The real estate business is a growing industry and spends about 5.2 billion dollars on construction projects and this has to be an important factor of growth in the real estate industry. Real estate in Pakistan always have been on the rise as it enjoys interest from both the investors and government, as well as, allowed a major increase in GDP for the economy. Still, it failed to change the lives of people with low socioeconomic status and a lot of people are surviving without food and shelter, let alone basic facilities. Let’s have a look at the trends of the real estate industry for the year 2022.
Reasons to invest in the Pakistani real estate market
Due to a significant decrease in property prices in Pakistan, it has become one of the leading opportunities for people to invest in the real estate sector. The investors are gaining more and more assets at low rates to make a profit in the future when prices will be higher. Why this is the right time to invest in the real estate industry? Keep on reading below and you will get information on why it is the talk of the town. Unlike other investment opportunities, the real estate sector is not volatile at the moment.
- Unstable prices of Gold
Recently, the gold market is facing major setbacks and continuous fluctuation in the market. It increases up to $2000 per ounce but then seems to drift downwards on the growth chart real soon. This fluctuation for many investors is said to be not the right time for a secure investment.
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- Stock markets
Stop right there! If you are not aware of how the stock market works, trade and shares. It is advisable to avoid investing in the stock market. As it is also very volatile and requires abrupt decisions whether to purchase or sell the shares.
- Reduction in property tax
To mitigate the impact of a pandemic on the economy, the government of Pakistan has lowered the interest rate and announced incentives for investors and businessmen. It is also a kind of relief package in order to spur economic activity for the construction industry with a hope to employ daily wagers.
- Influence of CPEC on Pakistan’s real estate industry
The economic conditions of Pakistan have started to become better ever since CPEC started. It brought transformational changes in the economy, as well as, to Pakistan’s real estate market also grasped investors’ attention. Because of this, there is a significant increase in projects.
Challenges for the real estate market
There have been several reforms ever since the PTI government took charge of the country which include: to raise government tax revenues that inhibit purchases in the sector. As a result, less investment has been seen in real estate in Pakistan causing the economy to crumble.
The real estate industry is authorized to incompetent and inexperienced people who fail to direct people further and leads to a big-time scam. It’s high time that federal and provincial authorities need to protect the rights of investors, as well as, manage the construction of residential societies by real estate contractors as it takes years to complete the procedure. This step will compel overseas Pakistanis to invest in their homeland. The government of Pakistan needs to put forth a mature approach and impose transparent yet strict rules and regulations to mitigate people from investing in offshore companies.