[alex_smart]

I don't know specifically about Pakistan, but at least in India the returns on real estate are very good, especially in second-tier cities.

So many people, only so much land. Rising incomes and steady urbanization. Yada yada yada.

Also, part of it is just culture. I know that people in my parents' generation are not very comfortable investing in the stock market. Real estate is seen as a safe investment with a steady, if low, rental yield.