News / Articles

Check out market updates

Pakistan Tax Amnesty Scheme 2018

Pakistan Tax Amnesty Scheme 2018

On Thursday, Prime Minister of Pakistan Shahid Khaqan Abbasi has announced the tax reforms and onetime tax amnesty scheme. These steps have been taken to increase the tax net as currently only 700,000 people pay taxes. Here is the complete detail of Pakistan Tax Amnesty Scheme 2018.

Who can and can’t avail tax amnesty scheme

Every Pakistani citizen can avail this amnesty scheme. But politically exposed persons and their families are not eligible to benefit it.

Duration of new amnesty scheme

Pakistan Tax Amnesty Scheme 2018 is offered till 31 July 2018.

AMNESTY SCHEME
  • 0% payment or source of income required for annual remittance less than $100,000
  • 2% payment on foreign cash if brought to Pakistan
  • 5% payment on dollar accounts kept abroad
  • 3% payment on foreign fixed asset
  • 5% payment on all undeclared incomes earned before 30 June 2017 on all local assets (cash, shares, gold, property) to bring into tax net
INCOME TAX REFORMS
  • People earning up to 100,000 PKR per month have to pay no income tax
  • People earning from 100,000-200,000 PKR per month have to pay 5% income tax
  • People earning from 200,000-400,000 PKR per month have to pay 10% income tax
  • People earning more than 400,000 PKR per month have to pay 15% income tax
  • The higher income tax of 30% will be lowered to 15%
  • CNIC Numbers will be made NTN Numbers
PROPERTY TAX REFORMS
  • 1% advance tax on property transactions that will be adjusted in annual tax returns
  • Current FBR Property Valuation and DC Rates to be abolished on 1st of July 2018
  • Federal and Provincial Governments will charge just 1% tax from 1st of July 2018
  • Non Filer can’t buy property worth PKR 5 Million or over from 1st July 2018
  • FBR would prescribe one-page e-return for Foreign Pakistanis to buy properties in Pakistan.
  • People can register property at whatever rate they want
  • Government can purchase property at 100% higher rate for fiscal year 2018-19, 75% higher rate for fiscal year 2019-20 and 50% higher rate for fiscal year 2020-21. (Higher rate takeover is to end the under value registration of property. This will end all disputes as people will register property at the current rate. For example a property is worth 4 million. Current registration value is 10 LAC. So according to the new law government can buy back property at 20 LAC. So buyer will bear the loss of 20 LAC. So people will never dare to register property at lower rate than the market value. In other words property registration value will be the same as market value. End of three separate property valuations; Market rate, FBR Rate and DC Rate).
GOOD POINTS
  • Best tax reforms in history of Pakistan
  • More people will be included in tax net
  • Tax payers will get relief
  • Property buyers and sellers will pay less money on transactions
BAD POINTS
  • Worst amnesty scheme in history of Pakistan
  • Honest tax payers are discouraged by amnesty scheme
  • Amnesty scheme will be cause of social unrest in Pakistan
  • Bloodbath for luxury property market
FATE OF AMNESTY SCHEME

Dozens of tax amnesty schemes have been offered in the last 70 years but all have failed. This amnesty scheme will be another flop. Recently Lahore High Court has ruled out the Tax Amnesty Scheme of 2013. The applicant also requested to end the unjust culture of tax amnesty schemes. The present amnesty scheme will also be challenged and ruled out as it is against the law to award the tax evaders whereas honest tax payers have paid the higher taxes on their incomes.

Impact of Amnesty Scheme on PAKISTAN REAL ESTATE SECTOR

First of all this amnesty scheme will be ruled out by NAB or SC. Even if this scheme survives it will be a death blow to the high-end or luxury property market. The reason is that non filers will not be allowed to buy property worth PKR 5 million or above. Indeed low price plots will have good demand. But what house we can buy with 49 LAC?

Prices are currently 25% down from peak of 2016. If amnesty scheme is ruled out then property price fall will take some time. But if amnesty scheme is applied then it will totally crash the property market. One way or other things have changed in Pakistan. The honest tax payers are the real winners of every outcome. This tax amnesty scheme will totally block the influx of black money into reality sector.

Recommended:
6 Property Investment Tips for Better Returns

139 Comments

  1. Najeeb Ahmad

    on   said 

    Assalam O Alaikum,

    I have a couple of questions.
    01. What about Overseas Pakistanis ? Do we have to declare our assets which are earned legally by spending our lives outside country and feeding the economy with Foreign Exchange. Are we exempted from this tax network or bound to pay tax ?

    02. What about the property which was built or made before all these schemes ? I mean houses made 20 years back ? houses made during last 3 years ?

    Can you kindly guide little bit , as I remember our remittances and income was tax free as Overseas Pakistanis ?

    Reply
  2. kashif

    on   said 

    sorry Not 11 crore it is 1 crore and 11 lack total 11 mn pak rs 🙂 kindly reply to me here or personally in my mail box
    waiting
    best regards,
    kashif

    Reply
  3. kashif

    on   said 

    Sir Can you reply to my below post
    how much tax i have to pay if i am buying a 11 crore property in karachi as per new rule?

    and what would be the procedure
    thanks
    kashif

    Reply
  4. kashif

    on   said 

    Salam Sir,

    i am a over seas pakistani and holding NICOP card I have no idea about this new law i have paid 11 lac pakistani as a advance to buy a 1cror and 10 lac rs property i just wanted to know that how much tax i have to pay to buy 11 mn property as i can see most of the blogs and news saying Overseas can not buy property….. kindly reply it is urgent

    Reply
    • Kashif
      OVERSEAS PAKISTANIS
      Overseas Pakistanis are not filers in Pakistan. Government has introduced new clause in Budget 2019, that non filers can’t buy property worth 5 million or more.
      BUT OVERSEAS PAKISTAN can buy property. FBR has issued the E-FORM for overseas Pakistanis to be filers. So overseas Pakistanis can buy property.
      TAXES FROM 1 JULY 2018
      Buyers have to pay 1% advance tax that will be adjusted in annual tax return
      1% provincial tax
      1% withholding tax

      Reply
      • kashif

        on   said 

        Dear Mr. Anwar
        Thank you very much for your prompt reply i really appreciated just one more question 🙂 my buying price is 11mn pak RS which is 1 Crore and 10 Lac. … but actual value in FBR system is 36 lac do i have to pay 3% which you have mentioned above is on 1crore 10 lac of 36 lac ….. also 15 advance tax will be return able not…..? these two question are important kindly reply best regards,
        kashif

        Reply
      • kashif

        on   said 

        Dear Mr. Anwar
        May you please send me the FBR E-Form link as i can not find on FBR website
        i’ll download it

        thanks and regards,
        Kashif

        Reply
  5. Dr.Azhar Ata

    on   said 

    What if substantial amounts of money are declared through Amnesty Scheme; will such an event help stabilize property prices ?

    Reply
    • Dr. Azhar Ata
      Unfortunately public has never availed the tax amnesty scheme to be filer. Like old tax amnesty schemes this amnesty scheme has also failed. FBR has prepared list of 50,000 people who have invested in real estate since 2014. Looks like FBR is ready to repossess the properties bought by illegal money.
      Amnesty scheme has failed as people are afraid to show illegal money.

      Reply
  6. RIZWAN

    on   said 

    Sir,
    I have to know about Islamabad’s best area to buy a plot within 3 million.??
    and this time, its good to buy or not?? like prices are very high i.e Faisal town, top city etc.

    Please guide……….

    Reply
  7. Mujahid Ali Akbar

    on   said 

    Sir I regularly read article blog posts of GHAR47. Kindly tell us when is the best time to buy property according to the current market situation.
    Thanks

    Reply
    • Mujahid Ali Akbar
      The right time to buy property is when prices are record low. When property prices are falling then you should wait for bottoming out of the prices. If you will buy the property when prices are falling then chances are greater that you might lose the money by further fall of prices.
      According to the situation prices will bottom out in next 4-6 months and that will be the right time to buy property.

