According to Secretary-General Antonio Guterres, he has “never seen climate carnage” on such a scale, blaming wealthier countries for contributing to the devastation.
Indicators of the socioeconomic and educational status of the flood-affected areas continuously lagged behind those of the unaffected areas. The destruction of their infrastructure and sources of income will cause them to fall further behind. The majority of those most badly impacted were small farmers and unskilled workers. They are among Pakistan’s most vulnerable groups and nearly all of them are living at or below the poverty line.
Effect of Flood On Real Estate Sector
Damage and Needs Summary by Sector Housing
In Sindh and Balochistan, the floods damaged 998,376 dwelling units completely or in part. A total of 484,093 homes have sustained partial damage, while 514,283 homes have likely been completely destroyed. With 99 percent of the entire housing stock impacted, Sindh province has sustained the vast majority of housing stock damage.
In Sindh, out of the 992,679 affected homes, 512,462 [493,606 Kacha homes and 18,856 pucca homes] have been entirely demolished, while the remaining 480,217 [403,790 Kacha homes and 76,427 pucca homes] have been partially destroyed. There have been 5,697 Kacha dwellings estimated to have been damaged in Balochistan, 1,827 of which have been completely destroyed.
There have been instances where walls have collapsed and cracked as a result of the ground subsiding beneath soggy foundations. The damage has frequently been severe and irreversible for kacha structures.
The cost of fully demolished and partially damaged homes is estimated to be Rs. 85,465 million (US$ 982.4 million). The anticipated cost of reconstruction (for both entirely destroyed and partially damaged homes) is Rs. 91,510 million (US$ 1051.8 million).
Economic, policy, and planning scholars have long been interested in the link between perceived hazard risk and real estate values in Pakistan.
Although it might seem reasonable for prices to decline after a natural disaster, like a flood, such price reductions reveal a lack of sufficient risk knowledge among the real estate-buying public before the event. Natural catastrophes should, in theory, have no impact on real estate values where potential homebuyers have perfect knowledge about hazard risk and act rationally because such dangers should have already been priced into market pricing.
Recent flooding has caused serious issues for the real estate industry. The government of Pakistan is trying its best to overcome this issue as soon as possible.