After the current economic problems in Pakistan resulting from Covid-19 and the Locust invasion in 2020, Pakistan Property Development is swiftly gaining traction. Pakistanis, on the whole, prefer to invest in real estate upon saving for a while. However, due to the economic difficulties of the previous year, consumers’ purchasing power has reduced significantly, as people burned up their reserves in the epidemic due to job loss.
Investors have stopped investing in real estate assets. Due to the lower demand, and prices have fallen. Many people sell their homes or other sorts of possessions for less than market value to have cash on hand for emergencies. It is a fantastic time for anyone with money to increase their investments in this industry. Pakistan’s property market appears to do quite well as a result of this investment.
Pakistan’s Real Estate Forecast or Market Situation in 2021
Several other investment options are being overlooked owing to their volatile character. Thus the Pakistan Property Investment Forecast appears to be doing well especially new under developing cities like capital smart city Islamabad. According to the Pakistan Property sector future, the real estate sector in Pakistan will flourish this year for various reasons. The following are some of the points that make property investment a good investment:
- Gold Prices Are Unstable:
Many people plan to hold in gold since they can use it for a variety of purposes. However, the gold market has recently become quite volatile. Its prices could increase to $2000 each ounce before beginning to fall rapidly. Many investors have been turned off by this trend, believing that now is not the right time to make a solid and safe transaction in gold. As a result of their investment, Pakistan’s real estate market is growing.
- Stock Markets:
Experts recommend that you do not invest in stocks if you do not even have sufficient knowledge about the stocks, how to operate, or the equity markets as a whole. The stock market is highly volatile, necessitating split-second judgments about whether to trade more shares. For several investors who may not be ready to incur excessive risks, this is not a stable and comfortable investment. As a result, many investors have sold their stocks to invest in Pakistan’s property market.
- Significant Decrease in Property Tax for 2021
To reduce the economic effect of the epidemic, Pakistan’s government has slashed interest rates and introduced incentives for investors and businesspeople. It’s a stimulus plan for the construction sector, with the dual goals of generating jobs for low-wage workers and boosting economic activity. Together under Naya Pakistan Housing Program, the program also contains extra benefits for property developers to provide low-cost housing for the needy. The construction tax rate is set, as well as the government will indeed eliminate the withholding tax.
- Pakistan’s Economy’s Real Estate Market:
Pakistan’s real estate market contributes significantly to the country’s economy. Foreign investors and Pakistani investors are intrigued by the market’s potential and wish to invest here. Foreign investors invest in the Pakistani housing market for various reasons, one of which is the country’s socioeconomic stability and supportive environment. This was not the case sometime back when the situation had become quite dangerous. People dreaded the political and economic situations, which were both unstable and turbulent.
Impact of CPEC on Pakistan’s Property Market & Pakistan’s Economy:
Pakistan’s economic prospects have improved since the beginning of the CPEC. CPEC has shown to be a forerunner of economic development in Pakistan. Since connecting Gwadar ports to Kashgar, China has also altered the real estate industry. Both surrounding countries will use this single link as a trading channel.
- The CPEC’s Impact on Pakistan’s Property Market
As a result of CPEC’s colossal success, Pakistan’s property market has snatched the focus of investors from all around the world looking for a lucrative investment opportunity. As a result of this tendency, the number of real estate developments has increased significantly, as have the prices.
- Economic Development:
In the real estate industry, economic growth is critical. The price of real estate rises in tandem with economic growth. As a result of CPEC, job possibilities will expand, as will the demand for people to buy or rent properties near Gwadar. This will help the real estate industry.
- Chinese Immigration
Because CPEC is a strategic venture endeavour involving China and Pakistan, numerous engineers from both nations are needed to construct the project in Gwadar. The development of multiple minor cities, villages along the belt is required to accommodate engineers and other workers. This is happy news for the property market. Blue World City is a residential society created in conjunction with Chinese architects and engineers who developed apartments and houses to allow residents to live in luxury.
- Development of Infrastructure
When the commerce route linking Pakistan and China is fully established, there will be a need for good road infrastructure. Road infrastructure raises the value of the surrounding area. This will impact the property market because home, land, and even rental unit prices would rise. The majority of the societies are situated on the fringes of major cities such as Bahria Town in Lahore. Others are conveniently accessible by the CPEC.
We expect that Gwadar’s population will grow to more than three million people over the next 20 years. As a result, CPEC would become a requirement to meet all of the needs of the growing population. We expect the development of numerous institutions, retail malls, and healthcare facilities in Gwadar due to the city’s growing development. The project will erect more than 1500 residences across a 3.5 million square foot area. Furthermore, the value of land will rise due to the large number of immigrants entering Gwadar port. As a result, the property market will benefit.
M Junaid Lead Writer, Content Marketer at Sigma Properties | Nova City Islamabad, A writer by Day and reader by night.