      Reply
    • Muhammad Moin
      Not the time to buy property. Finance Committee has rejected two applications of AMNESTY SCHEME. Things are changing. Due to new laws sale is low prices are falling. Wait for 3-4 months before buying.

      Reply
  8. Khan

    on   said 

    Dear Malik sb
    Thank you so much for your valuable and well written articles.
    I have one question that non tax payers can purchase the property below 4 million, so is it the market value equivalent to 4 million or DC Rate ( Value of the property 4 million)

    Regards

    Reply
    • Khan
      It is market value. Government has introduced new tax reforms to end the confusion of DC Rate or FBR Rate. For people who will register at low value than the market value, government will buy back the property by buying some extra money as reported in new tax reforms.

      Reply
  9. Shahzad

    on   said 

    Assalam o Alaikum sir.
    1 Overseas pakistani agar 1st july k baad koi plot ya house lena chahta hai jiski keemat 4 million se zada hai to wo lesaky ga ya nahi. Agar lesaky ga to usko kitna tax dena pary ga.
    2. 4 million se kam k plot ya house pe non filer overseas pakistani ko kitna tax dena pary ga.
    3. Agar overseas pakistani filer ban na chahta hai to usy kitna income tax dena hoga ya koi panalty hogi.. kiya procedure hoga.
    4. Overseas pakistani to country ki economy ko kafi had tak support krty hen to enko koi benefit deny ki bjaye tax ki koi logic samajh ni aati. Plz sir kindly apni maloomat se roshni dalye ga.

    Reply
    • Shahzad
      Overseas Pakistanis are the backbone of Pakistani Economy. Its so sad that they are not considered when preparing the budgets and imposing taxes.
      OVERSEAS PAKISTANIS BUYING PROPERTY FROM 1 JULY 2018
      Overseas Pakistanis are non filers so they can buy property worth 39 LAC but not above 4 MILLION PKR. On purchase of property worth 39 LAC overseas Pakistanis have to pay 4% Withholding Tax and 5% Stamp duty. But wait for the budget as government might decrease the taxes.
      OVERSEAS PAKISTANI BECOMING FILERS
      Overseas Pakistanis can be filer and for this they have to file the tax returns forms every year.

      Reply
  10. Ali Iftikhar

    on   said 

    Sir
    What is happening to Dha Bahawalpur. I bought file for 28 lakh last week and now selling at 25. Should I hold or sell?

    Reply
    • Ali Iftikhar
      Ideally you should sell as prices are falling on daily basis. I know the loss of 3 LAC is huge as more than 10%. But its better to avoid the further losses.
      But I you want to hold then keep it in your mind that real gains will be earned after 5 years.
      Most people who invest in DHA OR BAHRIA TOWN Lahore are not filers. As government has announced that non filler cannot buy property worth more than 4 MILLION this is why property prices are falling nationwide.

      Reply
  11. Jahanzeb

    on   said 

    Malik sahib. Can you put your comments on DHA multan investment at this rate of around 45 lack for a period of short term let say 6_12 months…. or do u see some dip in coming days….

    Reply
    • Jahanzeb
      Prices are already record low in DHA MULTAN & DHA BAHAWALPUR. I don’t see much changes in near future. If some one want to invest then prices are affordable. But keep in mind that invest for 4-5 years. As only gain will be earned when societies will be fully developed and inhabited.

      Reply
  12. ali

    on   said 

    Dear sir ,
    looking for a house to buy in DHA karachi but it seems that people are still asking exorbitant rates and not ready to come down .
    someone even said that one must buy the house by august 2018 or else one can forget about buying a house as the prices will soar.
    Can you please give advise

    Reply
    • Ali
      This is totally wrong
      Prices will be down in August as from 1 July 2018 non filers can’t buy property worth more than 40 LAC. These are the ugly trick of the dealers to quickly make the deals. prices are falling and most people are waiting for more than 50% price fall.

      Reply
  13. Farooq Lari

    on   said 

    Salaam Anwar sb.
    Thanks for your insights on property market. I want to buy a 10 marla possession plot in Lake City Lahore in M-2A or M-5 to construct house for own living. What should be my offer price for it.
    I will appreciate a reply with related details to initiate the process soon?
    Regards

    Reply
    • Farooq Lari
      The average price of 10 MARLA Possession plots in Lake City Lahore Sectors M-5 & M-2A are in the range 70-85 LAC.
      Prices are normal as per the developments and location.
      BUT
      Government is presenting the budget 2018-19 on 27-04-2018. There are news that the government might totally ban the non-filers from buying property in Pakistan.
      This will totally crash the property market in Pakistan.
      So my advice is to wait for 2 more months and buy only after 1 July 2018. You will be able to buy the same plots at much affordable rates.

      Reply
  14. Misbah Ul Haq Syed

    on   said 

    Dear Malik Sb,

    Can you recommend any good investment in Karachi having low value, installment based, free of scams and potential for future profitability.

    BTW, what is your opinion on Gawader?

    Thanks in advance.

    Kind regards,
    Misbah

    Reply
  15. Hasan

    on   said 

    I see some observations that prices have not really fallen since 2016 while GHAR47 is talking about a crash. Let me attempt to explain a few points.

    Yes, it is true that Asking prices have risen since 2016.

    And yet, this alone does not unequivocally imply that market is booming. In fact, the opposite may be true as espoused by Ghar47.

    But how’s this possible? I mean doesn’t this appear like a contradiction in terms or ignoring reality?

    Let’s work out this seemingly confusing puzzle with the help of an analogy.

    A car starts from 0 and accelerates to 100 km / hour. Then even when the foot is off the accelerator the car goes on cruising at high speeds for some time. However, gradually it will slow down. So the car is still moving forward but is decelerating all the time.

    Focus on the Deceleration part and see it in terms of property market. Imagine a scenario as follows:

    Year 1  Property asking prices go up 30%
    Year 2  Property asking prices go up 15%
    Year 3  Property asking prices go up 5%

    From the above illustration the market appears to be rising. True. But what about the rate of rise? Is it as robust as Year 1’s 30% or is it falling over time?

    The rate is falling. Means the market is slowing down. So here’s the punch line: Even when prices appear to be rising nominally, the market may have already lost steam and might in fact be slowing down like our motor car.

    This is the point of departure from our car analogy. As most of us would appreciate, property market is not entirely like a motor car. A motor car’s speed can certainly decline but cannot ever go below 0. The same is not true for property market, specially in terms of a time period of say, 15 – 25 years. During such periods, property prices may even fall below their level of several years ago – if not in nominal terms then certainly in real terms.

    Over a very long time like 40 – 50 years or 100 years, property prices do appear to rise. But that too is open to debate whether they actually rise in real terms or at least whether the growth in real terms is as much as it appears to be.

    In all this slush don’t forget the role of our broker community. They have been known to push for artificial growth in imaginative ways like:

    • Several brokers sit together and ‘decide’ which areas to hike prices for. Then they would call up their (seller) clients and tell them to enhance prices as market is growing (even when it’s not really growing).

    • They give prospective buyers a higher rate than what is actually demanded by sellers to have room for negotiation and / or a bigger commission. When the buyer questions, they lay it on the seller that he’s the one quoting the high asking price.

    In a nutshell, the nominal prices have risen since 2016. But the market has slowed down considerably. Previously, let’s say 100 sellers were in market and kept on increasing prices. During good times, a majority of those sellers were able to finalize deals. Now, for the same number of 100 sellers only a few deals would take place (perhaps for as low as only 10 – 20% of sellers). What happens to 80% of the other sellers who had also raised prices and await buyers? They would go on waiting. For a while they would wait until some amongst them would be forced to lower asking prices.

