- The next five years offer potential for significant returns, particularly in sectors aligned with the country’s evolving economic, social landscape
Interview with Mr. Nadeem Ahmed — CEO, Realancer
PAGE: Tell me something about yourself, please.
Nadeem Ahmed: I am a seasoned real estate and construction expert with over a decade of experience in the industry, primarily focused on Karachi, Pakistan. As the CEO of Realancer, a real estate, marketing, and construction company operating in Bahria Town Karachi, I have had the privilege of leading innovative projects that cater to the evolving needs of our market. My career spans over 24 years of teaching business to students, where I have been deeply committed to fostering entrepreneurship among the youth. This commitment is reflected in Realancer’s mission, which was established to provide students and professionals with the opportunity to engage in real estate as freelancers while enjoying the same benefits as full-time realtors.
PAGE: How would you comment on investment opportunities in the real estate sector at this juncture?
Nadeem Ahmed: At this juncture, the real estate sector in Pakistan, particularly in Karachi, presents significant investment opportunities, especially in areas like Bahria Town. Despite the economic challenges, the demand for quality housing and commercial spaces remains strong. The ongoing urbanisation, coupled with infrastructure development, has opened up avenues for both short-term gains and long-term growth. Investors who are willing to navigate the complexities of the market and take calculated risks can find lucrative opportunities, particularly in emerging sectors such as affordable housing and sustainable construction.
PAGE: Has the burgeoning construction cost left an adverse impact on investment in the real estate sector? Please elaborate:
Nadeem Ahmed: The rising construction costs have undoubtedly posed challenges to the real estate sector. Factors such as inflation, the depreciation of the Pakistani rupee, and increased prices of raw materials have led to higher project costs. This has affected the affordability of real estate for both developers and buyers. However, it has also prompted a shift towards more efficient building practices and the exploration of alternative materials and technologies. While some investors may be deterred by the higher costs, others are adapting by focusing on high-demand segments, such as mid-range housing, where there is still substantial market potential.
PAGE: What is your take on the taxation measures when it comes to investment in the real estate sector?
Nadeem Ahmed: Taxation policies have a significant impact on the real estate sector, influencing both investor behaviour and market dynamics. While recent measures aim to increase government revenue and curb speculative investment, they have also created some uncertainty in the market. The introduction of higher taxes on property transactions and the regularisation of previously undocumented assets can be seen as both a challenge and an opportunity. On one hand, these measures may slow down investment in the short term; on the other, they encourage transparency and long-term stability. For investors, understanding and adapting to these changes is crucial for maintaining profitability in the sector.
PAGE: What is your standpoint on investment opportunities five years down the line?
Nadeem Ahmed: Looking ahead, the real estate sector in Pakistan holds promising prospects over the next five years. With continued urban expansion and the government’s focus on infrastructure projects, the demand for residential, commercial, and industrial real estate is likely to grow. I anticipate that the sector will see increased adoption of technology, such as smart homes and sustainable building practices, which will attract both local and international investors.
Additionally, areas like affordable housing and mixed-use developments will become increasingly important. For those with a long-term vision, the next five years offer the potential for significant returns, particularly if they focus on sectors aligned with the country’s evolving economic and social landscape.