Impact of Benami Assets Confiscation on Real Estate Market
Pakistan Tax Amnesty Scheme 2019 expired on 3rd of July 2019. FBR has started to confiscate Benami Assets in form of Benami Bank Accounts and Benami Properties. This was the usual practice in Pakistan to buy Benami Properties on name of relatives or servants to conceal ill-gotten money. This blog describes the impact of Benami Assets confiscation on real estate market.
Pakistan Real Estate Market Situation
Pakistan property market is almost dead since the announcement of budget 2019-20. Many property tax laws were amended. There are no investors in the market. Even it is hard to find buyers to sell properties. Only people who need to build homes for living are buying plots and houses. Property transactions are record low. Just 3-5 file transfers in DHA Lahore this week. The new property laws have diverted the investments away from real estate sector. But at the same time genuine buyers are very happy as prices are falling and they have many options.
Impact of Benami Assets Confiscation on Real Estate Market
Benami Properties were bought in past to park the black money. This practice artificially increased the property demand due to which property prices also increased. Now government has started the ruthless accountability process. So no one is buying the benami properties as government will confiscate in future. This has totally changed the scenario of real estate market. Once Pakistan Real Estate sector was famous as safe haven for black money but now it is just for the genuine buyers as prices are falling day by day.
What is in store for Pakistan Realty Sector?
Property Market has changed forever due to budget 2019-20 property tax-amendments and enforcement of benami act. Speculation has ceased to exist as transactions are record low. The only buyers in the market are who are buying plots or homes for living to avoid high rents. Many estate agents claim that property prices in Pakistan will see 50% price decline by the end of 2019. If investors are in panic to divert their investments, genuine buyers have seen a big relief.