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Impact of Panama Case on real estate sector

Impact of Panama Case on real estate sector

HIM Emperor Jahangir;

‘World is conquered by sword but ruled by pen. No nation can survive without justice’.

Honorable SUPREME COURT OF PAKISTAN has announced its decision about Panama Case and everyone knows the outcome. We just need to discuss the impact of Panama case on real estate sector.

Crackdown on black money

Panama case decision has loudly announced the direction of Pakistan as a corruption free nation. What we will see in the coming day or weeks is the end of plea bargain culture and crack down on black money. Now onward, no one will be able to park black money in real estate sector. The nation is fed up now, people with black money can buy luxury properties but honest tax payers are unable to buy even small houses.

Property prices will fall

The biggest effect of Panama case will be on property prices. Everyone knows that property prices were crashing in Pakistan after budget 2016. Prices just stopped declining after the introduction of property tax amnesty scheme. Now crackdown on the black money is evident, so who will dare to buy property with black money? In the absence of black money, property prices will crash.

Genuine home buyers are at advantage

Genuine home buyers were forced away from the property market due to abnormally high property prices. Now due to crackdown on black money, property prices will fall. This will be the time when genuine home buyers will be able to buy properties on affordable prices. But genuine buyers have to wait few months as price drop will take some time.

End of SATTA culture

Pakistan property market was high jacked by land mafia. Land mafia was the main reason behind abnormally high property prices in Pakistan. But now property prices will be dictated by the genuine home buyers with much less buying power. In other words, property prices will be now dictated by real demand rather than artificial demand due to influx of black money.

Cheap properties will be price crash resilient

Target of black money is the top societies with expensive properties not the small or cheap properties. Cheap properties always have high demand as genuine home buyers purchase these properties for living. Therefore prices will not fall in Gwadar as property prices are affordable as compared to other cities. Property worth 10 million or less will be price crash resilient. In short, luxury property price will fall. Prices will also fall in societies where speculation is high.

Why property prices are sky high in Pakistan?

(21) Comments

  1. Shoaib

    on   said 

    Kindly update me regarding price fell in lahore housing schemes as I am looking for 8-10 marla plot or house for living purpose in good living environment but like beheria as it is far away from lahore city .My budget is 55-60 lack for plot and 90-95 lacks for house. Plz advice.

  2. Nizam

    on   said 

    Sir when will be the ideal time to sell a 200sq yard plot in Aligarh housing society Karachi as the prices right now are very low.

  3. yousaf

    on   said 

    @Ghar 47
    Aoa sir i want your opinion about my investment , i want to invest in b-17 islamabad for which i will sell a plot in bahria town phase 8 rawalpindi. so is this a good idea to sell plot in bahria town phase 8 and invest that money in b-17 multi gardens Islamabad? waiting for your reply

    • yousaf
      Choice is yours
      Bahria Phase 8 Rawalpindi will be hot investment after the construction of Rawalpindi Ring Road. Location of Phase 8 will be between G.T. Road and Ring Road.
      Location of B-17 is also hot as its has facing to G.T. Road and Motorway

      So if you can wait, Bahria 8 will be good investment, other wise go for B-17

  4. Hammad

    on   said 

    I have two 10 marla files of bahria orchar 4. What is its future? Can you please suggest if I should hold it for long term or can sell for better returns? Also, will it be feasible if I sell both files and go for DHA Gujranwala or something more safe and rewarding?

    • Hammad
      Bahria town is balloting Bahria Orchard 4 on 15th of May. If you want you can hold up to balloting.
      DHA Gujranwala is good investment but for long term as due to slow market profit margins are less at the moment. Project will take many years to be fully developed.
      Its not bad idea to sell files and invest some where else.
      Pakistan property market is stagnant is Karachi, Lahore and Islamabad. Even top new projects in these cities have failed to attract buyers, even if take the example of recently launched Bahria Paradise Karachi. Project is stunning but outcome is low at the moment.
      GWADAR is still performing better.

      The best location project in Gwadar is PALM CITY GWADAR, just near to Airport Road.
      Click on the below link to find details,

      For sale and purchase of properties in Bahria Town Lahore and Gwadar you can contact Mr. Imtiaz @ 0323 2227122
      You can discuss about Bahria Orchard and other investment options in detail.

  5. nazish fatima

    on   said 

    Sir. my brother want to buy SD 350 sq/yard house Falcon complex new malir near malir cant.

    it has been heard that these houses are being buy by installment by paying 50% of their new construction houses .

    kindly told me who is the main agent so I could contact with them.

    similarly what is your idea price of this bungliows?

    is it right time to buy it or wait to see budget. as you have said prices may bubble burst very soon

    your reply will be highly appreciated.

    • nazish fatima
      You can call Mr. Nisar Ahmed
      0321 3355724
      The price for SD 350 SQ YARDS Bungalow in Falcon Complex Malir Karachi is 325-335 LAC

      Its always better to see budget as market is slowing down.

      If you just want for living then buy it other wise for investment, Fazaia Bungalows Karachi is the best project with 5 years installments.

  6. Nazish fatima

    on   said 

    I have few question

    1) it is true that during last 10 years govt have not taking any measures to incourage manufacturing set up why?

