensive housing is one of these tendencies. More low-cost housing developments are
needed because of the growing population and increasing urbanization.

Foreign investors are becoming increasingly interested in the Pakistani real estate industry, a top
trend due to the business's significant profit potential. This pattern is expected to increase next
year (2023).

Companies like Bahria Town and DHA have played a vital role in helping Pakistan's real estate
sector fulfill the country's growing need for housing by developing large-scale residential
communities. To attract foreign money and broaden its offers, Pakistan's real estate market must
overcome a number of obstacles, such as the lack of major commercial developments, high-rise
offices, and international investment.
Chapter 5:
A Comparison of Pakistan’s and Dubai Real Estate Market

Introduction:
Over the past two decades, Dubai's and Pakistan's real estate markets have moved in quite
different directions. Due to its openness to foreign investment and its rules that favor property
developers, Dubai has become a thriving and popular real estate hub. However, due in part to
geopolitical difficulties and a less favorable regulatory framework, international exposure and
investment in Pakistan's real estate sector have been relatively low. Dubai's global outlook and
investor-friendly policies have had a significant impact on the city's real estate sector, which
we'll discuss in this chapter, while Pakistan's limited international exposure and investment will
be highlighted.

Strategies and approaches:

Dubai: Dubai has placed itself in a prime position to become a major international financial,
touristic, and commercial center. The government has launched a number of programs and
regulations designed to entice investors and developers from abroad. Investment-friendly
policies may include tax breaks, duty-free zones, less cumbersome regulations, and legal
protections for entrepreneurs. Luxury residential and commercial developments, famous
landmarks such as the Burj Khalifa, and internationally acclaimed events such as the Dubai Expo
2020 are all examples of the world-class infrastructure that Dubai has constructed.

Pakistan: The real estate sector in Pakistan has adopted a more regional and conventional
strategy. Domestic demand has been prioritized, and efforts to entice foreign investment have
been minimal. Bureaucratic red tape, difficult land acquisition procedures, and contradictory
regulations all contribute to a difficult regulatory climate. Real estate investment trusts (REITs)
and efforts to streamline property registration procedures are only two examples of the reforms
the government has enacted in recent years to streamline the real estate sector.
  Global Influence of Dubai's Pro-Investor Policies:

The real estate market in Dubai has been revolutionized by the city's international attitude and
investor-friendly rules. Foreign businessmen, property developers, and wealthy individuals are
flocking to the city in search of stable and fruitful investment prospects. Mega-projects, high-end
homes and businesses, and cutting-edge building plans have all been made possible by an
increase in foreign investment. Long-term investments in Dubai's real estate market have been
bolstered by the city's strict regulatory structure, openness, and legal protections for investors.

 There is a lack of foreign involvement and interest in Pakistan's property market.

Due to a number of issues, international interest and investment in Pakistan's real estate sector
have been relatively low. Foreign investors have been scared away by issues of security and
political instability. Complex land acquisition procedures, inadequate property registration
systems, and rights-related difficulties have all contributed to a less than ideal regulatory climate
in the past. These problems, in addition to the market's inefficiency and lack of transparency,
have discouraged foreign investment in Pakistan's real estate industry.

 The Two Markets' Continuing Expansion and Development

Over the past couple of decades, Dubai's real estate industry has expanded and developed at an
astounding rate. Palm Jumeirah, Dubai Marina, and Downtown Dubai are just a few of the city's
famous landmarks that have altered the cityscape. In the early 2000s, the market had a boom,
followed by a drop in 2008 due to the worldwide financial crisis. However, Dubai's real estate
market swiftly recovered, showing resilience and drawing fresh interest from investors.
Sustainable development, affordable housing programs, and industry diversification into
hospitality, retail, and healthcare have all contributed to the market's evolution in recent years.

On the other hand, the real estate market in Pakistan has seen both boom and bust throughout this
time. At various times, domestic demand and speculation were the primary factors in its rapid
expansion and price appreciation. However, there were also lulls in activity and price corrections
in the real estate market. Recent reforms and government actions aim to solve the difficulties of
limited international exposure and investment and attract foreign investment, which will allow
the market to reach its full growth potential.
Chapter 6:
Future Outlook

Other regions that want to attract international investors and establish a vibrant real estate market
should learn from Dubai's example. The following are some of the most important things we can
learn from Dubai:

1. Leadership with Vision:

Leaders in Dubai had the foresight to envision the city as a center for commerce and tourism on a
worldwide scale, and they worked tirelessly to make that vision a reality. Investors from other
countries were drawn in large part because of the government's dedication to long-term planning
and growth.