    That is exactly what is playing out in Karachi’s DHA now. Yes, a 500 square yards house might have had an asking price of Rs.7.5 crores a few years ago. Then more recently, similar houses were asking Rs.11 – 12 crores. Seems like market is growing, doesn’t it? But it was not really growing; in fact it had already started slowing down or decelerating. Only now a point has been reached when the majority of sellers are not getting buyers even after 1.5 years of holding out & listening to wonderful advice of their brokers.

    Hence, the number of deals has been falling for a couple of years now.

    That, and with general inflation also eating away at real values, things are not good for majority of sellers continuing to maintain high nominal prices.

    However, the gap between asking prices and actual deal prices is wider than it used to be in earlier times due to various (artificial) reasons already mentioned. This is the point when the graph of decelerating asking prices (while still seemingly up) would also visually start going down. Why? Because the asking prices cannot artificially continue to stay up while actual deal prices are lower by several crores …..and still falling.

    In a slowing market, the graph of asking prices keeps appearing pointed upwards (for a time) while the graph of number of transactions points downwards. Later, after a time lag the graph of asking prices also nosedives & follows the graph of number of transactions.

    That is when the common man sees a visible ‘crash’ in terms of nominal prices, the process of which had commenced much earlier.

    It’s also a matter of perspective. Those with a booming-market perspective indeed have the free choice to buy property, hold it for a few months & reap the rewards then. But I have a pretty strong feeling the majority of prospective buyers (at least of high value properties), are not really going to bet their money on the basis of this perspective.

    Property market when seen in context of these factors is falling in real terms & now in various spots it has also started falling in terms of nominal values.

    Therefore, Ghar47 is right.

    Reply
    • paulo

      on   said 

      How wrong can you be — at least this rate the author of Ghar –Zahid and
      you will never be able to hold a property but I assume that all of you
      including me are of the landed class — Price will continue to go up —not fall or come in at a lower rate.

      Reply
    • Hasan
      Many thanks for another detailed analysis
      PROPERTY PRICE TRENDS
      Property prices are falling in DHA & BAHRIA TOWN. DHA Bahawalpur & DHA Multan Files are selling at record low prices. In other cities we can see falling trends. DHA & BAHRIA TOWN are famous for speculation. Due to daily trading speculation is high so price fall is more evident. The situation in other areas and societies is similar.
      REALTORS VIEWS
      I have met many real estate agents. All are saying that prices are falling. Even according to some realtors the market situation is even worst than the crash of 2005-2006. In 2005-6 property prices crashed but sale and purchase activities were not stalled. But now real estate transactions have stalled and in DHA Lahore daily transactions are 80% down from peak of 2016.
      BLACK MONEY CRACKDOWN
      Most real estate agents now believe that real issue in not the taxes but the blockage of the black money. As more than 70% properties are bought with black money. As black money is out so price are declining.

      Reply
  16. Sarah Gul Khan

    on   said 

    Dear sir
    As you have said that due to tax changes propriety value under 4 million is safe.
    My question is that PAk arab has launched new 3 Marla plot deal.
    Is it good for investment.
    Thanks

    Reply
    • Zahid Ali
      Many thanks for sharing the global market trends. This will be very helpful for the readers to understand the property market behavior when government changes the policies. I was watching the Canadian real estate trends. Canadian housing market was heating-up without any real demand. The Canandian Housing crash was expected and now we can see buyers are losing their investments.
      Now we have four examples;
      US real estate market
      Dubai real estate amrket
      Indian real estate market
      Canadian real estate market
      PLUS
      very soon Australian and UK real estate market

      I personally feel that Pakistani situation is similar to Canadian. In Pakistan property prices are falling day buy day. Desperate home sellers are lowering the property prices. On the other hand buyers are cancelling the sure deals. Buyers fear that chances are high that they are buying expensive properties as prices will further fall.

      Reply
  17. Danish

    on   said 

    Should i buy 125 sq yards hpuse in fazaiia housing scheme situated near northern bypass karachi? The price for house is 65lacs in 4years installment plan n owner is asking 7 to 9 lacs own on it. Give your kind advice

    Reply
    • Danish
      I personally like Fazaia Housing Bungalow project due to nice location and 5 years installment plan. As prices are falling, so wait and buy it after 3 months. Chances are high that you will get the good deal.

      Reply
  18. Hasan

    on   said 

    There are many forces at work here which are depressing luxury or high end property market. Two of the most fundamental ones appear to be:

    1. The natural decade cycle – or sometimes an 8-year cycle, with its down swing now in operation (although in some ways it had begun its downward trajectory from even before 2016 in terms of decelerating growth)

    2. The cultural change for Pakistan in moving from a viciously corrupt system to a more civilized one (this change one could say began in earnest circa 2013; still has a long way to go but is shifting into higher gears)

    Let me also claim that these forces do not appear to be targeting Pakistan in isolation. Broadly speaking, these are worldwide phenomena. Both the down swing of the property cycle as well as a cultural move towards a less corrupt society, have similar patterns in various regions of the world.

    But let’s focus on our particular cozy spot in the universe because it happens to be of greater interest to us, the denizens of Pakistan.

    July 1, 2018 is expected to be luxury property market’s Waterloo as it was for Napoleon. However, when something begins to be widely perceived as inevitable then market start factoring that information in from the time such information is publicly known … and may not wait until a specific date.

    Here are a couple of examples from Karachi’s DHA Phase 5:

    Someone I know was looking for a house to buy. After a search, a brand new house was selected. An asking price (let’s say Rs. X crore) was quoted by sellers and I know the prospective buyer was on verge of deciding on an offer that was around Rs. X – 7.5%. At such a price (i.e. at a discount less than 10% from asking price), a deal would have happened.

    Then came the new economic policy.

    Now the buyer disclosed to me his thoughts on the subject, over a nice Thai / Chinese lunch. They are like this:

    • Either he would not make an offer at all for a few months, or
    • If at all he does make an offer, it would be at a discount of at least 25% from original asking price.

    Hence, it is unlikely that a deal shall materialize now. Such a low price would be a shock to the seller who would claim that it is not even covering his cost, let alone endowing him with some profit.

    If seller continues to stick to his original asking price, then for his type of brand new house he would stand to lose perhaps Rs.250,000 per week or a cool Million per month – for as long as he does not sell. This would be due to time value of money.

    Note that these are extremely conservative figures assuming a very low inflation rate. In reality his losses would tend to be significantly higher. And then too, that might only be the financial cost, or the tip of iceberg. If the gentleman seller happens to be from the abundant black money community (a rather high probability over the last decade or so, specially with respect to high value luxury properties), he has far more serious problems headed his way than mere financial losses.

    On the other hand the buyer knows that landscape is changing in his favor and there’s nothing to continue holding up high prices of luxury properties (no, not even the Chinese influx). All he has to do is wait a bit and he’ll get what he wants … if not that particular house, then a very similar one in the same area.

    One particular seller may not sell but there are many others whose circumstances force them to sell.

    Moving on to our next example:

    A used house had a certain asking price until a few days ago. Right after the announcement of property reforms, the asking price has been lowered by a generous 22%. And it’s barely a week after the policy. As time goes on and still no firm offers come by, one may imagine what would happen to the asking price. In this case even the nominal price has been quickly lowered in light of new reality.

    So these examples show that market for high end properties has started changing (nay, tumbling) much before July 1. The much anticipated crash may not happen at that point. In effect, it may have started happening already. At a minimum these example make a case for a stagnant market, or a buyer’s market.

    In all likelihood, it appears to be a lose-lose situation for sellers of high end luxury properties.

    Reply
    • Hasan

      I have observed a unique trend in Pakistan. Since mid 2016 property prices are falling but stocks are rising. This shows that investors are investing in stocks instead of real estate sector.

      One thing is clear that sellers have lost the control. Prices are falling day by day. Its better for the sellers to sell properties now at a reasonable loss than the big loss of 2006 style. I remember many people who bought 500 sq yards / 1 kanal plots in DHA PHASE 5 LAHORE. Their purchasing cost was 1.4-1.5 crore. But after the crash selling price was 45-50 LAC. So loss of 65%.

