May allah safe our country ameen !
My question is that what effect of current law & order / extremism will be on real estate bisiness?
Whether after change of present govt.Serious situation of pakistan will be better or remain same?
Dear ahsan, This is a very important question! Your rights as owner of moveable and immoveable property are linked directly to the strength of the state institutions such as:-
(i) government (so that it can provide effective administration like infrastructure and enforcement of law and order); (ii) judiciary (so that it can enforce justice and safeguard rights of individuals and businesses); (iii) armed forces so that they can safeguard you and your property from foreign enemies; and (iv) media so that you can remain informed of your surroundings and make decisions about yourself and your property;
These state institutions enable you to have peaceful enjoyment of your property. If these state institutions are weak, your prospects for peaceful enjoyment of your property and for market appreciation (capital gains) will become less and less bright. This is why if even a dictatorship provides theseinstitutions i.E. (i) to (iv), then property prices keep rising.
Right now, generally speaking the state institutions in pakistan are weaker than before, but they are still functioning. This is why property prices are still increasing as population rises. In some areas, state institutions are almost non functional but there are other forces like tribal authorities and self help that provide some of the benefits of these institutions. There also property prices will be reasonably high. In some areas, there is almost a break down of law and order; there the prices will keep falling.
In the next elections, if pakistanis can elect a stable government for example if one party takes at least 51% of the seats in national assembly with good performance in 1-2 provinces and reasonable performance in the other provinces, that will be ideal for real estate prices, and also for business generally. On the other hand, if several parties take 20-30 percent of the seats, there will be make and break politics and lota-ism. That is not good for state institutions, because parties will need to give incentives to winners in the form of ministries and other benefits etc.
At the moment in pakistan, we are not united enough to elect a single party. We have many prejudices and 'taasubaats' such as loyalty to our language, our caste, our province, our ethnicity, our sect etc. If we are more united we can elect one major party. But at the moment, as you can see, some people want more islamic system, other people want musharraf style govt of liberal and secular values. Pakistanis havea deep internal ideological division; this does not allow us to unite and elect a striong govt. When we made pakistan in 1947, we were muslims and then pakistanis. Now we are pathan, muhajir, baloch, punjabi, shia, sunni ahle hadeeth etc.
May be. Allah is placing bad leadership on us so that we can unite in our difficulties because this is human nature; when there is trouble they come close to each other. Insha.Allah let us pray for the best.