Real Estate Market Report Points to Recovery
KARACHI: The 2017 Lamudi Real Estate Market Report for Pakistan went live today with the adage that the “market has overcome challenges to move into a growth phase”. The news will come as a pleasant surprise for agents, homeowners, and developers who have had it tough since the tax overhaul that came into effect on the first of July, last year. With increases to withholding tax, capital gains, and income tax, along with changes to house valuations stakeholders suffered a loss of confidence. But, is that all about to change?
Findings from Lamudi’s report indicate that sales transactions are picking up with an upturn in the number of people spending time on online property platforms. As the market transitions to being almost entirely online, this will act as a further fillip for the billion dollar sector.
Foreign direct investment is moving in the right direction as a result of progressive initiatives by the government. China is the biggest investor and chipped in a sizeable $157 million in the first five months of FY17. A close second was Turkey followed by the United States. However, that could all change with the new president and his ambitions to invest more in the United States and less elsewhere. However, his top priority is real estate, and he will see potential in Pakistan’s surging market.
“The government needs to reduce the ‘red tape’ for developers who choose to provide for the neglected and underserved majority population who fall into the low-income bracket,” replied Emma Ahmed when interviewed by Lamudi about affordable housing in Pakistan—now a serious problem. Ahmed who works as the head of business development at Ansaar Management Company (AMC) has some fascinating insights into how to build a sustainable business model for affordable housing, but the support of the government is a necessity. In the exclusive interview about affordable housing, Ahmed points to the exponential population growth compounded by the reluctance of private developers to take on low-cost housing projects.
Imran Zaman—CEO of Rayyan Real Investment—was asked as part of the expert interview included in Lamudi’s report what edge the Pakistan real estate market has over other countries. “The China-Pakistan Economic Corridor (CPEC) is undoubtedly a strong partnership for Pakistan. Since its initiation, people from all around the world have looked towards Pakistan for investment purpose,” mentioned Zaman; who is confident that if Pakistan can overcome some challenges the real estate market will take off in the second half of 2017 moving in 2018.