The real estate market of Pakistan plays important role in our economic growth. According to the latest stats World Bank estimate, the real estate sector in Pakistan is a 250 to 400 billion US dollars market. Previously, because of many factors like economic, financial, natural disaster and political challenges in Pakistan has not treated the country proficiently as it supposed to be in year 2019-2021. However, market experts have suggested that we might witness a great up shift in Real Estate Sector by 2022.
The Economy of Pakistan;
Reality check, IMF has given an alarming figure about the economy that it will shrink by 1.5% by end of 2021. However, the government showed in their 2021 budget was a lie or the actual truth? Because PTI claiming to have a growth in economy by 2.1% in near future. Covid-19 also has created serious economic backlogs and most certainly it’s still out there for nonspecific time. Unemployment is increasing with time, decreasing buying power of people. How can we expect Real Estate Investments in these economical unstable situations?
Pakistan’s GDP and Debts along;
According to last 2 decades economic reports, Pakistan increased its exports which reduced the debt against GDP by 50% in year 2003-04, however the figure risen up in 2013 by 65% debt. In following years, the debt in GDP ratio is 86% and continuously rising. So, let’s see where the price of real estate in Pakistan goes?
People with lesser buying power and ongoing Real Estate Business
The truth is that purchasing power of individual is declining, unemployment has made people to sell their properties and the worst side is Pakistan will soon face a significant reduce in remittance which people from aboard used to send in Pakistan, because UAE and other following countries has decided to reduce the salaries of employees by 40% due to pandemic and affected business activities. Prime Minister vision to build 1lac houses was depending on these foreign remittances now doubtful.
Real Estate and Real Market Conditions
Real Estate Activities have been paused due to pandemic situation. Labor force was not in a state to work on sight, social distancing was followed. But fortunately, Real Estate & Builders reported to the government that construction projects have risen ironically since 2020 and keeping the same pace in 2021. Great projects like Goldcrest Mall DHA, Indigo heights, and Downtown Mall Liberty and other upcoming projects are projecting an acceleration in real estate market.
This new real estate market boom has attracted so many investors as well as general public, who are shifting from residential houses to apartments. These projects of newly developed malls are attracting consumers and business investors are deliberately buying shops in these malls. pakdial.com offers advisory services for future investment purposes if you are also planning to invest in these new projects log on to our site and let us help you manage your savings.
Apart from these residential malls, DHA Multan and DHA Peshawar offers highly affordable plots, these affordable price caps are offered to general public due to recent decline in buying power of consumer. Peshawar and Multan DHA potentially seeing rise in property dealings.
Challenges in Real Estate
The major challenge these days Pakistan is facing in real estate market is the wide spread of unprofessional real estate dealers in market, promoting fraudulent and illegal possession of lands. Government should take serious action against these scammers and should help protect the rights of the people who are failed to claim their own lands.
There is a significant need of consolidated and collaborative efforts of developers and builders, because it takes a lot of time for the towns planners to complete the land mapping and timely update of any land changing activity.
The government needs to reduce the taxes on real estate transactions in 2020-21. Also, the government needs to create strict policies against those people who are non-tax payers. Overseas Pakistani face significant challenge in buying land in Pakistan not knowing the eligibility of agent and credibility of builder usually end up cheated. Similarly, the property dealers around Kartaspur (the sacred place for Sikh community) have looted so many foreign Sikh brothers in the name of fake plot files.
Shifts in the Real Estate Market 2021
Imran Khan after becoming Prime Minister of Pakistan, has made many new policies and rules for Pakistani real estate sector which are directly related to the Pakistani economy in many ways, such as:
- Many of these policies and taxations have been used to raise government tax revenue.
- To avoid false purchases in the real estate industry.
- As a result of these newly implemented rules and regulations by government, so many fraudulent projects under LDA are seized and now, these cheaters have started bashing against government creating barriers in advancement of real estate in Pakistan.
We can see that Economy of Pakistan is under Debt which already has surpassed the threshold level and can be neutralized if Real Estate flourishes, Government of Pakistan is keen to promote real estate projects and foreign investment. Prime Minister Imran Khan has decided to subsidize new projects in order to generate income as well as industrial growth since there are number of industries involved in real estate business. We can say that Pakistan Real Estate 2020-2022 suggests more investment opportunities in coming future. The investors are advised to purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough. If you are also planning to make an investment do visit our official website www.pakdial.com and without further ado, seize the best offer that suits your budget.