Potential of Pakistan’s Real estate market
Real estate sector of Pakistan is really dynamic and is in transition, especially during the current pandemic. A number of lucrative opportunities are available in this sector. That’s why there is huge inflow of investors toward this industry. Real estate market. There are few significant political as well as economic indicators that are highly impacting this market in a positive way. Why there is high time to invest in the realty sector of Pakistan, it is evident from the following indicators:
A continuous rise in inflation
There is a continuous rise in the prices of houses and property across the Pakistan. One of the factors is continuous rise in the inflation rates. During first quarter of 2019, there has been an increase of 5.05% in the overall value of plots as well as in prices of houses. Though, nationwide housing prices rose by 0.95% when inflation rate in the country was 9.4%. These statistics are collected from Pakistan’s largest property portal Zameen.com.
Real estate market Reduction in interest rate
Interest rate is falling worldwide. A fall in interest rate is always a bad omen for ones who want to earn good returns by placing their money in banks. That’s why many people are drawing out money from the bank. All of this money is being channeled toward the realty sector of Pakistan.
Reforms in the real estate sector of Pakistan
New government in Pakistan has introduced a number of regulations for mainstreaming the realty sector of Pakistan. Due to these regulations, safety, security and ease of investment in this sector have improved. Ergo, realty sector is capturing more investors because of such transition. These reforms are aimed at ensuring transparency as well as documenting the black economy. Moreover, these reforms are incentivizing the tax filers regarding tax.
Real estate market A booming demand for housing
As per report of SBP, there is demand of 10 million houses in Pakistan. This is huge indeed. It implies that Pakistan is at verge of housing crisis, if not dealt on time. Further, due to rising population, the demand for housing is increasing day by day. For this reason, it is safe to invest in the realty sector of Pakistan for earning handsome returns.
Demand for vertical building is gaining popularity
Apartment living is affordable as compared to living in houses. In addition, as cities are being highly congested so sky high buildings are need of time. Therefore, there is transition from houses toward vertical living in Pakistan. As per a survey, there has been 30% rise in apartment demand during last 5 years in the major cities of Pakistan. Also the current government is encouraging projects related to vertical constructions. So, it has given additional momentum to apartment living.
Attractive and magnificent incentives offered by the government
Covid 19 has halted overall economic activity. To inject the wave of activity, the government of Pakistan has offered special package for this sector. PM’s package for real estate is a scheme that has introduced major transitional trends in this sector. Major benefits for investor include:
- No question about the Income source
- A lower tax imposition on activities related to construction
- Zero capital gain tax
- 2% reduction in sales tax