Current account surplus, record remittances, Rs 70 billion home-loans and amnesty to investment in real estate are set to bolster growth in demand and value of property in 2021.
Written by… Javed Mahmood
ISLAMABAD
Real estate sector in Pakistan is poised to witness a boom once again soon after Eidul-Azha holidays, experts said. Most of the key economic indicators are strong and expected to improve further in the financial year 2021-22, starting from 1st of July, leading to economic growth and stability in the country.
These days, Pakistan Stock Exchange (PSX) has crossed 48,500 points, reaching very close to the previous record high mark of 50,000 points and when stock market hits the highest benchmark, investors divert their money towards real estate, Saad Bin Naseer, Executive Director of a fin-tech company and a former CEO of a brokerage in Karachi told The Truth International on June 17, 2021.
Boom in the stock market triggers a boom in real estate and this traditional trend had often been experienced in Pakistan in the past, he said.
The federal government has extended tax-probe amnesty for investment in the real estate sector for another six months from July 2021, consequently, this opportunity will be ideal for investors who are keen to make investment in immovable property amid a strong possibility of a boom in this sector in the coming few weeks, he added.
A surplus current account, record growth in remittances to around $28 billion in 2020-21 as against $24 billion in 2019-20 and government’s incentives for real estate and corporate sectors in the new budget would certainly bolster growth in demand and value of property in Pakistan, he said.
Before the emergence of the third wave of coronavirus in Pakistan, the prices of real estate improved by 10 to 20 percent depending on location of property, said Hidayat Ali, CEO of Fazaia Estate in Lahore Cantt. Nevertheless, the third wave of the pandemic came in the way of further growth in the value of property in the country. He said that the government’s decision to give subsidized home-loans to thousands of people in the country have promoted growth in the real estate sector.
As the banks have already approved 70 billion rupees home-loans under the Prime Minister’s Home Financing Package at 6 percent markup, this factor would, indeed, ensure a boom in real estate in the country. The graph of coronavirus has also dropped significantly in the recent weeks and soon after Eid holidays, starting from 19th July 2021, the stakeholders are anticipating a robust growth and investment in property in Pakistan, Hidayat Ali said.
This is an ideal time to purchase property in the country as prices are still affordable. However, when the boom begins in this sector in coming weeks, prices of plots, homes, and commercial buildings will surge by 20 to 30 percent, depending on location and size of immovable property, he said.
CEO Fazaia Estate said that people should make investment in reliable real estate projects and stay away from dubious schemes which can ruin their investments. He was optimistic that investors who buy property at this time will be able to mop up 40 to 60 percent profit within a year or two because of positive developments taking place in this sector and the country as well. People who want to sell their property must wait for at least six months to get attractive prices, he said.