DETERMINANTS OF HOUSE PRICES IN PAKISTAN

Abstract

This study investigates the determinants of house prices in Pakistan with a focus on house characteristics, neighborhood attributes, and location-specific factors. Using secondary data from the Household Budget Survey (2014–2019) and applying a hedonic price model, the research analyzes how structural and contextual features affect housing values. Descriptive statistics, correlation, and regression analyses reveal that house characteristics exert the strongest influence on property prices, followed by location and neighborhood characteristics. The model explains 27% of the variation in house prices, indicating that structural, locational, and community-level variables play a meaningful but partial role in shaping property values. The findings align with international studies that emphasize the localized and multifactorial nature of housing markets. This study underscores the importance for policymakers, urban planners, and real estate stakeholders to integrate structural and environmental factors into housing policies, particularly in rapidly urbanizing economies like Pakistan. By addressing these determinants, sustainable housing affordability and equitable urban growth can be better achieved.