The housing and construction sector accounts for 2.53 percent (Rs 380 billion) of Pakistan's GDP and employs 7.61 percent of the workforce. The industry is expected to grow in the coming years due to several factors including migration from small towns to cities, the China-Pakistan economic corridor and ongoing restructuring efforts.
However, the housing sector faces major challenges. Pakistan needs almost 700,000 housing units annually. Demand is growing by around 3 percent annually. Only about half of this need is met. Newly constructed units often face quality, maintenance and affordability issues.
These issues not only affect homeowners, but also allow market forces to manipulate supply and demand, ultimately affecting both the quality and prices of homes. As a result, many home buyers find themselves in a difficult position, paying significant amounts for homes that do not meet expected quality standards.
In addition to market exploitation, concerns are growing about companies' capacity and ability to deliver optimal results. Over the years, our construction methods have become outdated because we have not used modern technology to improve key processes. There has been little innovation in construction practices, particularly in the use of environmentally friendly and sustainable materials that could help us transition to greener construction.
It is important to note that many countries around the world face similar challenges. The global construction industry is characterized as traditional, project-oriented, fragmented and highly complex. However, developed markets such as Hong Kong SAR, Singapore and Dubai have achieved optimal performance through innovation, technology adoption and collaboration.
The McKinsey report on the future of construction highlighted key areas where real estate and construction companies need to learn and improve. The report recommended an industrialized approach to construction; the introduction of new materials; Digitalization of products and processes; and promoting new talent for modern construction projects.
Although the report was published several years ago, its findings remain highly relevant in the Pakistani context. In a recent presentation for the second Sindh Expo in Hyderabad, I suggested the following directions for the transformation of our industry:
In addition to market exploitation, concerns are growing about companies' capacity and ability to deliver optimal results. Over the years, our construction methods have become outdated because we have not resorted to modern technologies.
Structured approach to the project life cycle: Although public sector projects use planning commission forms for project planning and implementation, these forms rarely take into account the post-construction management of facilities. The private sector also reflects this shortcoming. The challenge lies not in the use of these forms, but in adopting a structured approach that takes into account the entire project life cycle, from early planning to demolition, with facilities management considered an essential step.
Digital frame: Create a digital design, construction and facility management framework that leverages Building Information Modeling along with BIM execution plans and ISO 19650 to facilitate information sharing between project stakeholders. BIM improves visualization, collision detection and stakeholder communication, ultimately reducing rework and delays.
Modular design and 3D printing: Exploring modular construction and 3D printing can revolutionize home building. By manufacturing components in factories and assembling them on site, we can reduce construction time and improve quality control. The modular design can reduce construction time by up to 50 percent because the components are manufactured at the same time as site preparation.
Green and light materials: To encourage green building practices, emphasize using local, sustainable materials. This includes exploring ways to reduce transportation costs and reduce energy consumption. Such materials can significantly reduce the carbon footprint of construction.
Training new talents: Investing in training the next generation of construction professionals is critical to driving innovation in the industry. This includes promoting STEM (science, technology, engineering and mathematics) education and vocational training across Pakistan.
These strategies can help transform Pakistan’s housing and construction landscape, making it more resilient, efficient and sustainable. Integrating modern practices, educational initiatives and a focus on sustainability can help address current challenges and position the industry for growth and innovation.
The author is an Assistant Professor of Construction Management and Quantity Surveying at Bond University, Gold Coast, Australia and a registered architect with the Pakistan Council of Architects and Town Planners.