Naya Pakistan Housing Scheme: Challenges and Prospects
The Naya Pakistan Housing Scheme is based on the promise of Pakistan’s PM Imran Khan. In this promise, he assured the people of Pakistan that almost 50Lac homes would be built for low-income citizens living in Pakistan.
However, the broader aim was to add a significant number of housing sets into the real estate industry of Pakistan in order to meet the demands in the markets. As a result of this, the gap between supply and demand is expected to be bridged.
The Challenge of Affordability
From the very beginning, the aim of constructing new homes under this scheme was to make sure that low-income or middle-income citizens of Pakistan can get access to good quality housing at affordable rates. However, many regarded this aim to be quite farfetched owning to the increasing rates of construction material due to rise in dollar rates over the past few years.
This aspect was therefore considered to a major challenge for the government, and many would say that they have lived up to the expectations.
The Naya Pakistan Housing Scheme Apartments
Once the government realized that housing societies were essentially taking over agriculture land in many parts of Pakistan, they decided to build apartments instead. This provided the government with a low-cost option that could provide low-income families with appropriate facilities in different parts of the country.
The government has decided to construct building in different parts of the country, starting from the capital. An announcement came from the Federal Government Employees Housing Authority (FGEHA) that around 12, 000 flats and apartments would be developed in multiple cities at good location under the NPHP program. Other than providing citizens will a low-cost housing option, this program is also expected to produce jobs in the market.
Supply and Demand in Real Estate
It is an aspect of fundamental understanding that rates of a commodity is higher in case of a shortage. Once there is a gap between the supply and demand, the rates of property are expected to increase, making even the 5 Marla homes for sale out of reach of the low-income citizens. However, with the introduction of this Naya Pakistan Housing Scheme, the overall demand and supply gap is expected to decrease. Consequently, the costs are likely to stabilize and become affordable as a result. Furthermore, the government has also announced that the overall rates offered to the low-income families would be significantly lower than the asking price in the market.
List of Naya Pakistan Housing Project Apartment (NPHP)
The List of Apartment Projects being built under the Naya Pakistan Housing Project (NPHP) are as follows:
- Chakala Scheme 3 (Chaklala Heights Rawalpindi).
- Skyline Apartments (FGEHA Islamabad).
- Mauve Area (Kashmir Avenue Apartments).
- Indus Vista (FGEHA)- (B-17 Islamabad)
- Lifestyle Residency (FGEHA Bedian Road, Lahore)
As this program further process, real estate experts at Deal and Deals (Pvt.) Ltd. have also predicted multiple opportunities. For instance, the government in future might collaborate with housing societies such as Capital Smart City Islamabad and Blue World City Islamabad. By an allocating a certain stretch of land, affordable housing can be provided to low-income citizens at best rates.
Allocation According to Basic Pay Scale (BPS)
The government has promised the the highest number of allocation of these apartments would be given to the lowest income employees. Such employees are not able to afford the high prices of real estate in the market. Currently, over 10,000 apartments have been allocated, and almost 34% of the allocation has been given to the low income employees working in the BPS range 1-9. This figure shows that the motive of this housing society has been met, and the low income citizens are benefitting. Furthermore, around 26% of the allocation is given to Basic Pay Scale (BPS) range of 10-17.