Real estate is revealed as an excellent resource for the development of any nation’s economy. Pakistan has had a functioning impact in the real estate industry since 2017. According to the research 2020 is considered to be the best year for real estate in Pakistan. Lands and properties in Pakistan have gone through basic and policy driven issues, and therefore, the progress has stopped. Ultimately, it has become a total wreck for the investors as they are getting no such beneficial investments. In this lockdown, where everything went down to earth, the government needs to work smart accordingly.
Alongside that, Investors and brokers also have confused with the government policies. On the other hand, if you find properties in Pakistan especially in capital i.e. Islamabad worth $300-$400 billion, it will hold no criticality. To the extent the financial, and political angles are related with the real estate industry, Pakistan will suffocate.
According to the World Bank, nearly 60 to 70 percent of a country’s total wealth is stored in its real estate assets. However, if we talk about real estate in Pakistan, the government has still not revealed its wild card. It will be a difficult situation. In any case, things are stale for the present, which is a better sign, and we can anticipate growth in the coming years gradually.
There has been a slowdown in real estate since 2017 because of a weird blend of political instability, tax policy turmoil and uncertainty in economic and financial policies. The government has built up some game-changing approaches that affected properties’ rates and economic worth, some aspects were:
- Bans were enforced on non-filers to buy a property worth more than Rs. 5 million.
- Non-filers need to register with the federal board of revenue (FBR) before investing in a property.
- The government tried to impose the investors’ tax factor, which sums up as no incentives for them. FBR’s strict regulation on banking transactions of non-filers, levying of high taxes on transfers of property discouraged the investors to put their money in the sector in 2018-19.
In spite of the gloomy outlook of the real sector, there are powerful facts that indicate that the 2020 year will be encouraging for the investors, especially for the “Overseas Pakistanis” said by Prime Minister of Pakistan.
The growth of real estate will increase in the up-coming years because Pakistan is promoting the tourism. Inbound tourism in Pakistan has witnessed a marked increase of over 70 percent during the year 2019 as compared to corresponding year, mainly due to multiple initiatives, specially enhanced security condition. The number of foreigners who visited Pakistan in 2018 on tourist visas stands at 17,823, which was 10,476 in 2017,” according to one report.
Immense growth of the tourism industry will compel foreigners to purchase properties in Pakistan, especially in Lahore., which is a notable spot to visit for tourists. You can look at the most latest lands and properties on thechampion.pk.
Taking everything into account, we have not yet shown up at the height of dominancy by government policies in the real estate sector. The government is planning the structure of real estate after the pandemic chaotic, there is still a great vision about real estate growth in Pakistan.
Published in The Balochistan Point on December 17, 2020