How the Year 2018 Going to Be for Real Estate Market in Pakistan?
The real estate market in Pakistan has never been steady – there have been many ups and downs over the years.
In early 2016, the real estate market was in its full swing but the government tax scheme completely changed the scenario and investors started considering other product options. Until the mid of 2017, the volume of investments reduced more than 50% - causing a lot of damage to the economy.
Now, as we have stepped foot in 2018, every investor is concerned about how the market will behave, what the new changes will be, and whether it will be a good time to invest. According to real estate experts and the current market trends, the downfall of the real estate sector is more alarming than 2004-5. In this blog post, we are trying to portray the current situation of the real estate sector and future predictions.
Luxury Properties are Not Advised
Properties priced over 2 crores (luxury properties) were among the most affected property types and stagnation is expected this year as well. Properties belonging to this category have observed a price fall of 20% and this is also a reason why a lot of underdeveloped projects are also facing a significant drop in prices. Investors are not willing to invest in projects that are not expected to generate returns in the short run.
Small Homes are a Good Choice
Properties of 3 and 5 marlas under the price of under 50 lacs have not really faced the wrath of the downfall of the real estate sector. Considering the fact that a majority of the population of Pakistan belongs to a middle-class income, small homes are always a popular choice. A little stagnation was observed in late 2016 but things are improving gradually and the trust of investors has improved to a great extent. For investors, these homes can also yield high rental income.
How is the Fall in Prices Beneficial for Investors?
The downfall in prices has actually benefited the investors. The developers have started realizing that in order to attract a large number of investors, they have to complete the developing work as quickly as possible. This is the reason why the development work is completed before advertising a new housing scheme these days. The downfall in prices is also attracting a large number of average income investors. A lot of realtors suggest investing in flats and apartments because the returns are higher.
The Way Forward
Being an investor, you should be eager to look at the bigger picture. Since the property prices have started declining, now is your chance to acquire properties that you couldn’t even dream of two years back. If you want the best results, try to invest in the renowned housing schemes of Pakistan. Planning and research are essential so that you may not end up losing your hard-earned money.
2018 will not bring a significant change in the real estate sector in Pakistan but prices will improve in the coming years. If you are facing a price drop, it is highly recommended to wait for at least 6 months before disposing of your property. However, if you are not satisfied with the market condition and want to sell your property, consider listing it on ilaan.com to find better deals.