Property Buyers Shifting Investment Out of Pakistan
And since then, a drastic decline has been observed in the investment in the real estate sector. Recently, government revised the decade-old collector rates of properties in several cities, which means the property buyers and sellers are accountable of paying withholding tax on revised rates. Moreover, property investors are also required to pay capital gains tax.
The point that worries most of the investors is that the revenue body is also authorised to inquire about the source of investment. Hundreds of thousands people are associated with real estate business in one way or another and there are no estimates about the quantum of property trading business in the country.
However, if we take World Bank' s statement seriously, in most of the countries, real estate including land accounts for between half and three-quarters of the national wealth. The asset market size in Pakistan is around one trillion dollar and real estate contributes the highest share. All is shaken after the property revaluation news surfaced in the market because investors have started pulling out their money from property market due to uncertain situation and decrease in property values.
Most of these investors are taking their money to other profitable destinations, which will prove to be more fruitful with time. However, this situation is deteriorating Pakistan realty sector and will ruin the market in the long run. A delegation of the real estate brokers also called on Provincial Advisor Mola Buksh Chandio and informed him that even the property registrars were confused and they were still registering properties on collector rates.
Afindi said the advisor assured the delegation that the issues relating to the provincial government would be resolved while their recommendations would also be sent to the federal government.