Pakistan Realty Sector to get Benefit from Foreign Investment
You may be aware of the news that in the beginning of financial year 2017, the International Monetary Fund suggested the concerned authorities in Pakistan to allow the exchange rate to adjust automatically to the forces of demand and supply. It would help foreign buyers purchase Pakistani exports at a lower cost and inhibit the local buyers from consuming foreign goods. The export items that are set to be price competitive for international buyers include real estate as well.
Money devaluation has further affected the sector and investors are being cautious until the situation becomes clear. However, the real estate is considered the strongest sector of Pakistan economy that always bounces back after every negative happening. Whenever the bubble bursts, the market finds its equilibrium on the basis of high demand, genuine buyers, cash-backed investments and shortage of housing units. Therefore, even now, despite the bleak circumstances there is hope of brighter time.
The ongoing development of CPEC is also proving to be a positive step for Pakistan real estate sector development. It is attracting a number of international buyers, who are showing utmost interest in the realty sector. Road shows and exhibitions are being held not just in China but across the world to entice buyers to park their money in Pakistan real estate sector. A number of large-scale construction projects constructed by Chinese companies in Gwadar are gaining popularity among Pakistan expatriates in UK.
However, the situation is different within the country, where the prevailing prices in Pakistan property market are quite low, especially, and the genuine buyers are also not so active. And experts believe that situation will remain persistent until few variables do not change that inhibit the activity in the market. And as the rupee started depreciating against dollar, the low activity will continue till these variables are dealt with.
Most of the realty experts also predict a relatively cooler 2018 for Pakistan real estate sector, as no one is sure when the market will actually start showing recovery signs. Currently, people are showing more interest in investing their savings in other investment vehicles including gold and foreign currency, as compared to real estate due to their liquidity. Therefore, only those people are seen active in the market, who are genuine buyers and want to own a home to live in or rent it out with a long term investment or rental return plan in their mind – providing opportunity to the foreign buyers to park their savings here in Pakistan.