      Buyer on the other hand know that prices are falling on daily basis. So buyers will not buy unless prices have bottomed out or they get big discount.

      Reply
      • MAZHAR ABRO

        on   said 

        Dear Malik Sb, Hassan Sb and all friends,

        First, I appreciate from the depth of my heart for your honest, logical and critical real estate sector market analysis. I believe your critical analysis is the the voice of masses especially the ones who could not afford to buy their own home for living and raising their children in their own home due to rapidly increasing prices. I cannot agree more that housing sector should not be used for making quick money by using black money but rather it should remain affordable for genuine and needful to own their own home.

        I have a question regarding price fall since 2016. Somewhere it was mentioned that prices are falling since 2016. But in DHA Karachi, a 500 Square yards new house price was around 7.5 Crore in 2016, but now sellers are asking 11-12 Crore for a new house.

        In 2016 DHA Ph-8, Zone -B, where construction is allowed, a 500 Square Yard Plot price was under 4 Crore and now in 2018 the price for the same plot is more than 6 crore.

        Due to still rising prices in DHA karachi rents have risen exuberantly.

        How come prices in DHA Karachi are not falling rather increasing?

        Once again I must thank you for reviving our hope with your honest and ethical views.

        Regards,
        Mazhar

        Reply
        • MAZHAR ABRO
          This is just the asking price. Every homeowner can quote what ever price he wants. But the real price is the selling price. Selling price in DHA Karachi is much lower. Houses are actually selling at 8-9 crore. The price is falling so we will see massive discounts in near future.

          Reply
          • MAZHAR ABRO

            on   said 

            Dear Malik Sb,
            I needed your advise on Bahria Town Karachi Farm House Plots.
            Booking price for a 4000 Sq yard plot was 4.10 crore. Now sellers are asking 2.5 – 3.0 crore own in addition to the booking price.
            Would above price also go down after 1st July?
            Do you think these plot would come back to it’s launching price?
            Regards

          • MAZHAR ABRO
            Chances are more that prices will fall. Many real estate agents shifted from LAHORE to Bahria Town Karachi. But after the slowdown of the market they have returned.
            From 1 July 2018 you will see the more price fall. So just keep away from the risky investments.
            The best way is to wait for couple of months and ideally one should buy property in October when the price trends are more clear.

      • Muhamamd Anwar

        on   said 

        ok, u r posing the situation of year 2006, but at time, prices are not declining. in, actual, prices are increasing. yesterday, i just make a call to the dealer and ask to purchase a plot in 1-11 isb and i asked that i am non-filer and can not purchase a plot of cost more than 4 million. He straightforwardly replied that it is not my problem, however, price of a plot can not be lowered. If u find the actual data, prices are increasing day by day.

        Reply
        • Muhammad Anwar
          Dealers want to get commission
          Why they tell you that FBR will question a non filer in future
          If you think market is rising so buy property
          Even DHA Lahore, DHA Karachi, Bahria in Lahore, Karachi and Rawalpindi, DHA Bahawalpur, prices are falling.
          But if in some areas according to you property prices are increasing day by day then please cash the chance.
          Buy and sell at a profit.
          Best wishes

          Reply
          • M Anwar

            on   said 

            I THInk, aap ghusa ker gay, i just want to give my opinion.
            In DHA ISB, plot of 10 marla whose cost was 65 lakh in 2015-2016, now its cost is 85 lakh. then where is decline in property. There is no crash in property.

            We should accept the reality.

          • M Anwar
            Simple if you think prices are rising then buy to earn good profits.
            BUT FOR YOUR INFORMATION
            It was selling at 105 LAC in January 2018
            So a decline of 20 LAC in just 3 months.
            Average price was 40 LAC in 2013.
            The prices are moving back to same level.

    • paulo

      on   said 

      price of property will always go up in Pakistan —stock market in Karachi
      will be crashing. Invest in property instead of the stock market.

      Reply
  19. muhamamd azeem uddin

    on   said 

    Dear sir,

    kindly note down that Pakistan real estate sector and Pakistan stock exchange is working out of the laws of ECONOMICS.

    i am seeing their is so many comments about the new laws and it seems that every one would like to prices come down ,,,

    but follow my first comments that MARKET IS WORKING OUT OF ECONOMIC LAWS.

    any time any things will happen in pakistan,, i mean may be prices will increase much more ?? i think their is world record margin in pakistan property market i have seen last 1.5 years prices are EXPONENTIALLY increase i mean 3 hundred times,,,

    Their is no answer why ??? no country can grow whose economy base on BORROWING. No industrial activity, no jobs, export is going down, Then who is buying 200 sq/yard commercial plots RS 17 crore, 500 sq/yard home RS 8 crore and from where he is making money,, NO RECORD,, no one know it,, Because he need only 40 lakh and make existence all money park ,, what a country and what a security of money ,,,

    so a countries economy can not run like this, IMF also warn that AMNESTY is bad for economy because it dis heart honest tax payer people and boost bribery/ black money/ drugs and criminal ways to make money.

    Reply
    • Muhammad Moin
      DHA 11 Rahbar Phase 2 Extension Lahore is better. Another good option is Ivy Green DHA Phase 8 Lahore. These are the options you can even buy now as prices are already affordable so minimum price change is expected.

      Reply
  20. Misbah Ul Haq Syed

    on   said 

    Dear Malik Sahib,

    You seem to be giving honest and genuine opinions on real time basis related to the real estate matters. So, I have to ask you for your suggestions if you also spare a few minutes.

    Actually, this is related to DHA City Karachi. I have 02 plots of 500 Sq. yards and have been wanting to sell the same but the prices are going down on full speed. I am interested to know if and when there is a likely hood that the prices will go to its glory as it was in the mid of 2016.

    What is your anticipation related to bouncing back to the same level or more as there is a lot of potential because this housing scheme is just kicking off now and has a lot to offer. Currently, only 01 sector is open for construction. Some say that the Malir Motorway will be the game changer but on ground there is nothing.

    What is your opinion and professional advise on this matter.

    Thanks in advance.

    Kind regards, Misbah

    Reply
    • Dear Misbah Ul Haq Syed Sb,

      IMPACT OF INFRASTRUCTURE DEVELOPMENTS ON REAL ESTATE SECTOR

      In a normal property market development works boot the real estate prices. But when once prices start crashing nothing can stop it. This is because real estate sector greatly depends on the sentiments. When general perception is negative so prices will keep falling.
      As you have mentioned that Malir Motorway will improve the nearby real estate market, same things were heard about Lahore Ring Road Southern Loop from Ferozepur Road to ADA Plot. But unfortunately after the completion of SL1 & SL2 property prices have not recovered but still declining.

      WHY PROPERTY PRICES ARE FALLING IN PAKISTAN

      When property prices started falling back in mid 2016, people were of the opinion that higher taxes have caused the slow down. But it was not true. The real reason behind property price crash in Pakistan is the CRACKDOWN on black money. According to the government reports about 70-80% economy is undocumented. Where more than 50% of black money has been invested in reality sector. Now due to NAB laws and latest tax reform no one can invest black money in real estate sector. The declining investment in reality sector is the main cause of property price crash.

      PAKISTAN REAL ESTATE PRICE FORECAST 2018 & BEYOND

      Property prices in Pakistan are 25% down from the peak of 2016. The latest tax reforms have proved the last nail in the coffin. As non filers or people with black money or without a source of income cannot buy property worth above 4 MILLION PKR from 1 July 2018. This new law will impact in two ways;
      FIRSTLY the market of properties worth up-to 39 LAC will be strong without much price change.
      SECONDLY the market of properties worth above 40 LAC will crash as only those people can buy the high end property who can show the source of income.
      RESULTS:
      After 1 July 2018 property price will crash by more than 50%. This will be followed by many years of stagnation.
      WHY?
      When prices are artificially high without any real demand then crash is always harder.
      EXAMPLES:
      Recently FORBES Magazine has issued a report about home prices of different USA CITIES. According to the report home prices in most US Cities are still down from beak of 1998. In other words original price has not surfaced even after 20 years.
      As per GULF NEWS DUBAI real estate prices are still 30% down from peak of 2008.
      PAKISTAN FUTURE PRICE TRENDS
      In Pakistan we will see the same trends like hard price crash followed by many years of stagnation.

