Pakistan property market condition now
Real estate activities in Pakistan were almost stalled after the property tax amendments 2016-17. Property prices also saw major setback, as new laws required the source of income by FBR. Blockage of black money was like deathblow for real estate sector. But after protests of real estate agents, government introduced the property tax amnesty scheme in late November 2016. Let’s discuss the property market situation now.
Different views on property market situation
Estate agents and sellers views:
Estate agents and sellers have good perception about the real estate market situation. According to them market is getting better day by day and there will be gradual price rise in the coming months. Estate agents and sellers think that investors are afraid of tax amnesty scheme as a trap. Once they are assured that its real, investors and buyers will jump to secure hot properties.
Buyers and investors views:
Buyers and investors are in wait-and-see mood. According to this group prices are stagnant and they have many options in the market. They just need more time to buy properties at low prices so they can benefit in the near future. This group is waiting for the desperate sellers to reduce more prices.
We can see many real estate property projects in major urban areas of Pakistan. We can also see many uncompleted projects and launch of new projects is record low. According to the developers, there are inquires about the projects but sale volume is low. Many developers have decreased the property prices, but still no rise in the number of buyers.
What is really happening in the market?
40-50% estate agents have closed their agencies nationwide, as Pakistan property sector is stagnant at the moment. In some areas we can see rise in the asking prices. But actual sale price is much lower than the asking price. Many new projects by top developers are unable to uplift the property market. Small size and cheap properties of worth 50 LAC or less have large pool of buyers, but high end expensive properties are unable to attract the buyers.
Houses sizes are shrinking in Pakistan
House size shift is also underway in Pakistan. Whereas flats are retaining their charisma as flats are always sold out by number of rooms or beds. House size up to 250 square yards or 10 Marla has high demand but above that is getting low attraction. Unaffordable house prices will definitely reduce the house sizes in the coming years as builders know where market is heading for.