Real estate investment is like hot cake these days in Pakistan. While studies reveal that more the property prices go up less is the economic progress in country. This was property bubble which slowed down Japan economy in 90’s. Why not explore other areas where more employment can be generated. In our greed to become rich over night, we are spoiling agricultural lands. Why not promote apartment living and leaving land free for food needs not only for us but our generations to come.
Well, In Pakistan, there is no other business, from clerk to judges, doctors, engineers, bureaucrates, army officials, everybody is busy in Real Estate, because it is safe plus one and only business remaining in Pakistan :) There is a lot of potential in the people of Pakistan plus many opportunities but sorry to say that no one ever succeed playing fair in this country. Let Real Estate business flourish, at least something is working. Most of the black money is involved in Real Estate transactions, another reason for boom.
If Bahria, Multi, DHA and other developers will not develop the land around Islamabad, it will become occupied into slum localities by villagers. Look at what happened in G-12, E-12 etc.
But yes there should be some restriction on continued expansion of urban areas. By the way this is happening all over the world, but more in Pakistan due to population explosion. If we keep increasing our population like this, the whole of our land will become a huge urban mess. Agriculture will take place in high rise buildings with greenhouse type constructions.
I think that more land needs to be developed and ideally by the public sector so that future price increases of property are contained. Booming property prices are not good for the general economy as it pushes up the cost of accommodation and leaves still money left for the rest of the economy, which is the productive economy. It means more of peoples money and income is spent on accommodation. We need to see areas like DHA Valley being developed now and not in 10/15 years time.
So for from our discussion we can establish that we invest in real estate. 1. To contain slum localities 2. Because no other business is safe 3. Black money involvement provide good dividend 4. Sporadic development news fluctuate property prices and many in this business earn. But question still remains should we not promote high rise culture? Thanks
I think that eventually high arises will gain favour but for the moment the trend is towards smaller plot sizes i.e where Kanal used to the favoured size now 10 marla is most popular and in future it will go down to 7/8 marla and 5 marla.
I agreed with Nasir Khurshid comments, There is no other field where we can invest except real estate due to current bad situation of law and order in the country.But real estate also a source of income for thousand of peoples, I mean people who devople land, Construct society, construct houses etc.
There is more money to be made from business than real estate but our people don’t have the intelligence or want an easy way in life and therefore invest in real estate.
Thanks Ahmed Tanoli, plus i have seen many factory owners crying because of load shedding and no gas connections after giving huge amounts of money as bribes and over head cost. Now they are selling the factories on loss and also the machinery.