      WHAT YOU SHOULD DO

      This is even the right time to sell you plots to avoid the huge losses. As new laws will be applied from 1 July 2018. I know that it’s very painful to sell plots on loss but if you delay you will see the massive price crash.
      During property price crash of 2006, price of 1 Kanal Plot in DHA Phase 5 Lahore was 1.5 CRORE but after crash same plots were selling at 50 LAC.
      Just think the bigger picture. Small losses now very huge losses after 1 July 2018.

      YOU CAN STILL AVAIL GOOD INVESTMENT OPTIONS

      One real estate investment is always price crash proof. BUY TO LET INVESTMENT. Many people worldwide buy properties to rent them out. So I will say that you should sell your plots to avoid the further losses and invest in homes or commercial shops / showrooms. You can find many good areas which have high rental yield or returns.
      Ideally shops / rents will provide good monthly income.
      Buy shop or showroom in busy commercial centers for successful buy to let investing.

      WE SHOULD ALWAYS BE REALISTIC

      In our lifetime we have seen real estate as the best performing sector. Prices doubled in 3-4 years time. But things have changed now. Therefore we should act accordingly. If we will keep waiting that prices will soon recover, then we might lose the value. We have examples of USA & DUBAI Real estate Markets which have destroyed the investments.
      So act according to the situation. Sell properties and buy shops / showrooms for monthly income. According to the situation this is the best option.

      Regards,
      Team GHAR47

      Reply
      • Misbah Ul Haq Syed

        on   said 

        Dear Malik Sahib,

        Thank you for taking out precious time and replying to me so quickly in a very detailed manner.

        Let me think about the same. Your feedback is very logical and informative.

        Thanks once again.

        Kind regards,
        Misbah

        Reply
          • Misbah Ul Haq Syed

            on   said 

            Dear Malik Sb,

            You know there is tug of war between Bahria Karachi and DHA City Karachi projects since both fall within in the same vicinity i.e. 15-20 km apart. Earlier DHA City was leading then Bahria came in front and now it is a mix situation.

            However, some say that in case there are more sanctions or work stoppage by Supreme Court of Pakistan then DHA City Karachi may take the lead at least for the time being at least.

            What is your take on that?

            Thanks in advance.

            Kind regards,
            Misbah

          • Dear Misbah Ul Haq Sb

            I know these developments but you know that legal cases take long time to settle.
            Prices have started falling like dominoes on daily basis.
            It might be late after few months.
            This is still the right time to sell. I know that its hard to sell plots on loss but after few months you will appreciate you decision.
            Prices are not gonna recover in the near future.

            Regards,
            Team GHAR47

      • rizwan

        on   said 

        YES I AGREE WITH THE ADVICE… DHA CITY IS LOOSING HEAVILY IN KHI AS ONE OF MY RELATIVES HAVE 2 PLOTS OF 125 YARDS AND HE BOUGHT AT AROUND 52 LAC EACH OWN…. AND NOW HE IS UNABLE TO SELL EVEN NEAR 33 LAC AND HE IS DESPERATE TO SELL

        Reply
        • Misbah Ul Haq Syed

          on   said 

          Rizwan sb,

          Can you give me the contact details of your relative. I will ask my friends if someone would be interested to buy.

          Thanks in advance.

          Kind regards,
          Misbah

          Reply
      • paulo

        on   said 

        In your home page –ad in Islamabad for a property is going for
        90 million Rs. The prices are going up — not coming down

        In Karachi civil line area — 2500 sq feet flats are been sold like
        hot cake — all been sold at a price Rs. 60 million.

        FBR is the most corrupt gov org.

        Reply
      • Muhamamd Anwar

        on   said 

        Sir, in actual, this is not true. In jinnah garden isb, price of a 12 marla plot was 52 lakh in year 2016, now its cost is 65-70 lakh, how u can say that there is crash in property.

        Give us the examples of 2016-208 with data not with words.
        Decisions are always made on real data

        Reply
      • Shahzad

        on   said 

        Assalm o Alaikum sir. Hope u r doing well sir.
        Regarding your suggestion that buy shops or houses and rent out. What about prices for house or shop prices will not go down ? New laws will not effect. And also what is your openion regarding rents will decline or remain same due to new laws as per your discussions property rates will come down.

        Reply
        • Shahzad
          Rents will fall but not with the same ratio as prices. When every property prices crash, the only way to hedge money is to rent out properties. It will give you constant monthly income and this income covers the price decline.
          TWO EXAMPLES
          A person buys a plot of 3 crore. Price will decline and remain stagnant for example 5 years. So plot buyer will just sustain the losses.
          On the other hand a person who bought a house or shop of 3 crore and rented out. He will recover 30-40% investment in form of rent.
          So comparatively renting is the only best option even when prices fall.

          Reply
  21. Ali

    on   said 

    Sir could you tell how much should one pay now for a brand new house or less than 5 years old or more than 5 or 10 years old house in DHA Karachi phase 5,6 and 8 thank you

    Reply
      • Rizwan
        Before the property crash of 2006, 1 Kanal / 500 sq yards residential plot price in DHA Lahore was 150 LAC OR 1.5 CRORE. After the crash it was selling at 50 LAC.
        So price fall of 65%. Now situation is even worst as new tax reforms will totally flush out the black money from real estate sector.
        1- This will be the biggest real estate price crash in history of Pakistan
        2- Many decades of price stagnation
        In many USA cities property prices are still down after 20 years. 1998 crash prices have not recovered.
        In Dubai real estate prices are still 30% down from the peak of 2008. So 30% loss even after 10 years.
        Same pattern will be repeated in Pakistan and I think worst than the above cases.

        Reply
        • DHA LAHORE DEALER

          on   said 

          Why team GHAR47 is against real estate agents. Ap kun hamare dushman ho
          Ham bhee insaan hain hamre bhee zarooratain hain.
          Dealers ke bare main bhee likhain un ka acha time kab start ho ga.

          Reply
          • DHA LAHORE DEALER
            This is totally wrong. Team GHAR47 is not against real estate dealers but they are their own worst enemy by misleading the customers.
            I know the suffering of dealers but its only due to the high property prices. High prices have made real estate out of the reach of most people due to which transactions have reduced.
            GOOD NEWS FOR DEALERS
            From 1 July property prices will start falling due to which real estate transactions will increase. So dealers will see the rise in their incomes.

    • Ali
      While assessing the house price you need to consider the few things;
      1- Construction cost is same. For example one build house of 500 yards in DHA and other in low area the construction cost of same category will be approximately same.
      2- Price of land or plot is different in different areas.
      PRICE FALL DUE TO NEW TAX REFORMS
      As non filers cannot buy property worth more than 4 million so luxury real estate will be hit hard. We will see the massive price fall in the coming months especially after June 30 2018.
      So if the current price of 500 sq yards house in 8-10 CRORE
      After the fall price will be 4 crore
      Its better to wait as we will see the biggest crash in history of Pakistan.

      Reply
    • Zahid Ali
      Excellent sharing. FORBES always presents the top lists and comparisons.
      Many cities in USA have seen the biggest price crash. And prices are still down after 20 years. 1998-2018.
      Same is true for DUBAI where real estate prices are still 30% down from peak of 2008.
      PAKISTAN WILL SEE THE SIMILAR TRENDS
      The peak prices of 2016 will not be observed in many decades.
      Pakistan will witness the biggest price crash of its history followed by many years of stagnation.
      What we have seen in USA & DUBAI is the speculation which resulted in high price and decades of stagnation.
      PAKISTANI CASE IS NOT DIFFERENT

      Reply
    • Muhammad Anwar

      on   said 

      Dear sir,
      thansk for enlighten the property market, but what will happen after 1st july, if the new govt cancel this law.

