In 2017 the investments started drying up after the implementation of Government tax scheme and it was a great shift for Pakistani real estate which was booming in early 2016. Due to this shift, all the investors have gone skeptic and now in 2018, they are concerned about the conduct of the real estate market. Actually, this concern is valid and the property pioneers are predicting that the downfall will be worse than that of 2004-5. Following is an overview of the current situation of the Pakistan real estate market:
Prediction of stagnation:
From 2017 to 2018 the most affected properties are the luxury properties which have prices over 2 crores. The downfall in the prices of this category has been estimated to be 20%. Due to the dilly delaying, many underdeveloped are facing decline. So, now investors are inclined towards on-ground projects.
Properties less affected the real estate crunch:
The 5-3 Marla properties (cycle under 5 lack), well-populated and already developed areas are less affected by this trend. Although stagnation was observed in this category too but the effects were minimum and those are subsiding.
How falling Prices become profitable?
Firstly, the aforementioned downfall has been received as a warning by both developers and investors. As a resultant, the developers are exerting to deliver the projects effectively and efficiently. So, the developmental projects have jumped onto a speedy track but the good news is that the quality of the projects is not compromised for the sake of keeping the investors captivated.
Secondly, many average income investors are showing interest in the upcoming projects due to the downfall in the prices and as a result, the sales of apartments and flats have been increased. According to the realtors, this positive change is due to the fact that the phenomenon of easy installments has made investments easy for a salaried person.
Opting for emerging investment opportunity:
Being an opportunist is the hallmark of a good investor. This quality enables the investor to see and find good in every situation. Unlike others, the aforementioned category of investors will perceive the downfall in the prices as an opportunity to invest in more and more properties in which they see the potential. For instance, such investors are turning towards following up-and-coming investments destination:
- Gawadar, Bahria Town Lahore
- Islamabad new airport
- Bahria Town Lahore
- Bahria Town Karachi
- DHA
See how the wind blows:
Although no change is expected or predicted in the Pakistan real market in 2018 but there is a hope that the prices are going to get sustained in the near-term times. So, there is no need to rush into selling your properties, at the low price, which are facing the decline in the prices. We suggest you to wait for some 5-6 months and see how the wind blows.
The purpose of getting you acquainted with the current Pakistani real estate market trend is to enable and empower you as an investor. Hopefully, this insight will be fruitful for you. Good luck!
