Urban development is a double-edged weapon, presenting Pakistan with both opportunities and challenges. While urbanization promises economic development and higher living standards, the country’s rapid and unmanaged urban growth has given rise to a number of problems.

Unmanaged Urbanization and its Consequences:

Pakistan has an impressive urbanization rate, making it one of the most rapidly urbanizing nations in South Asia. However, this accelerated urbanization has exceeded the capacity of cities to provide essential services and infrastructure, resulting in an array of issues.

  • Poor Housing Quality and Affordability

One of the main obstacles is the poor quality and affordability of housing. The demand for urban accommodation is significantly greater than the supply, resulting in a severe shortage. The State Bank of Pakistan estimates that by 2035, seventy-eight percent of the country’s housing shortage will be concentrated in the five major cities. This housing crisis has a negative impact on the living conditions of urban residents, contributing to the spread of colonies and inadequate living spaces.

  • Water and Sanitation

Inadequate water and sanitation facilities constitute a second critical issue. In Pakistani cities, water scarcity is pervasive, with limited water supply hours and unsafe potable water. According to the Asian Development Bank, 90 percent of water distribution systems are unfit for human consumption, exacerbating health hazards. In addition, communal latrines and limited access to solid refuse management services exacerbate the sanitation problems.

  • Transportation

Transportation is an additional important factor to consider. The increasing urban population necessitates an effective public transportation system. However, cities in Pakistan, such as Karachi, lack adequate public transportation, resulting in congestion and a greater reliance on private transport. In addition to contributing to traffic congestion, corrupt practices in the granting of permits to private transit companies impose an economic burden.

  • Health

The plight of urban health is another pressing concern. While access to private healthcare is relatively improved, utilization of fundamental public health services remains low. Urban poor populations experience marginally superior health outcomes than their rural counterparts. Rapid urbanization-caused pollution is a significant contributor to poor health outcomes. Lack of pure water also contributes to a high mortality rate among children under the age of five.

  • Education

Although metropolitan areas have higher student enrollment and better learning results, about 10% of all children in Lahore, Karachi, and Peshawar are out of school. The private sector explains better schooling in cities, just as it does with healthcare. From 2001 to 2014, main enrollment in urban private schools increased from 25% to 40%. Furthermore, there appears to be a negative correlation between public education and city size. In small cities, about 35% of all children aged five to nine attend government schools. In major cities, the ratio falls to 22 percent. The lack of educational and health-care facilities in smaller cities drives people to larger cities, where service delivery becomes increasingly difficult as the metropolitan population expands.

Real Estate and City Planning:

Urban development challenges in Pakistan have a direct impact on the real estate market. The housing scarcity provides real estate developers with opportunities to provide affordable and high-quality housing solutions. However, the unrestricted growth has also resulted in the development of unplanned and substandard housing, which has contributed to the proliferation of settlements and the exploitation of vulnerable communities.

Inadequate infrastructure, particularly in the water and sanitation sectors, presents obstacles for real estate developers. It is crucial for the development of residential and commercial enterprises to provide sustainable and reliable access to these essential services. To address these issues, developers must incorporate efficient water management and sanitation systems.

The function of transportation infrastructure in shaping urban development and the real estate market is also significant. Investors and residents are equally attracted to regions with well-developed transportation networks. Developing mass transit systems and enhancing the transportation infrastructure can contribute to the expansion of urban real estate developments.

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