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Pakistan Real Estate Forecast 2019

Pakistan Real Estate Forecast 2019:

The year 2018 was like a nightmare for Pakistan Real Estate Sector. Property market was in constant decline due to the new property laws, political instability and economic meltdown. The situation is still the same at the dawn of 2019. This blog is written after knowing the views of realtors, buyers and sellers about future of Pakistan Real Estate Market. Here is Pakistan Real Estate Forecast 2019 Market Analysis that will help everyone in making the right decision about buying or selling the properties.

Pakistan Real Estate Sector is in decline due to low investments:

Real estate sector works on a simple fundamental called as demand and supply. Demand shows the volume of investment whereas supply shows the property stock. The volume of investment in reality sector increases or decreases the demand. High volume of investment in real estate sector increases the property demand that results in high property prices. But low volume of investment decreases the property demand and results in low property prices. Currently there is low property demand in Pakistan as few people are willing to invest in real estate sector. There are many factors that have diverted the investments from real estate sector;

Inquiry of FBR/NAB about source of income

Property buying restrictions for non-filers

Heavy fines on registrars to process the files of non-filers

Foreign Pakistanis restricted to transfer funds before 60 days of purchase

Government’s buying back scheme for properties registered at low rates

High Interest Rate has forced the people to deposit money in banks

Fear of losing money due to the property scams; housing schemes scandals

Start of 5 Million Affordable Homes under NAYA Pakistan Housing Program

Due to the political instability property investment is drying up

Rupee under pressure as economy is in decline

Current Property Market Trends:

BUYERS are waiting for the right time to buy properties due to two major reasons. Firstly buyers want to see the outcome of NAB’s investigation of illegal housing schemes. Secondly buyers are waiting for the property prices to bottom out so that they can buy properties at very affordable rates.

SELLERS are of three types. In first category are the sellers who have the holding power and can wait to find the suitable buyers. In second category are the sellers who need cash and are willing to sell properties at loss. In third category are the experienced sellers who know that prices are falling so they are desperate to sell properties immediately to minimize the losses.

REALTORS are in worst situation. 40% estate agents have closed their agencies because of record low incomes. The realtors who became investors have sustained huge losses. Even many have even sold out their cars and homes. Everyday realtors are switching to other businesses due to the disappointing situation of real estate sector.

Future of Real Estate Market:

Pakistan real estate market is witnessing the worst situation since 2005. Property transactions are record low as compared to the peak of 2016. Rising interest rates have greatly reduced the investment in reality sector as people are depositing money in banks to hedge it against inflation. 2019 will be one of the worst years for property sector as economic condition, rising interest rate and strict black money laws are enough to keep the market subdued. Many realtors expect big price fall if situation remains the same.

Pakistan Real Estate Forecast 2019 Analysis; PRICES:

Since 2016 property prices are in constant decline due to economic uncertainty and strict laws to control black money. Prices are already 35% low from the peak of 2016. If we observe the decade property cycle then real estate prices will be record low in 2019 as were in 2009. Pakistan property market situation is similar to Dubai real estate sector where prices have crashed by 75% due to the new laws about sharing the information of investors. As Pakistani property market was also alcoholic of black money, so in the presence of current strict laws prices will further decrease. Estate agents expect another 35% price fall from peak of 2016, if government fails to offer another PROPERTY TAX AMNESTY SCHEME.

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13 Comments

    • Nadeem Zahar DHA Dealer
      LETS SEE; What Is 2019 Offering to The Future of Pakistan Real Estate Market.
      Yes if we observe the decade real estate cycle then 2019 will be the year when property market will be down in Pakistan as was in 2009.
      Interest rates were high in 2009 and so are expected to remain in double digit in 2019.
      Interest rate always decreases the property prices and vice versa.

      Reply
  1. We have been looking for a 500 yard plot in Khi DHA or house but the asking price for a house is still 10 and plot 5c
    When will the price come down and how much do we expect the price of 10 c house to come down to
    Everyone says that the prices will not come down even the rents are still high

    Reply
    • Ali
      Wait is better as interest rate is constantly increasing.
      High prices are just the tactics of dealers otherwise property prices are under pressure due to low demand.
      Hard to find filer buyers at the moment.

      Reply
  2. Manzoor hussain

    on   said 

    Sir
    Many thanks for the accurate analysis and forecast of Pakistan Property Market in 2019.
    Your analysis about real estate prices is much appreciated.

    Reply
    • Manzoor Hussain
      PAKISTAN REAL ESTATE FORECAST 2019 – TRENDS ANALYSIS PREDICTIONS FORECAST;
      This blog is written after discussion with real estate dealers.
      Their first hand knowledge about property market, buyer and sellers is valuable.
      I have never seen dealers as disappointed as they are now.
      Many top brands have closed their agencies recently.

      Reply
  3. Nadeem Zahar DHA Dealer

    on   said 

    GHARR7 Team
    Also write about our problems.
    We dealers are in very bad situation.
    Dealers are closing offices everyday because of record low incomes

    Reply
  4. muhamamd azeem uddin

    on   said 

    Dear malik sahab,
    The article you have write is quite good and knowledge based according to to economic laws but can not support ground realities and practical plan of action.

    i mean their is no reduction of 35% price at all if i talk about karachi. Though PKR are being devalued 35% and those perople who have deposit their money in bank or they have their money in circulation they have lost 35%.

    If someone want to buy property either plot or home the prices are jumped 20% more from last 3 months.

    i have meet many real estate agent and all of them having same views that their is no chance to go price downward , price could stagnant but can not go downward.

    when i have told all these what you have write in article then real esate agent just laugh and have said me that during last 10 years property prices hike not come down. In Pakistan people are crazy to buy the land and their is no comparison the rate of return from real esate business. so retailer, wholesaler, dealer, distributor, indenters, manufacturer, and traders, all have invested in property market and they are just running their existence business. They are not reinvesting the money of their existence business because all of them think that they can make more money on real estate business as compared to their existence business.

    Yesterday i have meet one big builder who told me that WHATEVER PRICE THEY ASK PEOPLE ARE READY TO BUY.
    it means their is big demand in the market and builder are making money. The builder have a factory of textile and now he has closed it. He also told me that the money he has make in real estate just 10 years he can not make money to run textile mills even in 30 years.

    Any way lets see what happen in future.

    Reply

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