What Naya Pakistan means for Pakistani Real Estate
With an unprecedented showmanship by the Pakistani people, a new government has been recently brought to power in the General Election 2018. This foreshadows a lot of changes that will take place in the coming few months. The new government’s policies are bound to have an effect on the real estate market of Pakistan. Read on below to see what this “Naya Pakistan” means for the Pakistani real estate market.
Post 2016, property taxes reduced the prices of the overall real estate market. While the market had barely recovered from this, the rupee got depreciated against the dollar and became one of the worst performing currencies in Asia. The people and the market had just gotten used to the idea of an increased cost of living when the elections came up.
All these back to back events created a scenario where it became increasingly lucrative for expats to invest and earn exponential ROI. Based on historical trends, property prices always fall during election year and increase in value post-election. This time around, because of the political party in power, the positive changes are going to be huge since they have to deliver on their mandate.
This means that investor friendly atmosphere will be created especially for overseas Pakistanis looking to give back to their homeland. Therefore, with the decrease in the property prices and the decrease in the value of the Rupee against the Dollar, this is an ideal time to invest in Pakistan.
One of the main benefits of investing in Pakistan right now is that you can get property in prime locations of Pakistan – something that even overseas Pakistanis used to give a second thought to pre-2016. Locations like DHA, Gulberg, Ferozepur Road and others have now opened up to a lot of people and a lot of people have already taken advantage of such an opportunity.
Some of the areas one can consider are as follows.
As always, DHA Lahore happens to be the most renowned, reliable and respected of the property options. You can make an investment in any phase of DHA in Lahore for small amounts considering the general economic scenario.
Commercial Plots DHA Lahore
This is one of the best times to invest in a high return commercial area such as DHA Lahore. These would give a high rental yield of around 7-8% per annum.
Another option for the people is LDA City. This is a rapidly developing area with a lot of local investors taking interest in this area. The file for a 1 Kanal plot start from PKR 35 Lacs, for a 10 Marla plot it begins from PKR 25 Lacs and for a 5 Marla plot, the file price starts at PKR 15 Lacs.
New mixed use development projects guarantee annual rental yield of 7-8% making it a highly lucrative option for overseas Pakistanis looking to jumpstart a business or gain rental income on a yearly basis.
The process is fairly simple and can be completed in a matter of days. It is the right time to make the investment. With the dollar price increase, the taxes on the properties reducing the price, this is the ideal time for overseas Pakistanis to put their money to work.
All you need is an investment of a few thousand dollars and you can start earning decent annual income based on your area of investment.
These are some of the areas where overseas Pakistanis can invest and earn despite the overall property market being extremely slow. Talk to us in the comments section below if you are interested in making a purchase or if you have any other areas you want us to highlight.