Categoriesnews Property Real Estate

Why pakistan real estate market is falling?

Why pakistan real estate market is falling?

Due to the less demand for real estate properties, people have stopped investing in this market, and the prices have also decreased. Many people sold their houses or other properties at a lower price than normal to get the cash on hand as emergency funds.

People with savings can invest more in this market because of less demand and lower prices. Consumers with savings are investing more and more at low rates to make money in the future. Pakistan’s real estate markets are doing well due to this investment.

Reasons: Why pakistan real estate market is falling?

There are many reasons why the real estate market is falling in Pakistan.

  • A major factor contributing to this decline is the rise in the cost of living. The inflation rate in Pakistan is quite high. It is expected to go up further shortly. The average income of the citizens has also gone up considerably. To meet the high cost of living, people need to save money. This means that there is less demand for real estate properties.
  •  Another factor causing this decline in the real estate market is the less demand for properties. People have stopped buying the properties or have sold them at a lower price. This is mainly because of the increase in the cost of living.
  •  Most consumers are keeping their money and not investing in the real estate industry. They put their money in other investments such as stocks, bonds, mutual funds, etc. Consumers are buying homes and apartments at a lower price than the amount they were sold at previously. Consumers are selling their houses and apartments to raise money to invest in other areas.

 High property taxes in pakistan

Property tax is one of the most important components of a property. If it is high, it will affect the sale of the property. Property taxes in Pakistan are very high. The government of Pakistan has imposed a tax on all properties in Pakistan. This is the highest tax in the world. The total property tax in Pakistan is about Rs. 5.3 trillion.

Property tax in Pakistan

Property tax is a form of tax imposed on a property’s value. The purpose of the property tax is to generate revenue for the government. Property tax is charged in different forms annual property tax, quarterly property tax and semi-annual property tax. The property tax is levied by the government on the individual and is based on the property’s assessed value. The property tax is charged at a fixed rate, and the amount of tax is calculated based on the property’s assessed value. The property tax is a form of property transfer tax.

Real Estate Investment in Pakistan

Many other investment opportunities should be addressed due to their volatile nature due to the Pakistan Real Estate Forecast 2023.

Best Real Estate Investment in Pakistan 2023

The Pakistan Real Estate Forecast 2023 says it will be a year of boom for the real estate market for many reasons. Some of the reasons that make real estate a desirable place to invest are discussed below:

  • Unstable Prices of Gold:

Many people like to invest in Gold for a variety of reasons. There is an unstable market for Gold. Its prices can go as high as 2000 dollars per ounce. Many investors have left because they think there are better times to invest in Gold. Their investment goes into real estate growth in Pakistan.

  • Stock Markets:

Suppose you need more information about the shares, how to trade, or the stock market, then you should not invest in the stock market. The decision needs to be made in a few seconds whether to sell or buy more shares in the market. Many investors are unwilling to take excessive risks, which is not a good investment. Many people have sold their shares to invest in the Pakistan real estate market.

If you are planning to invest in real estate, you must know the reasons that will attract people to invest in real estate. One reason is its stability. Many people look at real estate as a stable investment. They can get returns as long as they wait for a while.

The second reason is its low risk. If you plan to invest in real estate, you must understand the low risk. You can purchase real estate properties with a large amount of money. You don’t have to worry about whether you will lose your money. The only risk you may face is the price you pay to buy the property.

LDA starts operation against illegal housing societies.

LDA starts operation against illegal housing societies

LDA Launches Operation Against Eight Illegal Housing Societies

Eight unauthorized housing societies have been destroyed by the LDA. There was an operation against A&M homes, Palm Villas, Ehsaas Villas, Maraka marketing, and Punjab estate.

Mohalinwal Nagar, Bismillah Associates, and an illegal land subdivision near Greenview were all taken action at the same time.

Offices, roadways, boundary walls, and other buildings of the illegal housing complexes were also demolished. The public has been fleeced for over two years by the aforementioned housing societies.

Some of the officials have also stated that the housing societies keep on scamming people and reconstructing the demolished offices and structures after a few days of the operation.

Categoriesnews Real Estate

How real estate sector manages to refuel itself ?

People cannot be coerced into exporting goods, especially if the incentives lie in the passive real estate sector


Real estate is a major avenue for investment in Pakistan and, in terms of returns, has beaten almost all other asset classes. According to the House Price Index, houses have shown a compound return of almost 13% over the last 10 years. The last two years have seen a compounded return of almost 18%.

The drivers of demand for real estate in Pakistan are slightly different than the global drivers.

It is unrealistic to think that the rising price of houses results from a rise in consumption. Consumption may be one of the drivers here, but it is not the most important. Why do I say something like that? In response to contractionary monetary and fiscal policies, consumption in Pakistan has started to diminish. Real-estate prices have not budged despite a noticeable dip in car sales and gasoline consumption.