      Reply
    • Muhammad Anwar

      on   said 

      Dear Zahid,
      attached link showing the prices decline of USA real state market, bit in Pakistan, prices are going high n high.

      Dear, can u give similar data related to Pakistani market.

      Reply
  22. Muhammad Ibrahim

    on   said 

    The impact of declaring value at market price means the exclusion of investors who park their black money in real estate luxury market such as DHA, Malir Cantt, etc. but it will not largely affect Bahria Town, since the property is still not sub-leased and it is on builder transfer. Further, reason is that non-filers will not be allowed to buy property worth PKR 4 million or above, so investors will park their money in foreign currencies.

    Expected decline in luxury market price (where demand is not actual, people buy property for park their funds rather than living purpose) by 25% in next 03 months.
    By high-rise ban, buildup properties demand will increase due to which house price will also increase, where people mostly buy properties for living purpose.

    Govt. shall have the right to purchase properties within 6 months.
    • 200% of its declared value of properties registered in 2018-19
    • 175% of its declared value of properties registered in 2019-20
    • 150% properties declared value of properties registered in 2020-21

    Black money will still enter in to the market in a different way. The process is simple post June 2018 e.g. a property is bought at a price of 50 Million, but the value can be declared 30 Million because if government wishes to buy as stated they have to pay 100% more on the declared amount which will obviously be higher than the actual amount. Therefore, the government wishes the people declare value in 2018-19 at least 50% of its original value, to declare value in 2019-20 at least 57% and to declare value at least 67% in 2020-21.

    Abad Association has already welcome this amnesty scheme because it will restrict investor to invest in land, rather than investors will be persuaded to invest in buildup properties and also park their funds in builders projects.

    Further, the prices of land will continue to fall and builders can now buy the land at reasonable rates since they can now launched a project at reasonable price, which include land and construction cost.

    Reply
    • Muhammad Ibrahim
      Thanks for very detailed analysis
      As you said that people can still declare low property value. For example property is worth 5 Million but value declared is 3 Million. Yes if government buy within 6 months it has to pay 6 Million. But if government will buy property after 2 years it will just pay 4.5 Million. So owner will sustain the loss of 0.5 Million.
      Lets see how current laws shape the property market in near future. But one thing is obvious that black money will be hit hard. The biggest victim will be the high end luxury real estate as non filers cannot buy property worth 4 Million or over.

      Reply
      • Muhammad Ibrahim

        on   said 

        Govt. just have the right to buy the property within 06 months from the date of registration of property as per the tax reforms

        Reply
    • Muhammad Moin
      Tax reforms have great impact on real estate prices.
      For buying property;
      You can buy properties worth less than 4 Million as price will not be affected by the new laws.
      But don’t buy property worth more than 4 Million as chances are high that prices will fall sharply after 1 July 2018.
      This is because of new law that non filer can’t buy property worth over 4 Million.

      Reply
        • Muhammad Moin
          You can buy if you want. But ideally you should wait for 3-4 months when prices will be lower.
          Keep in mind that present tax reforms will be applied from 1 July 2018. So chances of price fall are greater. There best option is to wait.

          Reply
          • Jahanzeb

            on   said 

            Malik sahib. What is your advice on purchase of dha bahawalpur 1 kanal file which is around 27 lack now a days and development is going on. Please advice should we move in as its already at alower side. Pl. Share some insight on this. Thanks

          • Jahanzeb
            Yes prices of DHA Bahawalpur File are record low at the moment.
            You can invest in it but just keep in mind the two factors;
            1- It is a long term inevstment
            2- It will take longer time to be fully developed
            3- It will take longer time to be fully inhabited
            4- Prices will not increase in near future
            5- Invest only if you can hold for 4-5 years
            6- It will provide good profit to only those investors who will invest for long time period.

          • Jahanzeb

            on   said 

            So despite installment fully paid in jan.19 it will remain on lower side. If they ballot and allow possession in first quarter of 2019 still you think we will not be able to get 38_40 lack which is booking price?

          • Jahanzeb
            Price might recover to the original launch level. But massive gains are not expected. Reason is that how many people from Bahawalpur have bought plots in DHA Bahawalpur. Mostly investors from Karachi, Islamabad and Lahore hold the plots. Their purpose is to earn good profits not to build houses for living.
            We should know that speculation is decreasing day by day due to crackdown on black money.
            This is why I has told you to invest for 4-5 years for better returns.
            Stable price rise will be observed when people will start building homes.

  23. Hasan

    on   said 

    The new policy has simply taken the wind out of protests by Real Estate agents. Ostensibly, their main grievance had to do with ‘high taxes on transactions’ due to which number of deals had dwindled to a mere shadow of their former levels.

    Now taxes have not only been lowered but also simplified.

    However, it was common knowledge that property slump had very little to do with taxes and just about everything to do with ongoing crusade against black money. But real estate agents simply couldn’t block Mall Road with a rallying cry to let tax evaders, smugglers, and corrupt people with illegal money — continue to roam free & let them churn out transaction after transaction serving interests of hoarders of illegal wealth & money launderers. Such a banner wouldn’t be palatable for public consumption. But unfortunately for them, that’s where the issue really was.

    There is an amnesty. But it’s unlikely that it’s going to help property matters. Very few people would avail it. The majority of the corrupt platoon always stays away believing that it’s nothing but a trap. That added to the clauses about filers & non-filers, and the threat to forcibly buy property at under-declared values, basically spell doom for the sector.

    Granted, exactly how the various elements of new policy shall play out, is in realm of speculation. Still, a little bit of crystal ball gazing could be indulged in. Broadly speaking, the artificially high values of luxury properties would very likely be hit hard. Now, not only would there be a correction in terms of time (when prices remain nominally static over time) but also even the nominal prices have a high probability to start falling. Double jeopardy. Coupled together, it’ll be akin to that dreaded word speculators are so vary of … i.e. crash.

    Whatever the cement cost, labour cost, land cost, taxes (both formal & chai paani variety) … that developers cite in defense of high prices and not being able to lower prices beyond a certain point — won’t matter now. They shall simply have to take losses and get out while they can. Why? Two related things:

    1/ The country is changing for the better. In general, negative forces are increasingly being cornered. Means black money that helped fuel 80-90% of high end property deals, shall cease to be a factor

    2/ We do not yet have a developed mortgage market. Given that most deals are conducted in cash, without black money to jack up prices, white money would only go so far.

    Hence, some small & weak developers and also people with black money invested in property shall want to get out with their shirts still on; the latter category more so because waiting for old glory days might mean being hauled off to jail in a changing environment.

    In short, market values shall be going down. Here’re some predictions for Karachi’s DHA Phases 5 & 6:

    Brand New 500 square yards houses –> PKR 6.0 crores

    5 -10 Year old 500 square yards houses –>PKR 4.5 crores

    10+ Year old 500 square yards houses –> PKR 3.0 crores

    It is pretty much a 50% fall from current levels (levels that the real estate agents would have us believe are the ‘market’) .This type of crash may appear like a wish list given the high input costs (specially of land). One could exclaim that even some high-end apartments in Clifton & Bathisland are more expensive than the levels for independent houses depicted above. However, it is felt given the fast changing environment these levels are where the real & white economy shall come to settle … until a time in future when all the other elements of the country are also in line with how things work in developed countries.

    In the meantime, good luck to sellers and agents trying to sell their stock of over-priced luxury property. For the most part, the only way those who need to sell would be able to find buyers – in the absence of a mortgage industry as it exists abroad – would be to lower prices to levels that prevailed several years ago & make reasonable sense in terms of white money.

