We want to share with you market situation in real estate of Pakistan. It is also important sector of economy. Normally Pakistan spares about USD 5 billion in the field of construction in yearly basis. Its construction output account is of 2pc of GDP. Now acceleration rate in country needs an effective management and urban planning in Real estate of Pakistan.
You will see different variations in trends if you will observe it on yearly basis. A bullish trend is observed fastest and growing rate in organization. These details include the recent scene of real estate of Pakistan. You can see constant decline and fall in prices in some area of all cities. Now property transactions are reported as lower as per record. After amendments in property valuation to become more visible, especially in 3rd quarter it is noted that it is spread all over. Now demand in real estate market is diminish and people are speculating with no interest for investing so a slump is seen in real estate business.
Thus, amendments are made to evaluate the property that is declared that you can’t evaluate the property for long time. It is also declared that decreasing the investment flows for overseas Pakistani. They’re also in decline situation. If you see uncertain environment that shows uncertain situation of market, it is predictable to exacerbate the outlook of Pakistan. As per survey it is shown that amendments in tax ordinance- 2001, approximate 16 to 18,000 developers have finished operation in market and moved to find other options to seek investment opportunities.
Investors are also used to taking to wait and need to check policies and interest of investors that faces threat. A common buyer is also vigilant in selling & buying property. The devolution by Govt. to federal boards of revenue to assess the prices of land and stuck with land’s valuation. Taxes have no effect in real estate sector and changed with condition. These prices are appreciated in USA, Europe, Australia and Canada with taxes. Federal board of revenue has banned black money in market.
In Pakistan, you will see top housing sciences for instance, in DHA; you will see decrease in rate with respect to other high priced societies. As long term economic slump in market it is not good to invest cash amount. It is due to crash in real estate sector. It is also expected that cost in this sector is expected to bottom in next year. It will change the outlook of real estate sector. The era of excessive cost increase in property is finished with houses now becoming affordable now. As per income ratio, prices are also in affordable range for homes sector. Now prices are decreasing. Good time for investment.
You need to consider uncertainty in real estate market. It is not evitable that a Govt. chalks out sound mechanism to change the predominant crises in this sector. This market is choosing plunge in this year, it is good news for financial and bank institution. In 2016, loans to construction industry is doubled from PKR 14 BN to RS 32 BN-