Pakistan Realty Sector is Progressing by Leaps and Bound
These positive sentiments about real estate are not completely baseless but are based on their past track record. As you may know someone around you, who bought a piece of land some 20 years ago and now the value of the property is increased multifold. And it is human psyche that he tends to believe that things would usually turn out as they have happened in the past.
However, experts say that it is not good to believe in past tack records blindly as they can betray you, seeing the market happenings and economic conditions. According to this reasoning, one must believe that if one investment vehicle is offering handsome returns will keep offering lucrative profits without being affected by the market conditions.
After this reasoning, do you still think that we should keep believing in the glorious past and make decisions seeing the past outcomes or we must change our course of action and take a step back to ponder and then invest? People usually believe in that property is that asset, which price cannot go down. Therefore, one must keep investing in real estate to recover the actual amount along with profit.
People with typical mindset say that prices in all major cities of Pakistan are still much lower than the metropolitan cities (such as Shanghai, Mumbai, Singapore and Dubai) across world. Therefore, we can believe that there is still room for further price appreciation in Pakistan. Experts say that property prices also depend upon the employment opportunities and the amount of average salary, they withdraw. And if a metropolitan city fails to offer these things to people, property prices do not go further beyond a certain limit.
I can say that property prices cannot always go up but there will be a slab on property prices sooner or later. Therefore, if you want to invest your hard-earned money in real estate, you must think twice before doing so.