Pakistan Real Estate Market Analysis 2018
Real estate has outperformed all other sectors since 2001. Reality sector was booming until the first half of 2017. But Panama Case Decision has totally crashed the property market. This correction was long overdue as prices were highly unaffordable. Here is the Pakistan Real Estate Market Analysis 2018 Trends.
Property price trends
The high property prices in Pakistan were just due to the huge influx of black money in real estate sector. Property prices are falling due to the ruthless crackdown on black money. Already property prices are 25% down from the peak in the first half of 2017. Prices are crashing fast in the areas where speculation was very high.
Behavior of buyers & sellers
Now it’s the buyer’s market as properties are more than the buyers. Buyers are waiting for the prices to be bottomed out so that they can buy cheap properties. But on the other hand, sellers are desperate to find the buyers so that they can minimize the losses. But it’s hard to find the people with white money to buy expensive properties.
Situation of estate agents & developers
Situation of estate agents is very bad as their income has been slashed due to the low transactions. Many estate agents have closed their offices as they cannot afford the expenses. Similarly, developers have sustained huge losses as their projects are unsold. Developers are trying to sell the projects at loss but still no buyers.
What’s next?
The property crash will take many months to complete. When prices will bottom out, we will see 35-50% price decline followed by many years of stagnation. Without black money it’s the affordability crisis as honest tax payers have low purchasing power. So price fall will continue to the level where properties are affordable for genuine buyers with white money.