2. Strategic Investment in Infrastructure:

Dubai has put a lot of money into developing its infrastructure, such as its modern airports,
ports, roads, and public transportation. As a result of these investments, the city is now more
business- and resident-friendly, making it more attractive to potential investors.

2. Policies That Are Good for Business:

Dubai's tax benefits, reduced regulations, and strong legal framework all contributed to a
business-friendly environment that enticed foreign investors to set up shop there. As a result of
these regulations, the business climate was consistent and welcoming, luring numerous sectors.

3. International Promotion and Advertising:

Dubai took the initiative to promote itself internationally by holding a number of large-scale
events, exhibits, and conferences. The city successfully marketed itself to foreign investors and
tourists, resulting in a rise in property values.
6.2: Possibility of Pakistan Taking Up Related Methods
The real estate sector in Pakistan may benefit from similar techniques if the country were to
implement them. Pakistan's strategic position and huge population make it a promising place for
economic development. Pakistan can improve its real estate market by adopting the following
policies:

1. Building up the System:

Enhancing connection within and between cities, as well as expanding and modernizing modes
of transportation, should be top priorities for Pakistan's infrastructure development. As a result,
not only will overall standard of life for locals improve, but the area will also become more
appealing to potential investors and employers.

2. Encouragement of Investment:

Confidence among both domestic and foreign investors can be increased by the implementation
of investor-friendly policies such as streamlined regulations, tax incentives, and a clear legal
framework. Pakistan will become more attractive as a location for real estate investment if the
investment procedure is simplified and regulatory impediments are reduced.

3. Advertising Efforts on a Global Scale:

Pakistan needs to make more of an effort to market itself to foreign investors. Foreign
investment can be attracted to the country through publicity efforts, attendance at international
real estate conferences and expos, and direct communication with overseas investors.

4. Cross-Sector Collaborations:

Infrastructure development can be sped up and private sector expertise attracted by encouraging
public-private partnerships. When the public and private sectors work together, projects can be
completed more quickly and investment prospects can be strengthened.
6.3: Importance of Investment in Infrastructure, Government Action, and International
Cooperation
Building up the necessary infrastructure, passing progressive laws, and reaching out to the rest of
the world are all important factors in ensuring a prosperous real estate market. All of these
variables work together to make the current economic climate favorable for investment.

Improvements in Connectivity, Accessibility, and Quality of Life from Investment in

Infrastructure. Communication, utility, and transportation systems are all part of this. The
expansion of the real estate market is directly proportional to the state of the area's infrastructure.

Government policies:
Simplified rules, tax breaks, and clear legal frameworks all contribute to an inviting setting for
investors. Building investor confidence, encouraging long-term investment, and reducing risks
all require consistent regulations and effective governance.

Global Outreach:
Promoting investment prospects through worldwide outreach and marketing efforts. Exposing a
region's potential and luring foreign investors can be accomplished by attendance in international
exhibitions, conferences, and events. A strong reputation and the possibility of foreign
investment are both boosted by successful worldwide outreach.

6.4: Real Estate Market Predictions for Dubai and Pakistan

Dubai: The Dubai property market has a bright future. The city's economy has shifted away from
its traditional reliance on oil and gas and is now bolstered by other industries like tourism,
technology, banking, and renewable energy. Real estate in Dubai is predicted to continue
growing as a result of the city's preparations for Expo 2020, the completion of major
infrastructural projects, and the loosening of foreign ownership regulations. Maintaining long-
term growth, guaranteeing affordability, and adjusting to shifting market conditions all call for
constant vigilance.
There is huge untapped potential in Pakistan’s property industry. Positive signs for the industry
include the government's efforts to make doing business easier, build new infrastructure, and
implement investor-friendly laws. Real estate development stands to benefit greatly from the
China-Pakistan Economic Corridor (CPEC) project, which aims to improve transportation and
commerce between the two countries. Attracting international investors and achieving
sustainable growth, however, requires overcoming obstacles like bureaucratic bottlenecks,
regulatory uncertainties, and security concerns.

Conclusion:

There is huge untapped potential in Pakistan’s property industry. Positive signs for the industry
include the government's efforts to make doing business easier, build new infrastructure, and
implement investor-friendly laws. Real estate development stands to benefit greatly from the
China-Pakistan Economic Corridor (CPEC) project, which aims to improve transportation and
commerce between the two countries. Attracting international investors and achieving
sustainable growth, however, requires overcoming obstacles like bureaucratic bottlenecks,
regulatory uncertainties, and security concerns.
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