Pakistan is moving towards fair property price
High property prices in Pakistan were due to the unchecked inflow of black money into real estate sector. SC has started the ruthless crack down on black money and we can see decline in property prices. Property prices are still out of the reach of most Pakistanis, but at least price fall has started which is good for genuine buyers.
Now it’s buyer’s market in Pakistan
Buyer’s property market is one, where properties are more than the buyers. In this scenario, buyers are at advantage as they have more property options and good price bargain. Due to the property price fall, genuine buyers are at the driving seat. Crack down on black money has started the golden era for genuine property buyers in Pakistan.
Pakistan is moving towards fair property price
Property prices reflect the purchasing power of buyers. Greater purchasing power means that property price is high and vice versa. Property prices in Pakistan were always fixed by the people with black money. This is why we have seen in past that property prices were rising overnight due to huge influx of black money into real estate sector.
But now this has changed in the favor of genuine buyers with white money. Prices are falling as genuine buyers with white money have less purchasing power. Now property prices will be determined by the purchasing power of genuine buyers. Prices will keep falling to the point where genuine buyers will be able to afford properties.
Now Pakistan has entered the golden era of fair property price, as property prices will be what buyers could afford. The time of day trading has ended as houses will be only for living. But we must know that properties are still 35-50% overvalued according to the purchasing power of genuine buyers. Just fasten your belts as ride will be very bumpy.