    Reply
    • Hasan
      Many thanks for the detailed analysis about Pakistan Real Estate Sector.
      I would like to add few words;

      1- TAXES OR CRACKDOWN ON BLACK MONEY? WHAT MATTERS MOST
      Dealers in Lahore told me that they are going to Mall Road to protest the higher taxes. I told them that its useless as the higher taxes are not the issue as in Europe taxes are high but still property prices are on rise especially if we see real estate trends in London. I told them that real issue is the crackdown on black money due to which investments are decreasing. Now after the tax reforms real estate dealers admits that real cause of low transactions is the crackdown on black money.

      2- BUYERS VERSUS SELLERS
      If we see the market trends on thing is clear that there are only desperate sellers but no buyers. Sellers are of 2 types. The seasoned sellers who have seen the property crash of 2006. Other are the ordinary sellers. Ordinary sellers want to sell properties at profit. But seasoned sellers know that game is over and its better to sell now at loss otherwise after 6 months they have to sustain the heavy losses. On the other hands buyers are in watch and see mood. They call the sellers and put very low offers. Only those buyers are buying the properties who get at low price or investors rates.

      3- AVAILING AMNESTY SCHEME
      History shows that all amnesty schemes have failed. Property tax amnesty scheme was offered on 30 November 2016. No few people availed it. Same fate awaits the current amnesty scheme. Most people think it another trap. Duration of the amnesty scheme is an issue. And NAB can trap the beneficiaries of amnesty scheme as they will get the lists.

      4- WATCH MARKET AFTER 1 JULY 2018
      The new tax regime will come into effect after i July 2018. This is the time when we will see the bloodbath of high end properties as non fillers can’t buy property worth 40 LAC or above. This will totally crash the property market. Pakistan real estate sector is alcoholic of black money. Without black money which is the major source of investment in real estate sector we will see the hard price crash.

      5- FAIR PROPERTY MARKET
      Pakistan is moving towards fair property market. Now onward only those people can buy property who are tax payers. Now property is for living or establishing a business. Day trading and speculation will cease. This will help the genuine buyers as they will get the properties at low price. Home ownership will rise. Renters will decrease.

      Reply
  24. Nazir Ahmed

    on   said 

    No doubt, Ghar 47 team always encourage us and update us about the prices of Property. No of adds we are now watching on different pages about selling of flates/home. It is the symbol, now the seller fining the buyer, it is true, artificially created the demands of flates/homes.

    Literally i am very happy for the govt decision, lot of poor peoples will enjoy and get benefits from these decision, it is all credit goes to PML N govt, although i am not a supporter of PML N, but the tax ordinance decision is in favor of common man and now common man will receive lot of benefits from the same.

    Thank you Ghar 47 team.

    Reply
    • Nazir Ahmed
      Condition of market can be best assessed by the launch of new projects. Currently the launch of new real estate projects is record low. Even many builders have started renting their completed projects due to no buyers in the market. Construction activities have stalled.
      One of dealer I know told me that non of hid deals have matured in the last 1.5 year.
      Other dealer has seen no income since December.
      One guy is trying to sell his home in Ex Park View DHA Lahore for 4 Crore 2 years before. He has reduced the price to 3.5 crore but still no buyer.
      NEVER UNDER ESTIMATE THE DUBAI STYLE REAL ESTATE FALL IN PAKISTAN
      Pakistan real estate sector is now facing the Dubai style crash. In Dubai prices are still 30% down from peak of 2008. So investors are still in loss even after 10 years.
      Pakistan real estate sector will see the same trends. Hard crash followed by many many years of price stagnation.

      Reply
  25. Rizwan

    on   said 

    https://www.facebook.com/RupiyaPaisaAbbTakk/videos/2061458237203233/

    Gud news for genuine buyers everyone plz watch this link… en member fbr prediction that priperty will fall around 50% while hosts also says k yeh ziadti hai k ina third world country prices of property r soo high that no aam admi can buy… in sha Allah everyone will b able to buy their own home…

    N thx Ghar47 for speaking The trucyh abt property and giving hope to ppl…many websites only promote agenda of propety agents or mafia

    Reply
    • Rizwan
      It was only GHAR47 that started raising their voices against high property prices and telling everyone to stop buying. After reading our predictions now everyone is saying the same.
      RIZWAN
      You are among few readers who always trusted us and regularly added your views to this blog.
      Among the first articles of GHAR47 one was that GOVERNMENT SHOULD GIVE FREE HOMES
      Now politicians have started to discuss these issues.
      50% Price crash was according to normal situation.
      As now situation is even worst
      so more than 50% price crash from peak prices of 2016.
      HOMES ARE NOW FOR LIVING NOT TO WHITEN THE BLACK MONEY
      END OF DAY TRADING IN REAL ESTATE SECTOR
      END OF HIGH PROPERTY PRICES
      ONCE AGAIN HOME OWNERSHIP WILL INCREASE IN PAKISTAN
      DECREASE IN HOMELESSNESS

      Reply
      • Rizwan

        on   said 

        In sha Allah may ALLAH GIVE AJAR TO U OF UR EFFORTS AND IN SHA ALLAH MAY ALLAH GIVE MY OWN HOUSE TO ME AND FOR EVERYONE WHO IS LIVING ON RENTS

        Reply
        • Rizwan
          We need to increase the homeowner ship and decrease the homelessness in Pakistan.
          High property prices results in homelessness as many people even can’t afford to rent homes.
          Hope the new tax reforms will provide the relief to home renters as they will be able to buy own homes due to the property price fall.

          Reply
  26. Asad

    on   said 

    What will be the effect on property market particularly on the houses in established areas as supreme court imposed ban on sub lease and high rises

    Reply
    • Asad
      By high-rise ban land demand will increase due to which house price will also increase.
      But overall prices of luxury market will decrease as non fillers cannot buy property over worth 4 million

      Reply
      • Asad

        on   said 

        Yes! you are right that plots prices will increase. I think prices of already built houses in established areas will decrease. correct me sir if i am worng

        Reply
        • Asad
          Thing have changed due to the latest tax reforms. As non filers can’t buy property worth more than 4 Million PKR. This will change Pakistan real estate sector in two ways;
          FIRSTLY the demand for properties worth up to 40 LAC will increase.
          SECONDLY the demand for properties worth above 40 LAC will decrease.
          Market is already adjusting to the new changes. We can see that prices are falling day by day. For example file prices in DHA Bahawalur and DHA Multan are record low.

          Reply
  27. Zohaib Ahmed

    on   said 

    Black money will still enter in to the market in a different way. The process is simple post June 2018 e.g. a property is bought at a price of 10 Million but the value will be declared 5.2 or 5.3 Million because if government wishes to buy as stated they have to pay 100% more on the declared amount which will obviously be higher than the actual amount. Its a game that’s played by these crooks from ages.

    Now, point 2 previously overseas Pakistanis had to file taxes with zero returns on foreign income. But with this ordinance any oversea Pakistani with no NTN had to pay 2% to 5% on all of his savings in and outside of Pakistan. Its an irony as most Pakistanis living outside are non-filers.

    Reply
    • Zohaib
      Government will wait. Government will start buying in 2020-21 when they have to pay 50% higher value. Very simple
      Overseas Pakistanis are non filer. Yes
      Government should given incentives to Pakistani expatriates as they are the backbone of our economy and send $20 billion remittances each year.

      Reply
  28. Ahmad

    on   said 

    “Non filer can not buy properties over 4 million ” . My question is that those people who live abroad and earn money outside like in middle east so they also can not buy property because in my understanding they will be considered as non filer. Please advice.
    In last paragraph, it is typo mistake instead of 40 million I think it is 4 million.

    Reply
    • Ahmad
      My mistake, I have corrected it, many thanks for pointing the right figure 4 Million
      Yes its true
      Even Pakistani expatriates have to be filer otherwise they cant buy proeprty
      THIS TAX REFORM WILL PROVE TO BE A BLOODBATH FOR REALITY SECTOR
      Since last 1 year team GHAR47 has made it clear that game is over for property speculation but very few people understood it.
      PAKISTAN HAS NO MONEY
      ONLY WAY TO COLLECT IS TAXES.
      SO BIG CRACK DOWN ON BLACK MONEY

      Reply
    • Ahmad

      on   said 

      One thing is for sure that it was Ghar47 team who pointed out about real estate crash last year. I was little bit skeptic at that time since all other “reliable” websites and estate agents were telling something else. Kudos to your team for right prediction and keep up good work.

