KARACHI — Pakistan’s housing affordability index has fallen to 0.4 from 0.5, according to the World Population Review, indicating reduced affordability due to rising property prices, higher mortgage rates, and an increasing shortage of housing units.
The report places Pakistan below regional peers, with Bangladesh at 0.7 and India at 0.8. The World Bank estimates a housing shortfall of around 12 million units in Pakistan.
Recent floods in northern Pakistan, Khyber Pakhtunkhwa, and Punjab have displaced over 2.5 million people and destroyed thousands of homes and businesses, exacerbating the affordability challenge for low-income families.
Experts, including Ibrahim Amin of TriStar International, have called for region-specific strategies, new city developments in safer areas, and large-scale, low-cost housing programmes near CPEC routes or industrial zones to address affordability and urban congestion.
The State Bank of Pakistan has introduced a subsidised markup scheme under the Mera Ghar Mera Ashiana programme, offering financing up to Rs3.5 million at a maximum interest rate of 8%. Punjab has also launched a zero-markup initiative targeting low-income groups.
Real estate developer Monis Ikhlas suggested increasing the financing limit to Rs10 million to attract middle-income earners, entrepreneurs, and overseas Pakistanis, noting that broader financing could improve the affordability index and stimulate growth in construction and allied sectors.