    2) Pakistan main product is textile but shopping centres are full of Chinese goods. Why govt take notice it ?

    3) everyone says that in real estate profit is become very high without any risk and hardworking and manufacturing process is require hard working and risk that is why nobody want to set up factories ? Is govt is sleeping?

    4) I have not seen any country in the world that their economy is based on real estate sector then how pakistani economist want to run it?

    5) if their is any gambling is real estate then we assume govt is week and gamblers are strong .. is so then why not the gamblers are strong other countries of the world.why every bad things in pakistan ?

    • Nazish fatima
      Biggest problem in Pakistan is the shortage of electricity
      Manufacturing sector has been closed just because of shortage of electricity
      Unfortunately, at the same time deficit if running high
      Don’t think in such situation property prices will stay high forever
      Life is the complete cycle not just the real estate sector
      Who will pay high price for property when there are no jobs

  7. adeel

    on   said 

    not agreed at all. as panama case will di nothing impact if N.S position. people are of the view “oy bhai ab N.S ka kuch bura nh ho skta” and he will remain PM untill next elections. and uptil then new developments will boost and rise property prices definitely.

  8. Rajab

    on   said 

    @GHAR 47

    Respectable Sir, thanks for the write up on panama though it has been said from last one year since budget announced that prices will be stable or come down nothing happen in most part of Lahore or Gujranwala, Multan (DHA area). I have seen sharp increase in the prices of DHA gujranwala, multan and bahwalpur to some extent.

    I also interested to buy if price come down but its happening vice versa and not sure if it will happen in future or not, would you please elaborate more i feel some thing missing or over looked.

    • Rajab
      Leave the panama issue for a moment
      Budget 2017-18 is just a month away
      Everyone knows that Pakistani deficit is record high and in fact if thing are same for few more months we are bankrupt
      Who will pay for the promises which will be made in the election cut budget
      Taxes will be increased in the next budget which always have negatively affected the property prices.
      Do you think economy is recovering in Pakistan or growing at record rate?
      Pakistan property market has reached a point where black money is the price setter
      Honest tax payers are unable to afford properties.
      How long this situation can last?

      Apple can be 500 rupees per kg but no one will buy at Rs 5000/- per kg
      Same is with property
      When real demand and affordability is declining, who will pay for the artificially inflated property prices.
      From here;
      just one way to go
      You can see even property transactions have decreased in GWADAR due to issue of developments and time it will take to develop Gwadar infrastructure.
      A new 3 bedroom flat project is launched in KARACHI, price is 1.6 crore
      How many people can afford it?
      Launch of new projects in record low
      Many beautiful projects are unsold due to unaffordable property prices.

      Beautiful apartment project is approximately 35% sold out and this is only by reducing 30-40% prices

      The beautiful project and state of the art planning
      Can you imagine the loss to developers?
      DHA properties are high target of black money, not for living.

      We have fundamentally reached the point where people cannot pay for inflated price
      Either property prices will fall or pay rise will solve the issue.
      Pakistan real estate sector is in bubble phase again ready to bus soon.

      • Nawaz

        on   said 

        @GHAR 47

        Good detailed reply, I agree with your thoughts and would like to see happening also. I want to invest 3 million can you guide me which option is recommended for 1 year or plus.

        I prefer Lahore, however DHA Gujranwala / Multan and Bahwalpur I can think based on your advise.

        • Nawaz
          DHA Gujranwala is good option
          Near to Lahore
          Near to G.T. Road connecting different regions
          Need of top housing scheme is expanding city; Gujranwala
          But I will advise you to invest till 2020.
          It will benefit you as you will get good returns
          Secondly you have to pay 0% capital gain tax CGT

  9. Muhammad azeem yddin

    on   said 


    ALLAH aap ki zuban Mubarak kare…

    people have white money is really trouble because they are paying about 30 to 40 % money of their salary on rent. it means they can be never be able for a small home even 80 sq/yard which at this moment cost around 3 million.

    people of black money and land mafia are making miney and many homes and plots but HONESTLY TAX PAYER have HOMELESS. no home for their children.

    I think present and previous both id the government have NEVER consider this situation. they have NEGLECT it.

    Both have PRIME WISH how to RULE 5 years. Now the time has come Allah appoint few person who be able to BREAK the chain and Allah shower his mercy upon Pakistani people.

    may Allah accept my prayer.

    • Muhammad azeem yddin
      Its true, honest people are forced out of property market in Pakistan just because of black money.
      Black money has artificially increased the property prices.
      No honest person can buy even 125 sq yard / 5 Marla house in Pakistan.
      Only crackdown on black money will crash the property prices in Pakistan and then genuine buyers will be able to buy homes.


      Government of Punjab started the greatest project in history of Pakistan, ASHIANA HOUSING SCHEME’.
      But this scheme was very limited and general public could not benefit this.

      The current government never spread this affordable scheme to all Pakistan. Had the government done this, it had solved much of the housing problem in Pakistan.
      Government can still achieve the goal of providing affordable housing, by including housing in infrastructure development program and starting ASHIANA HOUSING IN EVERY CITY, TOWN & VILLAGE of Pakistan


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