As per official statistics, Pakistan’s Gross Domestic Product was increased 5.6 percent in the fiscal year of 2017-18, due to several reasons especially growth within different service and production sectors. However, with general elections taking place in the year 2018, a new ruling party came into authority, which limited the growth of few sectors in leading cities of Pakistan, including the real estate sector. The sector recovered immediately after the formation of the new PTI government, but the investors have become vigilant, and before investing their hard-earned money into this sector, they want to be certain about the bright future of the real estate sector in Pakistan.
Most experts are quite optimistic about Pakistan real estate sector and state the following to support their stance.
The Interest of Overseas Pakistanis
Majority of overseas Pakistanis prefer investing their hard-earned money back in their homeland because they believe one day, they will have to come back to Pakistan, and what can be a better opportunity than the real estate sector? Most of the high-end residential societies in major cities like Islamabad, Karachi, and Lahore, provide a luxurious lifestyle equipped with amenities of international standard. By doing so, they manage to grab the attention of overseas Pakistanis. For example, it is not wrong to say that the major reason behind the extension of Defence Housing Authority Lahore from Phase I to Phase XI and beyond is the utmost interest and demand from overseas Pakistanis. Out of all major sectors obtaining benefits from overseas investment, Pakistan real estate is at the top of the list.
High Returns on Investment (ROI)
Though, as for a fact, real estate is the only sector in the country that always offers high returns on investment (ROI) both in the short and long run. This is the reason majority people recommend you to invest your savings in any kind of real estate asset. All you need is to conduct some thorough research regarding the quality of the development you want to invest in, previous sales and purchase trends in the given area, the developer’s reputation and market inclination. This due attention will help you invest in the best kind of property and earn more from your investment in the future. We can say with confidence that real estate is a safe investment in Pakistan as compared to other investment vehicles such as stocks.
Lower Bank Interest Rate
As per the official statement recently released by the State Bank of Pakistan (SBP), the bank’s interest rate has been reduced as compared to the previous fiscal year. Lower interest rates force people to withdraw their savings from banks and invest in some other sectors, and what better option they are left with than investing in real estate? Retired or Old people will now prefer purchasing a house to let out and have a steady additional cash flow besides owning a tangible asset. Moreover, real estate asset also offers large capital gain over time. Due to these reasons, real estate investment proves to be the most suitable option right now. These pointers show that the future seems bright for Pakistan real estate sector, and this sector also has the potential to drive many cognate sectors to boom.
Advice for Real Estate Investors in the year 2020
As a real estate investor, you explore various asset categories of real estate to make your investment, such as farmlands, residential land, houses, apartments, commercial offices, multifamily, and industrial. All these asset sections are tangible assets, unlike just a piece of agreement or paper. We advise you not to invest in misleading documents and products claimed to be real estate but has no value in actual.
It is better to invest in a less-popular neighborhood where the price will appreciate only by ten to fifteen percent in the next four to five years as compared to purchasing a piece of document. The documents which will only give you a contract to construct a house, or even if it is a house, the document will only give you a contract to live and have a possession of your property by fulfilling strict conditions of a master, against whom you cannot take any legal action in case he does not oblige. Moreover, be a real estate investor, not a gambler, and invest in legit assets rather than putting your hard-earned investment on a piece of paper.