The importance of the real estate sector as a catalyst for growth can be gauged from the fact that it is the second largest employer next only to agriculture. This is because of the chain of backward and forward linkages that the sector has with the other sectors of the economy, especially with the housing and construction sector.
About 250 ancillary industries, such as cement, steel, brick, timber and building materials, are dependent on the real estate industry. A unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times. Various research houses indicate that the asset market size in Pakistan is $700 billion, and the highest share of that is in real estate. It is estimates that if one million people are living in houses built on areas of 500 square yards for each house, the total value of those assets comes to around $300 billion which is more than the total annual GDP.