Five years ago, I wrote an article in this newspaper comparing the real estate hub of Pakistan, Karachi, to other metropolitan cities. Pakistan’s real-estate sector peaked, given the traditional demand-side indicators, such as the rent-to-price and salary-to-rent ratios. This did not happen to me, to my astonishment. The best explanation of my situation can be found in verse from Ghalib.

“Thee khabar garm ke Ghalib ke urenge purze,

Dekhne hum bhi gae thay, par tamasha na hua”

(It was big news that pieces of Ghalib’s body were going to be taken apart,

Pakistan’s real-estate bubble never burst as predicted, and I was among those waiting to watch, but the predicted circus act never took place.

The real-estate bubble didn’t burst, but why did the Tamansha not place? In Pakistan, consumption is only one of the primary drivers of real-estate demand.

Surplus funds parked in this sector by the more affluent classes of society are the reason for real-estate demand. It has become very difficult to take money out of the country because of the Financial Action Task Force conditions. Those popular destinations grapple with money-laundering issues and are usually used by Pakistan to hide its financial surplus. The funds that cannot find a way out of Pakistan have found a place in the real estate market.

If Mr A wanted to park funds in a real state to purchase a plot of land from Mr B, what would Mr B do now? Will he use the money to invest in his own company, or will he use it to purchase shares in his company?

No, he does not do that sort of thing. He buys another plot of land because he wants to make more profit. The chain has been going on for a long time.

Pakistan’s real-estate refuels itself, becoming more and more profitable for those who can afford it. Kevin Spacey said in a movie that land is a limited resource, and in Pakistan, a finite amount of land is chased by an infinite number of buyers. The money offered for plots is growing by leaps and bounds, even though these buyers and sellers manage to increase their investment every few years. There is a limited amount of supply, however. This limited supply causes the prices to go up again and again.

There is no end in sight for the boom if the economic policies stay the same. Investing in property market investments can turn black money into white cash. This is an important driver for real estate as at least 40% of Pakistan’s economy is not documented. Hence, huge sums of money are routed through this avenue.

So, then what’s the problem with this?

The problem with getting on this self-refuelling real-estate bandwagon is that it is diminishing the productive potential in the country. When you can double the money in a few years playing golf, why would anyone want to export goods critical to our economic survival?

The tax laws governing this area make it possible for real-estate barons to pay infinitely fewer taxes than they would in the corporate sector. This acts as an incentive in favour of the real-estate bandwagon and also results in the government needed help to collect the required amount of tax.

Men are motivated by incentives. You must refrain from forcing them to export goods, especially if they live in the passive real estate sector.

In the next few years, there will be an oversupply of homes, which means home prices will fall.

Pakistan’s balance-of-payments crisis results from the need for more incentives offered in other lucrative, productive businesses.

Economists have developed a nudging theory that can be used to turn a situation involving a selfish individual into one where everyone is better off.

Incentives must be created to ensure that surplus capital flows through efficient businesses. It would help if you always established incentives for your business, especially for export.

Exports are a potential solution for Pakistan. An increase in exports would boost the economy and lead to a recovery.

Pakistan has had its ups and downs over the past few years, but it can only avoid another economic meltdown if it stops the country’s current real-estate trend.

The writer is a banker and teaches economics

Published in The Express Tribune, November 14th, 2022.

Categoriesnews Real Estate

Real Estate Has Huge Potential For Women Entrepreneurs: President FWCCI

Real Estate Sector has huge potential to adjust women entrepreneurs and they should avail this opportunity on priority basis and prove their mettle in real estate and its allied lines as developer.

This was stated by Rubina Amjad 

The President of the FWCCI was speaking to the participants of the ‘Boss Ladies expo-2022’ at the auditorium of the FCCI.

She said that the FWCCI is the pioneer in the country’s women chambers to tap this potential sector for women in real estate business, which is why the expo has first ever been organized in the region.

She said that the real estate sector has a value of US Dollar 300 to 400 billion and its contribution in the national GDP is around 5%.

Mian Muhammad Idrees, the former President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) spoke at the function and said that it is a new area for women where they could be encouraged and convinced to get knowledge, initiate and utilize their potential.

He said that in developed countries, women contribute a lot to economic development. FWCCI should organize such activities in order to create awareness among the female community because of the example of regional countries as Sri Lanka, Bangladesh, India, China, etc. Dr. is a practicing doctor FCCI President Khurram Tariq distributed certificates at the function. 

Engineer Babar Ikram Project Head Wapda City, Munaza Khurram, Danyal Sheikh, Haniah Javed, Sidra Hussain, Iram Riaz, Alina Kazmi, Mariam Atif, Rukhsana Kausar, Mariam Waqas, Mehvish Zara Khan and others also spoke on the occasion.

Reference:Urdu Point


Next week, the subscription for the first developmental REIT will begin.


