Pakistan real estate construction sector is stagnant
Pakistan real estate construction has always played a major role in national economy, as Pakistan is a developing nation and needs new residential areas & commercial centers for its booming urban population. But, now things are not rosy for real estate construction sector. In December 2015, more than 40 new real estate projects were launched. But in December 2016, just 3-5 new real estate projects have been launched so far.
Reasons of stagnation in real estate construction sector
Higher taxes imposed on construction industry
Things have changed after property taxes were increased in Budget 2016-17. Now developers have to pay higher taxes on sale and purchase of properties. FBR has also imposed construction / map tax according to size of the property that has also increased the overall development cost. Due to all these changes, profit margins of developers have decreased. Many uncompleted projects can be seen in all major urban areas of Pakistan.
Economic meltdown of West and Middle East
10 million Pakistanis live in foreign countries. These Pakistanis send huge remittances and major portion of this money is used to purchase properties. Majority of new real estate projects in Pakistan are purchased by foreign Pakistanis as they have more buying power than local Pakistanis. But due to economic meltdown of West and Middle East, remittances are decreasing. The decrease in foreign remittances has great impact on real estate construction sector of Pakistan.
Impact of black money on real estate construction sector
Real estate sector is major source to whiten the black money worldwide. In Pakistan, money collected from illegal means was parked in reality sector. But after tax laws, FBR was enforced to check the flow of black money to reality sector. Real estate construction was hit hard by blockage of black money. Now government has given tax amnesty but still investors are hesitant to avail it as many consider this as big trap. Without black money, pace of real estate construction sector has slowed.
New projects in top cities of Pakistan, December 2016
Pakistan real estate sector was dependent on three major cities; Karachi, Lahore and Islamabad. But now Gwadar is also the major investment hotspot and dubbed as game changer by experts. GDA has cancelled the NOC’s of numerous housing schemes and only 6 have fresh NOC’s. Let’s have a look at 4 projects in 4 cities.
Legends Executive Apartments Bahria Town Karachi
LEGENDS EXECUTIVE APARTMENTS is the new residential / apartment project in Karachi by Legend Developers. LEGENDS EXECUTIVE APARTMENTS is located in Bahria Town Karachi. LEGENDS EXECUTIVE APARTMENTS is offering 2 bedroom, 950 sq ft, apartments for sale. Apartments in LEGENDS EXECUTIVE APARTMENTS can be booked on cash payment and also on easy installments of 3 years.
BALCONY 6 APARTMENTS Dream Gardens Lahore Phase 1
BALCONY 6 APARTMENTS is the new residential / apartment project in Lahore by Izhar-Monnoo Developers. BALCONY 6 APARTMENTS is located in Dream Gardens Phase 1, just opposite to COMSATS University Lahore. BALCONY 6 APARTMENTS is offering 2 bedroom apartments for sale. Flats in BALCONY 6 APARTMENTS can be booked on cash payment and also on easy installments of 6 months.
Teeraces Dream Gardens Capital Islamabad
TERRACES is the new residential / apartment project in Islamabad by Izhar Monnoo Developers. TERRACES APARTMENTS are located on Islamabad Murree Expressway. Izhar Monnoo Developers have successfully delivered many state of the art commercial and residential projects in Lahore and Multan. TERRACES is offering 1, 2 & 3 Bedroom Luxury Apartments. Flats in TERRACES can be booked on cash payment and also on easy installments of 2.5 years.
Jamal City Gwadar
JAMAL CITY is the ongoing mixed-use residential and commercial project in Gwadar by Jamal Baba Builders & Developers. JAMAL CITY is located in front of Water Sports Club on Marine Road, Gwadar. JAMAL CITY is offering 5, 10 & 20 Marla Residential Plots and 4, 8 & 16 Marla Commercial Plots. Residential & Commercial Plots in JAMAL CITY can be booked on cash payment and also on easy installments of 4 years.
Developing story that will crash the property market
Story of Indian currency crisis and its impact on Indian reality sector are the talk of the town. After Indian currency crisis, Indian property prices have crash by 50% in many areas. Indian effort to control black money has hit hard the reality sector. Now Pakistani government wants to control the black money by abolishing 5000 PAK Rupee Bills. As we know that black money is mostly parked in higher notes, abolition of 5000 PKR NOTES will ensure a blood bath for Pakistan property prices.