PAKISTAN REAL ESTATE SECTOR AND INVESTMENT ANALYSIS

High inflation in Pakistan shows that home prices are increasing at a higher rate. Yet, it is just a pretty illusion. Nationwide, these prices only increase by 5.05% each year per square ft. According to Pakistan's real estate experts , the prices have also dropped around 3.98% in the previous year, 2019.

HISTORY SUGGESTS THAT:

In March 2019, the inflation of Pakistan decreased from 9.4% to 8.2%. According to the Pakistan Bureau of Statistics (PBS), the statistics were at the highest level y November 2013. In different cities of Pakistan, the statistics are observed differently. As per historical revelations, such depression has also been seen in the past, but the economy proved to be better than that in coming out to be more progressive.

• In Karachi, the housing prices in Pakistan are, on average, PKR 13,158 per sq ft. in 2019, yet it went down by 2.89% due to inflation.
• In Lahore, the average housing prices were PKR 10.402 per sq. Ft. in 2019, yet, it increased by 4.62% due to inflation.

• In Islamabad, the prices per home were PKR 9,985 per sq. Ft. in 2019 and decreased in its real terms by 2.2%.

HOPES FROM THE GOVERNMENT

By Pakistan Tehreek e Insaf party led by Prime Minister Imran Khan, people have many hopes. He pledged to end corruption and bring out new economic reforms in the current times; the government is also coming up with different reforms. This means that the returns are good, leading to a better time for investing in the property. Through correct leadership, property prices can improve and come up as a lively investment avenue for investors.

After the government took its charge, Pakistan's housing market was observed to be improving with time as it became active again. People are also looking for ways through which they can reinvest. This has given them a sense of confidence so that it keeps growing.

TROUBLES SITUATION IN THE COUNTRY

Pakistan’s Prime Minister came up with different problems that were inherited by the country, such as:

• Poor security
• Semi controllable military
• Refugee problems and its conflict with Afghanistan
• Semi-independent political establishments
• Poor infrastructure
• Underinvestment historical pattern.

Still, it is forecasted that over time, Imran Khan will achieve excellence by its policies.

TAX AVOIDANCE WITH REAL ESTATE

Pakistan has a vast informal economy. The property market also accounts for huge portions from unreported gains due to inadequate regulatory oversight and low property valuations. These characteristics in the property market further emphasized to conceal the wealth and a source of income to minimize the tax liabilities.

In Pakistan, real estate is considered a commodity with speculative investment to buy property in bulk as it can later be turned in an exorbitant profit. Pakistan's real estate market has evolved in terms of being a vital source for economic growth in the country. This is further combined with the direct contribution from the construction and housing sector. The country's GDP also consistently grew higher by 9% over the past decade.

SHORTAGE OF AFFORDABLE HOUSING

Pakistan's housing deficit is estimated to be around 10 million units. This means that about one-third of 32 million households are not provided with standards by SBP. This is also increasing by 200,000 units every year.

There are further different reasons for Pakistan's housing problems. This means that there is non-availability of land and an entitlement as it regulates along with site development and limited financing. This shortage needs to be comprehended and presented as an immediate problem that needs to be solved. This housing crisis is present in both urban and rural developments.

WHAT OPTIONS CAN ONE AVAIL?

Karachi has multiple posh neighborhoods that are shifting to luxurious standards where apartments and villas are available. In these societies, a person can avail of excellent means. Several reputed builders and developers have shifted their focus in terms of developing the utmost gated communities.

REDBOX also provides you multiple options to avail of your homes in areas such as Scheme 45, Bahria Town property for sale, DHA, and much more. If you are not interested in residential property, we can assist you with commercial and industrial property options. These properties are available on flexible payment plans with the minimal down payment. 

In conclusion, the housing market has been increasing and decreasing over the years. However, it is still considered a beneficial mode of raising your savings. Property investment never goes out of scope when it comes to increasing profits. In Pakistan, there are multiple options for investment, and you can be assisted along the way with flexible payment plans and the best options.