Post Election 2013 - Price Trends

Projects & Developments General Advice
#1

Post 2013 elections, we have seen:-

(i) continuation of unfortunate dharna politics and fighting between institutions - political parties and supreme court; (ii) increase in Karachi violence; (iii) continuation of the vicious cycle between drone strikes and local terrorism; (iv) sectarian violence with hidden foreign hand. (v) natural disasters such as floods.

The federal govt has not had time to pause and work for stability and economic improvement in Pakistan.

I think in these circumstances, property prices are more or less stagnant. Although generally speaking people invest in real estate if the business environment is not conducive to growth.

But now we have reached a point where people are hesitating to invest even in real estate. Large developers are nor rolling out new projects. In fact multi park in Islamabad zone 4 has been rolled back.

In my view improvement in law and order and political stability are must for renewal of interest in real estate sector.

What do you think?

#2

There can be no two opinions about the fact that law and order is an important pre-requisite to promote any economic activity. However, economic and market systems present a complex interplay of different factors, some of which can have unexpected outcomes. In your post, you have rightly pointed out some of the negative factors facing the real estate market. I would take this opportunity to state some of the potentially positive factors.

  1. The amnesty scheme related to the stock market is still valid which means the process of converting black money to white is in full swing in the stock market which is one of the reasons for its unprecedented rise. However, smart investors after completing the mandatory 3 month period withdraw their money anticipating a big fall, which could be coming anytime. Where does this new legalized money go? You know the answer!

  2. In the new federal budget, Government has given some unusual powers to FBR to access bank account details of all account holders. People who have large sums of undeclared wealth in accounts are withdrawing this money (confirmed to me by my banker). Some of this money is going into buying dollars while rest will come into real estate.

  3. With Eid approaching, many expatriates are likely to visit the country, and some of them will enter into real estate agreements for investment or homebuilding purposes, bringing fresh injection of money in the market. With the devaluation of Rupee, their spending power has increased too.

  4. There hasnt been any significant increase in Federal Taxes on real estate as opposed to things such as cars.

  5. With the gold prices going in a tail spin, many speculators who have got their fingers burnt are making an exit. Real Estate is almost an automatic next choice.

Based on the above reasons, I think the property market might resume its gradual rise after Eid, InshAllah. Thats just my opinion, others can offcourse disagree.

#3

Sir another point is that in these circumstances,people try to invest in real estate because they feel safe after investing their money and people always think of solid investment.. Another point of syed amjad sb is very much valid regarding the expatriates...

#4

What new steps or revolutionary policies have we seen from the new government???

What will bring investor confidence back to the economy?

We need a new foreign policy that will bring self respect, national self esteem and peace in the country. You cannot ask for economic growth until you have peace and security. These people are continuing the same policies which will not end violence in our cities. Then how will real estate see a boom after eid??

?

#5
  • What is everyone's opinion on the investment climate in Pakistan?
  • Will Mian sahab's televised speech tonight give some confidence to investors (Pakistanis, overseas Pakistanis and foreigners)?

In my opinion, it is useless to talk about foreign investment in the productive manufacturing and agricultural sector at a time when even small investors such as overseas Pakistanis are hesitant to invest in Pakistan.

The key points are:-

  1. Security of life and property; (Security is reasonably OK in Punjab and Federal Capital but needs to be provided in urban Sindh, KPK and Balochistan).

  2. Energy (Situation is pathetic overall and the situation needs immediate desperate measures);

  3. Infrastructure - such as roads, telecommunications and IT, hotels, efficient police services, airports, freight and cargo etc. (Generally satisfactory but still needs continuous improvement)

  4. Favourable economic policies and legal system (Economic policies are ok in the circumstances but the legal system is slow and rusty).

ANY OTHER VALUABLE OPINIONS PLEASE...

#6

Healthy Discussion from all the senior members specially PK 1 . One of the most important point which everyone ignoring is the discount rate in Pakistan which is at its minimum in the previous 15 Years History . I am of the view that 90 Of the Property Portfolio in Pakistan in owned by local Pakistani residents and only 10 % Portfolio is owned by the foreign residents . In my view foreign investment is still needs to come in the real state market . Pakistani Residents do not have any good option right now except investing in property . I am expecting a Super Boom for property in the next coming One Year . Provided big Real State Tycoons like Malik Riaz, Arif Habib, Saith Abid and many others manage to bring some big Institutional Foreign investment from abroad. Individual investment like Buying one or Two Plots by a foreign resident Pakistanis will not bring any big break through in real estate market. There are some other factors which will bring havey foreign investment in Real State sector in Pakistan. I will discuss these factors in my next post Insha Allah

#7

Sir i usually find you portraying very hopeless situation of pakistan..=)...Sir just pray for the country.I think U are very disappointed. As far as ur questions are concerned sir my view point is that property prices is not going to fall at all.Plus the foreign investment which u consider cannot make or break the market as just buying or selling couple of plots cannot affect much..Foreign investments at a very large scale can create some difference.One other point is regarding the profit on deposited amount which national savings and other institutions has gone very low so only outlet for the people is to invest in property.Also our industry and business is at halt ,so every one wants to invest his money at best possible place.People usually feel themselves safe after investing in property..

#8

Saadi I am not disappointed in Pakistan. This is why I remain committed to the Pakistani real estate market - especially Lahore and Islamabad. I am hoping that other cities will also flourish. The real estate market in Multan is also very good and it is possible to get a good return.

Overall in the country, the situation is bad but not hopeless. A lot can be done and I hope they do it.

I will be waiting eagerly for the PM's speech tonight. I hope they have good plans inshaAllah.

I think the need of the time is for all Pakistanis and our politicians to work with each other for the country's development and not against each other.

Now is the time for them to compete with each other in the provinces they have:-

-PTI has KPK and it should compete in a healthy way with Punjab. -PML-N has Punjab and it should try to do better than before for Punjab. -PPP has Sindh and it should work hard to show its good performance in Sindh so that they can win the next election from all over the country. -The Balochs have Balochistan they should try to stop the violence and bring the separatist to the mainstream of the province and Pakistan as a whole.

The politicians should understand that they cannot bring a revolution in Pakistan by only dharna politics.

#9

Agreed with PK1 The situation is considered bad in eyes of oversees Pakistani. A lot of my frd are not willining to come back to Pakistan, however, they keep on investing in plots which creats some sort of property boom (though might be temporary in contraste to permanent)

@Saadi We are hopeful and lets hope fr the best for Pakistani people and easy home for everyone InshALLAH

#10

What do you think about Prime Minister’s speech? How property prices of Pakistan will be impacted? Or no impact?

Get the Zameen App

Buy and Rent Property faster and better
using our app.
Scan the QR code to
get the app

Get Connected

© 2007– Zameen.com. All rights are reserved.