Pakistan Real Estate is coming to light very quickly after the recent economic conditions due to Covid-19 and Locusts attack in 2020 in Pakistan were quite intense. Usually Pakistani people like to invest in the real estate market after saving up a little bit. But after the economic conditions of the last year, the buying power of the consumers has decreased a lot as people used up their savings in the pandemic due to loss of employment.
Due to the less demand of the real estate properties, people have quit investing in this market and due to that the prices also decreased. Many people sold their houses or other types of properties at lower prices than normal to avail the cash on hand as emergency funds.
Due to less demand and decrease in the prices, it is a wonderful opportunity for people with savings to invest more in this market. The consumers with savings are investing more and more at low rates to gain profit in the future at high rates. Due to this investment Pakistan real estate markets seems to be doing well.
Pakistan Real Estate Forecast 2021:
The Pakistan Real Estate Forecast 2021 seems to be going well as many other investment opportunities are being neglected due to their volatile nature. The Pakistan real estate forecast 2021 tells that it is going to be a year of boom for the real estate market due to many reasons. Some of the reasons that make real estate a desirable place to invest are discussed below:
- Unstable prices of Gold:
Many people like to invest in Gold as it serves many purposes. But recently, Gold is facing a very unstable market. Its prices can rise up to $2000 per ounce to start drifting downwards very soon. This trend has chased away many investors as they think it is not the time for a secure and safe investment in gold. Their investment in turn is going into the real estate growth in Pakistan.
- Stock Markets:
If you don’t have enough information about the shares, how to trade, or what the stock market as a whole, then it is suggested not to invest in the stock market. The market is very volatile and needs decisions in a few seconds whether to sell or buy more shares. This is not a secure and safe investment for many investors who are not willing to take excessive risks.
Due to this reason, many people have sold their shares to invest in the real estate market of Pakistan.
- Huge reduction in property Tax for 2021:
The government of Pakistan has lowered the interest rate and announced incentives for the investors and businessmen to mitigate the economic impact of the pandemic. It’s a relief package for the construction industry with the twofold aim of providing employment to daily wage earners, and spurring economic activity.
The package also includes additional incentives for builders and developers to build low-cost housing for the poor under the Naya Pakistan Housing Program. The tax rate will be fixed for the construction and the withholding tax will be waived off.
We can understand this fact by learning that cement dispatches in the first half of the 2021 financial year were 29M tons, up by 16% year-on-year from 25M tons in the first half of the 2020 financial year.
Real estate market for the economy of Pakistan:
The real estate market of Pakistan supports the economy of Pakistan to a large extent. Not only Pakistani investors see the potential in this market but the foreign investors are also fascinated and want to invest here.
One of the many main reasons for investment of foreign investors in Pakistani real estate is the stability in the social conditions of Pakistan and the safe environment. This was not the case a decade ago as the environment became very dangerous and people feared the unstable and volatile nature of political and economic environments.
Influence of CPEC on Pakistan’s real estate market and Pakistan’s economy:
From the start of CPEC, the economic conditions of Pakistan have started to become better. CPEC has turned out to be a pioneer of transformational change in Pakistan’s economy. It has transformed the real estate industry too since it has connected Gwadar seaport to Kashgar located in China. This one link will serve as a trade route for both bordering countries.
Owing to the enormous success of CPEC, Pakistan’s real estate market has definitely grasped the attention of investors, keen to look for an investment opportunity from all over the world. Due to this trend, there has been a notable rise in real estate projects and the prices are also increasing.
- Economic Growth
Economic growth is crucial in the real estate business. Economic growth is associated with the increasing prices of real estate. Due to CPEC, job opportunities will increase, and thus, the need for people buying or renting places near Gwadar will also increase. This will boost the real estate business.
- Chinese Immigration
CPEC is a joint economic venture between China and Pakistan, and therefore, many engineers are required from both the countries in order that they can be deployed in Gwadar to complete the project.
Accommodating engineers and other workers require the establishment of several small cities, towns, and mini-projects along the belt. This is great news for the real estate market.
The land of Gwadar can be used to build multiple housing societies with all the amenities. The Chinese entrance has greatly influenced rental returns in major cities and it is undeniably true that with time, this influx will increase.
The impact of Chinese immigrants can be seen in many societies of Pakistan. Blue world city is a housing society built in collaboration with Chinese engineers and architects who have designed the houses and apartments so that people can experience luxury and a lavish lifestyle.
- Infrastructure development
When the trade route is going to be completely established between Pakistan and China, then the requirement for proper road infrastructure also will arise. Road infrastructure increases the value of places that are around it. This will in turn influence the real estate market because the prices of homes, plots, and even rental apartments will increase.
Most societies are located on the outskirts of the major cities like Bahria Town in Lahore, Karachi, Multan, Islamabad, DHA etc. which can easily be connected to the CPEC. The CPEC has a great hand in raising the prices of properties in these. The plot of 1 kanal of PKR 1,000,000 can be easily converted into PKR 5,000,000 after being part of these societies.
It is contemplated that within the next twenty years, the population of Gwadar will rise to more than three million. So, in this respect, CPEC will become a necessity to cater to all the wants of the increased population. Gwadar City will be established in a gated community that will provide residential, commercial, entertainment, cultural, and educational environments under one roof. It should be noted that more than 50% of the area is set aside for open spaces.
Owing to the increase in the development in Gwadar, many schools, shopping malls, and hospitals are assumed to be built in the city. More than 1500 homes are going to be built across a locality of 3.5 million sq. ft. Moreover, with many immigrants arriving at Gwadar port, the worth of land will rise. This will, in turn, promote the real estate market.
We can see that the Pakistan Real Estate Forecast 2021 suggests investing more in this market as it promises a huge profit in the coming future. The investors should purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough.
Latest Property Rates in Bahria Town
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