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Pakistani houses are getting smaller in size

Pakistani houses are getting smaller in size

Old houses in Pakistan are of large sizes. Low population density, vast land area and joint family culture were the major factors to promote the large size house construction. But things are different now, as Pakistani population is more than 220 million and prices of even small houses are sky-high. Due to many unsold large houses, now developers are forced to build small housing units due to good salability. Let’s discuss the factors that impact house size.

High population density

Population density is the number of people living on per square kilometer. Population density has great impact on house prices. Houses are smaller in the countries where population density is high like Japan, Hong Kong and Britain. On the other hand, houses are larger in the countries where population density is low like USA, Canada and Australia. High population density is one of the major reasons of shrinking house sizes in Pakistan.

High prices

House size has direct correlation with price. High property price means small size house, whereas low price means large size house. City houses are more expensive but are smaller in sizes, whereas rural houses are cheaper in price but larger in size. The other factor is the low sale volume of large houses which forces the developers to build small houses to bring prices at more affordable level. High inflation in Pakistan is another cause of shrinking house sizes.

High maintenance costs

Large houses have more maintenance cost and this cost is getting out of control due to declining currency value and rising wages. Due to high maintenance costs, people are moving to smaller properties. On the other hand, small houses have low maintenance costs and even can be maintained without maids. High maintenance cost is another factor of shirking houses in Pakistan.

Lifestyle changes

Lifestyle change has also direct impact on house size in Pakistan. In older days, people were used to live in joint family system. Multiple families in joint living need large house. But now people prefer privacy and love to live separately. Single family needs small house. This lifestyle shift is one of the major causes of shrinking house size in Pakistan.

Higher taxes on construction of large houses

In order to save the valuable land and discourage the large house size construction, government has imposed taxes on larger house construction. According to FBR Tax rates for map approval, one has to pay 20 PKR per SQ FT for 3 Marla houses, 40 PKR per SQ FT for 6 Marla houses and 70 PKR per SQ FT for houses larger than 6 Marla. Higher construction cost is also reducing the house size in Pakistan.

Small houses are good but do we really need shoe box houses?

Small houses have many advantages as they save valuable land for agricultural and commercial uses. But we don’t need shoe size house construction in Pakistan like 1.25 Marla. Room size and ventilation system is pathetic in these houses. We need new laws that ban construction of houses less than 2 Marla. Pakistan really needs housing revolution to provide decent living for citizens. We should construct apartment buildings that have flats of 1-4 bedrooms, so that everyone can get flat according to their requirements. This will save the valuable land and also bring the prices to more affordable level.

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(25) Comments

  1. YOUSUF LODHI

    on   said 

    IN KARACHI, PROPERTIES BEING REGISTERED AT D.C.OFFICES BY REGISTRAR ARE ASKING BUYERS TO PAY TAX UNDER INCOME TAX SECTION 236-W (WHICH IS RELATED TO TAX AMNESTY SCHEME). THIS IS QUITE CLEAR.

    IN HOUSING SOCIETIES LIKE GULSHAN E MAYMAR, WHERE INTERNAL SOCIETY TRANSFER IS DONE ON SALE/PURCHASE, TAX UNDER SECTION 236-W IS NOT ASKED TO BE PAID….AND PROPERTY TRANSFER PROCEDURE IS NORMALLY DONE. I WANT TO KNOW THAT HOW FBR WILL TRACE BUYERS AND ASK THEM TO PAY TAX UNDER SECTION 236-W ???? TILL TODATE THERE HAS BEEN NO NOTICE FROM FBR TO BUYER.

    I HAVE PURCHASED A PLOT AT GULSHAN E MAYMAR, KARACHI AND GOT IT TRANSFERRED WITHOUT PAYING TAX UNDER SECTION 236-W. BUT I HONESTLY WANT TO PAY IT. HOW SHALL I DO IT ??? I HAVE NOT RECEIVED ANY NOTICE FROM FBR

    PLEASE ADVICE

    Reply
    • YOUSUF LODHI
      When you buy property from societies you will not get letter from FBR but society.
      FBR writes letter to the society and society pays on your behalf
      Society will send you letter to pay them

      Reply
      • YOUSUF LODHI

        on   said 

        Surprisingly, societies are not aware of such procedure. I do not know when we will be able to manage our systems properly

        Reply
        • YOUSUF LODHI
          Societies are aware of everything
          Its just the system that takes time
          First FBR will send the letter to society
          Then society will write the buyer a letter
          Then buyer has to pay the due taxes

          Reply
  2. muhammad azeem uddin

    on   said 

    zahid ali .. being your knowledge based economic comments it is very bad luck for Pakistanis who have never listen this kind of words from electronic media. I want to see same kind of economic plan in Pakistan but unfortunately we have seen that every year government is borrowing USD 3 B for budget support and paying mark up.. and this year 2017-18 may be 4to5 B dollar. it means kindly understand where Pakistan will stand after 5 years. what ever say in television you can not hidden the truth.

    Reply
    • Zahid Ali
      China is the growth engine of world economy
      China wants to destroy dollar and EURO
      By controlling YUAN, China will crash western economies

      I have already described that property sector is a global market and is affected by other markets like inter linked
      When real estate is down in west, its also down in Pakistan.
      Crash of 2008 is before us.

      Reply
      • Zahid Ali

        on   said 

        What I understand is that China Government is facing some problem due to heavy capital outflows, that is why China started crackdown.
        I am not sure whether China executing this crackdown to destroy dollar and euro or to save foreign exchange reserves to stabilize Yuan.
        From the graph, it is evident that Yuan is loosing its value against dollar then how dollar can be destroyed.

        Reply
        • Zahid Ali
          All these measures are to bring back gold fix or currency backed by gold
          This is why China has accumulated lot of gold and has bought gold vaults around the globe
          China knows that USA has no gold reserves and gold backed currency will totally destroy dollar ad other reserve currencies
          China and Russia have direct deals with other nations to not use dollar as mutual trade or to by pass dollar

          GOLD FIX / GOLD BACK CURRENCY / SHIFT AWAY FROM DOLLAR will happen in April 2017 as indicated by IMF.

          Reply
  3. muhammad azeem uddin

    on   said 

    everybody is being complaning about the abnormal prices. but I am sorry that the governing people is not understanding about the people problem. it seems that internally all they are ONE.

    every one here understanding that black money influence the market and creating problem who are homeless but the people who have power to CRASH IT IS SLEEPING.

    now a common man what should be do. ONLY PRAY TO GOD.

    Reply
  4. Manzil ali

    on   said 

    Impossible to buy home or flat in Karachi. Pakistan property sector is hijacked by real estate mafia and black money. We common people haveno future in this beautiful country. Sorry but its the bitter truth. Allah Pakistan our Pakistanioon kue madad kar

    Reply
  5. Saba naseem

    on   said 

    Small houses in good locality of Karachi are 1.5 to 2 crore like 120 yards. Its look like that time of large house is gone.

    Reply
  6. Sindhi bhai

    on   said 

    House size chote hain ab
    Ham pehle 2000 yards ke ghar main rehte the lakin ab tu 120 yrds bhe nahin lye sakta ko. Lakain agar black money ho tu phir kia bat ha.
    Mere dost kehte hain ke ab rizk e halal se Pakistan main ghar nahin at. Prices high hain

    Reply

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