      Reply
  29. Muhammad Ibrahim

    on   said 

    The property price will decline only for the leased and sub-leased property because the govt. has record for leased property, whereas the builders projects which is mainly on the transfer letter issued by the builders will not have any impact of this policy such as Bahria Town etc….

    Reply
    • Muhammad Ibrahim
      Government has every record about leased and sub-leased properties
      FBR will collect taxes from builders according to the total worth of their projects
      Builders will also show the total price of property that is leased and sub-leased
      So NAB / FBR can easily trace the detail of any transaction

      Reply
      • Muhammad Ibrahim

        on   said 

        The builders will give the original price of the plot but the actual market value is far more than that and How FBR will determine the market price and how FBR will pay the huge amount in terms of property while purchasing the property because they need cash in their accounts and our budget is already in deficit for last 25 years and they do not have funds to buy the property 100% higher than the declared value

        Reply
        • Muhammad Ibrahim
          Government can do a simple thing
          Buy the undervalue property say 50% undervalued
          Government sell it at 10% less than market value
          Government will get cash and will pay the owner.
          The main aim of this clause is not to grab the properties but to discourage the undervalue registration culture.

          Reply
  30. Nazir Ahmed

    on   said 

    Dear Readers,

    Although all decisions of Govt can not be in favorable for every one however, the yesterday’s decision (Taxes, amnesty schemes and regularization) are in the favor of common man and for tax payers. Poor man did not imagin to buy a 2 bed DD on this market condition, real estate market is totally working on speculation and fraud with innocent peoples.

    Hope, the property prices will be declining and take position according to demand and supply.

    As per my opinion, i am happy for this decision, Ghar 47 team, please enlighten few words

    Reply
    • rizwan

      on   said 

      i agree with u…. that there is a big chance that property will fall majorly now after this amnesty clause where by govt can buy your property if under declared…. in sha ALLAH now genuine buyer will have hope that property price will crash as previously prices were soo high no one can even think of buying anything

      Reply
      • RIZWAN
        You might have seen yesterday on TV the dealers protest on MALL ROAD LAHORE
        One of my friends was there
        He is a real estate agent of DHA LAHORE
        He was arguing that biggest problem to reality sector is the HIGH TAXES
        I always told him that this is not the case
        The real issue is the crackdown on black money
        NEW TAX REFORMS HAS DESTROYED THE FINFLUX OF BLACK MONEY
        EVEN NON FILERS CAN’T PURCHASE PROPERTY WORTH 4 MILLION
        So where black money holders will invest? At least not in reality sector
        BIG PROPERTY PRICE CRASH IS COMING

        Reply
    • Nazir Ahmed
      It was only GHAR47 that raised the voice for common PAKISTANIS.
      We are always against the high property prices.
      High property prices serve few people whereas majority of people suffer as they have to live longer on rents.
      GHAR47 ALWAYS PROPOSED THE 1% TAX. LOOK LIKE GOVERNMENT HAS GOT THE POINT.
      PAKISTANIS HAVE THE RIGHT TO DISCUSS GOVERNMENT POLICIES.
      SOME LIKE GOVERNMENT WHEREAS OTHER DISLIKE, IT DEPENDS ON PEOPLE
      BUT
      GOVERNMENT POLICIES ABOUT TAX REFORM SINCE 2016 HAVE HELPED THE ORDINARY PEOPLE TO DREAM ABOUT PROPERTY AS PRICES STARTED FALLING SINCE 2016.
      THE CURRENT TAX REFORMS ARE BEST IN HISTORY OF PAKISTAN AS MADE VERY SIMPLE.

      Reply
      • Nazir Ahmed

        on   said 

        GHAR47 Team, can you guide us when we will see the declining in property prices and what is the right time to purchase flat/home for living purpose after implementation of tax reforms.

        Reply
        • Nazir Ahmed
          It will take 4-6 more months. Many things will be clear after election. So its better to wait. By fourth quarter prices will be record low, the time to buy property.
          Price fall is a long process. Property prices are 25% from peak of June 2016. But now after these tax reforms prices will fall much faster.
          Meanwhile GHAR47 will keep writing about the price fall trends.
          I WOULD ADD TO LIKE FEW MORE WORDS;
          OPTION (A) PROPERTIES WORTH LESS THAN 40 LAC
          You can buy anytime as demand is strong and chances of price fall are very low
          OPTION (B) PROPERTIES WORTH MORE THAN 40 LAC
          You should wait as prices will fall sharply according to the new law.

          Reply
  31. rizwan

    on   said 

    DEAR GHAR47
    ALTHOUGH IM AGAINST AMNESTY SCHEMES BUT IN THIS AMNESTY IF PROPERTY IS MADE ON MARKET VALUE THAN THIS WILL CRASH THE PROPERTY MARKET IN SHA ALLAH WHICH IS A VERY GUD POINT…I HOPE THIS CONDITIONS STAYS AND PROPERTY CRASHES SO THAT GENUINE BUYERS WILL BENEFIT FROM LOWER PRICES AND THIS AMNESTY….

    THIS IS A GOOD MOVE BY THE GOVT WHERE BY EVERYONE WILL DECLARE ACTUAL MARKET RATES AND PROPERTY CAN ONLY BE BOUGHT BY WHITE MONEY OTHERWISE IF UNDER DECLARED THE GOVT WILL BUY BACK YOUR PROPERTY

    GR8 MOVE BY GOVT ON THIS CONDITION DAYS OF PROPERTY BOOM R OVER

    Reply
    • RIZWAN
      Undervalue registration was one of the major causes of undocumented economy. 50% investment was only in reality sector. This move is to bring the shadow economy into real economy.
      4 MILLION CASE to purchase property: WHAT I UNDERSTAND
      By this point government has made clear three things;
      First; no more black money investment in real estate sector
      second; owning a property is a privilege. So only those people will be privileged who contribute to the national revenue.
      three; property is for living not for speculation
      SO END OF PROPERTY SPECULATION. END OF SATTA CULTURE. DAWN OF NEW EAR WHERE HONEST TAX PAYERS WILL BE REWARDED.

      Reply
  32. Muhamamd azeem uddin

    on   said 

    Dear sir,

    pakistan can only be a progressive country if we can convert this country in industrial and agriculture manufacture based country.

    unfortunately it has been seen that during last 15 years the government have no focus , Realty sector is giving REMARKABLE/ ABNORMAL return , the result is that people of pakistan have left hard word and uses their brain , mostly of them just passing time on gossiping in tea shop , having late night go to bed , it was a practice and THIS HAS RUIN the GDP growth.

    now pakistans reserve is just narrow to COMBODIA,, and INDIA have 400 Billion.

    I think we have only 2 years more, if MONEY returns to both of the sector then pakistan once again can stand on foot, otherwise pakistan has nothings PRODUCT TO SELL / EXPORT OTHER countries, and our import will crosses 75 Billion dollar and Debt crosses 200 Billion.

    And nation of pakistan will be one of the POOREST in the region.

    so i think it is very good decision of government to take pakistan one of the great nation in the world industrial and manufacturing.people of pakistan is talented just need to direct them in right ways..

    Reply
    • Muhammad Azeem Uddin
      I agree that we should invest in businesses as they create jobs.
      Goods production and export will increase or national revenue and we also have to import less.
      This is the main aim of government by this amnesty scheme.
      To reward the tax payers. To divert investment from real estate sector to other more job creating sectors.
      Many experts believe that real estate sector creates no long term jobs.
      HOPE THINGS HAVE STARTED MOVING IN THE RIGHT DIRECTION.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *