Is 2020 the year for Real estate? Analysis on the real estate sector of Pakistan.

The Pakistan real-estate sector has always been a source of doubt and uncertainty for buyers and sellers alike. Changes in the government, policies, and the economic conditions of the country have a direct impact on the market.

However, the market can also be one of the most lucrative if you play your cards right. In recent years, the country has laid emphasis on the investment opportunities in this sector and have developed various policies and reforms to persuade people to invest.

 While last year had not been favorable for the market with scandals like the Bahria town Karachi scam. Those issues have since been resolved and the market for 2020 holds a lot of promise.

Factors that are set to impact real estate in 2020:

Measures to reduce black money

The first major blow to the market will come from the government itself. Pakistani investors had a legal loophole through which they could invest their black or ill-gotten money into real estate without any questioning. This however is rapidly changing due to PTI’s government.

They have placed laws to overcome this influx of black money into the country. This, unfortunately, means bad news for the real estate market.

The lesser the amount of black money in the market causes skeptical investors and a decrease in the amount of investment in the sector altogether. This will further drop the property rates.

Doing this will make it a terrible time to sell any property owned, it could be a good opportunity for investors to buy real estate and then sell when the industry stabilizes and the prices surge.

Uncertainty of CoVid-19

Another disaster to befall the Pakistan real estate market is the Coronavirus, also called Covid-19.

While things are yet to unfold in the aftermath of this virus, we can be certain that it will cause a major dip in the market.

In this pen Adamic situation The Write Pick provides the best services for there customers.

Investors are holding onto their money amidst the global crisis and no one is looking to invest in real estate at the moment. The virus has caused massive unemployment which has brought a drastic crash in the economy. Ultimately it has also caused reservations in investing in real estate.

On the other hand, if you are a buyer, this would be a good idea. Due to the crash, the prices have never been lower to purchase a house.

After the pandemic resolves, the stagnant market is set to rise once again and cause a boom in the prices when the awaiting investors will invest based on the market conditions.

Safe bets to invest in

One major problem that prevents off-seas and foreigners from investing in Pakistan is owing to the risk of fraud or scams. Many times, people invest in plots or houses that they will suddenly get ownership of after a certain amount of time, however when that time arises, they don't receive their property.

While this was a problem previously, there have been opportunities in many safe bet areas such as DHA goldcrest mall in Lahore, Bahria Town, and downtown mall in liberty. These are sure-fire bets that will result in a large profit for the investor.

2020 is a big year for these areas and investments in these projects will be most fruitful.

Economic stability in Pakistan:

The end of 2019 was rough for Pakistan in terms of its economy.  The dollar was extremely unstable with inflation at an all-time high.

Nonetheless, since the beginning of 2020, the dollar has now stabilized and inflation this year has been predicted to be lower than in 2019.

The prime minister of the country has also introduced some policies which would ease the investors and buyers in the real estate market. The first being that the interrogation for the money trail will be loosened for people who are looking to invest. They will not be asked their source of income.

Another reform he announced is that there will be a fixed tax rate on the property that would be dependent on the size of the land, this fixed rate will prevent corruption and harassment in the sector. Along with this, he also waived off the withholding tax on the purchasing and selling of land in an effort to boost the economy.

He has also started his own Naya Pakistan housing scheme which is meant to provide low-income people with housing. Investing this will also provide investors with tax breaks and have many of the fees waived off.

The Write Pick is a complete content writing and copywriting services company having expert-level that can actually help you to grow your business

Another important factor is that the prime minister did is give industry status to the real estate sector, this would increase approval for residential projects, and further increase transparency within the sector. This is set to boost the GDP by increasing job opportunities and lowering the overall construction costs.

Conclusion

To sum it up, even though the real estate market in Pakistan is known to fluctuate over the course of the year, there can be assumptions made which show that the present would be the optimum to make any purchases in real estate since the prices are low and there is relatively low investment. On the other hand, if you are looking to sell, you benefit later in the year when the Prime Minister’s reforms come into effect that brings in foreign investment to the country