The economic crunch that has shaken the global economy in 2008, also created upheaval in real estate sectors of most of the countries around the world. However, Pakistan realty sector sailed through this hard time safely because majority of transactions are backed by hard cash. Pakistan real estate experts consider it a bigger success while comparing the sector’s performance with other countries.
It is worth noting that Pakistan realty market has attracted hefty investment worth billions of rupees in the last few years due to attractive returns on investment. These returns have become possible due to differences in demand-supply, speculative trading in the real estate sector and the sector’s ability of being a safe haven for tax evaders. However, the success story was stalled in 2016, when government brought in new regulations.
Despite this major turmoil, the sector succeeded in getting concession from the government and the market started bouncing back at the end of the year. Moreover, overseas Pakistanis also showed their interest in homeland due to improving security situation and other macroeconomic indicators that played a key role in fuelling the property boom.
Despite continuous growth in the realty sector since 2013, real estate developers believe the market is all set to head north in the current scenario. “Pakistan is a virgin market and there are numerous business opportunities here. Tell me which sector is not growing in Pakistan?” asked Association of Builders and Developers of Pakistan (ABAD) Senior Vice Chairman Muhammad Hassan Bakshi. “This is a rare situation when world markets are in turmoil and Pakistan’s economy is going from strength to strength.”
It is also observed that investors including builders and developers were returning to the country because of current high returns in the local market. International investors are pulling out of other countries’ property markets and bringing money back to their homeland due to high returns. “Recent harsh policies of (US President) Trump will further encourage Pakistani investors to shift their money to local markets because of eye-catching returns. This is a blessing in disguise and our government should encourage these investments.”
Currently, Pakistani businesses are banking on China-Pakistan Economic Corridor (CPEC) projects worth around $57 billion. Experts say massive Chinese trust in Pakistan is attracting overseas Pakistanis along with foreign investors. It is observed that Chinese companies are buying commercial properties for industrial set-up in Pakistan. Therefore, it is speculated that if the situation prevails the Chinese nationals may soon be able to buy residential properties in Pakistan and resultantly, the property market will further fly high as prices will shoot up.
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