Real Estate Business in Pakistan and Its Economic Implications

The real estate Business has been one of the most attractive businesses in Pakistan during the last decade. This business minimizes the investment risk and offers high profit margin simultaneously. Therefore this business attracted lot of investment. However, this business has very important implications for several socio- economic indicators. The real estate business demands huge amount of investments and earns high profit margin than the ordinary investment, therefore leads to increased income inequality. The real estate investment reduces the velocity of money leading toward lower level of production. The attraction of industrial investment reduces because of this business. However, no scientific study on the consequences of real estate business exists for Pakistan. This study discusses the economic consequences of real estate business and proposes some reforms to reduce the undesirable consequences of this business.