Property is by far the most dynamic and ever-changing playing field. It not only feels the impact of a roadblock, but it also feels the impact of decreased exports. Having said that, it is important to keep up to pace with the happenings in the market.
Read on below to find out how you can become property savvy just by focusing on some of the key indicators of the market.
Living expenses
The easiest thing to keep a track of are the living expenses one incurs. These can be good indicators of how the property market is doing.
If the living expenses rise faster than the increase in the salaries, it could mean that the banks have loosened their lending policies. It could also mean the inflation rate will rise. On the contrary if these are balanced, then the market is in balance – something which is favourable for everyone.
Interest rates
Another factor that can make you that much aware of the market includes the interest rates. If the interest rates increase, mortgages and loans become difficult to manage and would normally translate into the demand for new housing going slightly down.
On the contrary, low interest rates signify a positive trend in the realty market. This means that mortgages and loans become affordable and a lot more people can then buy the property they wanted.
Construction
This is another factor that plays an important role in influencing the property market. One should be aware of the rates of construction going for various projects in the city. Not only that, one should also be aware of how many and what type of projects are currently being worked on, as stressed on by Azeem Javed of Javed Enterprises.
For example, improving infrastructure means better and easy access to various places. This results in increased prices of the surrounding areas, which eventually translates into gated communities opening up. This means an influx of skilled labour and job creation and so on.
Foreign Direct Investment
A statistic that is easily available online, this can single-handedly influence the market. Often, there are strategic partnerships that take place between countries in order to strengthen their trade and diplomatic ties, which results in a lot of Foreign Direct Investment (FDI).
Such things are often in the form of setting up manufacturing units or establishing economic zones, trade routes, and so on. These greatly influence the market since any such development follows the same trend as the increase in construction activity, though on a far greater level.
Taxes
The most important of them all and by far the most ingrained attribute that can clear doubts about a lot of things. Taxes play an integral role in the overall property market. Since there are multiple form of taxes such Capital Value Tax, Capital Gains Tax, Property Tax, Stamp Duty etc., these can greatly influence the end price at which you buy or lease or rent a property as stressed upon by M. Abid of Universal Property Network.
Not only that, it also impacts the sales. Therefore, this greatly influences the market and should not be ignored at any cost.
These were some of the elements that you should keep in mind when studying the real estate market of Pakistan. Have you ever faced a situation where these factors helped in deciding where you end up buying? If yes, share your tips in the comments below or head over to the Zameen Forum and start a more detailed conversation.
Share
Haroon Jilani
Haroon Jilani is a Sub-Editor at Zameen Media (Pvt) Ltd.
