KARACHI:
Pakistan’s expanding population and housing shortage pose significant challenges. The government lacks the funds and capacity to rapidly construct numerous houses and the private sector has struggled to build quickly or reduce housing costs. Drawing inspiration from the successful US approach during World War II, when a shortage of 3.5 million homes was addressed efficiently during President Truman’s tenure, Pakistan could replicate such low-cost strategies to effectively boost housing development in the country.
President Truman’s administration enacted legislation capping property rents at $80 per month, equivalent to $1,000 today. Additionally, they set the maximum price for new homes at $10,000, or $134,000 in today’s terms. Criminalising transactions exceeding these government-set prices prevented the private sector from selling expensive houses, prompting a shift towards constructing affordable homes. This move not only reduced construction costs but also incentivised individuals and businesses to invest in businesses rather than properties, resulting in job creation and increased economic activities for the country.
Establishing a comprehensive property database with standardised prices for both existing and new developments, implementing fixed property values, halting annual property value increases, setting regulated rental prices and enabling public access to the database can alleviate property scams, foster affordable housing, resolve family disputes over property and redirect wealth from property investment into sectors generating economic opportunities. This approach has the potential to eliminate various issues and streamline processes in Pakistan.
Shahryar Khan Baseer
Islamabad
Published in The Express Tribune, January 16th, 2024.
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