The general public will be able to purchase shares in Pakistan’s first real estate investment trust on Dec 14 and 15 ahead of its upcoming listing on the Pakistan Stock Exchange.

The company is selling 10 per cent of Globe Residency REIT to ordinary investors for Rs10 apiece, a formal term used for shares in the case of a real estate investment trust.

Real estate investment trusts (REITs) collect money from investors and deploy it in real estate projects. The feature designed to let small investors take exposure to an otherwise capital-intensive and illiquid real estate market is what they must list on the stock exchange within three years of inception.

The project is based on a close-ended scheme which has a life of 48 months. Globe Residency is an apartment project of 1,344 residential units located on the outskirts of Karachi, and will be built with the help of proceeds.

The general public is expected to purchase 10 percent of the shares in the real estate investment trust, but the shareholders of the parent company will purchase 85 percent of the units at the same price. The remaining 5 percent will be bought by real estate consultants, according to the director of the corporation.

The CEO of the sister company that is going to launch as a real estate investment trust said that debt and equity will contribute Rs.1.4 billion each.

A higher degree of transparency is offered by REITs because trustees control all assets, unlike developers. The real estate investment trusts sector remained inactive for nearly six years after the first transaction in 2015.

There were no transactions because of changes in the tax and regulatory regimes that discouraged investors from taking part in the special investment schemes. The State Bank of Pakistan, Federal Board of Revenue and the Securities and Exchange Commission of Pakistan stepped up a gear in the last year or so, making it attractive for investors to put money into the real estate sector.

Categoriesnews Real Estate

The Jinnah and Iqbal sectors of LDA city have new development charges approved by LDA.

The LDA’s governing body has approved new development charges for the Jinnah and Iqbal sectors, according to the LDA’s official Facebook page.

The sixth meeting of the LDA’s governing board was chaired by the Punjab Chief Minister. The third balloting for residential plots in the Jinnah and Iqbal sectors will take place with the new pricing. In addition to other terms and conditions, the development charges are also subject to a potential rise in development expenditure.

The news report says the charges could be increased after the development work is over.

The governing body also took the following decisions:

  • Mosques are exempt from paying sewage fees.
  • Formation of a “Settlement Committee” to settle issues in LDA-managed projects.
  • The board approved an improved LDA Avenue-1 project layout plan.
  • All apartment projects in the city have to provide roof gardens and car parking facilities.
  • Schools may have maximum vertical heights of up to 48 feet, but they will not be allowed on roads that are more than 30 feet wide.  

How to find 3 to 5 marla plot for Sale in Lahore Pakistan ?


CategoriesConstruction news

Mera Pakistan Mera Ghar Housing Scheme – Ishaq Dar Assures Financial Support to this project

According to press reports, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over a review meeting on the development of the mpg scheme.

In order to address the nation’s housing shortage, the minister said the government would continue to maintain the markup subsidy. In addition to removing hurdles that are operational or functional, the government will also improve the project’s financial components.

The chairman of theNAPHDA briefed the minister on the project’s status. The minister asked meeting participants to come up with a sustainable and long-term solution to the mortgage crisis in addition to requesting government support in overcoming operational issues.

The MPMG project was launched in 2020 to address the nation’s housing needs The government claimed financial restrictions, suspended project finance and intended to restart the project after restructuring on a competitive market basis in May of this year.


For Low Income Citizens Federal Government Launching a Housing Scheme

According to news sources, the federal government was preparing to introduce a programme for low-income residents to help them find affordable housing. The programme will be introduced in cooperation with other stakeholders. A decision was made during a meeting between the Islamabad Chamber of Commerce and Industry and the Ministry of Housing and Works Secretary.

Shallwani stated that the project’s aim was to provide people with affordable housing complexes. The first international housing expo will take place at the Jinnah Convention Center in Islamabad from December 8 to 11.

The housing industry and related businesses would be introduced to the global market at the expo, according to the participants of the meeting. The goal is for Chinese businesses to present their low cost housing technologies at the housing exhibition.

Pakistan has a severe housing shortage, with 1 million new homes needed annually to accommodate the nation’s expanding population. To provide low-interest house loans, the government has created a number of programs.


The Lasbela Chamber demands that the bridge over the Hub River must be restored right away

The Lasbela Chamber of Commerce and Industry has demanded that work on the bridge and causeway over the Hub River start immediately.

According to Ismail Suttar, the Hub Bridge is the main route connecting Lasbela district in Sindh with Balochistan. The bridge collapsed due to the flooding and rain of the last monsoon season.

The NHA promised to build a causeway on the Hub River within 15 days after the rains stopped. September 15, 2022, was when the work was supposed to begin.

The lack of progress on the bridge and causeway is worrying the members of the LCCI. The commute was even more dreary on November 7, 2022, due to a few light raindrops. The people who use this road to travel to Hub and beyond have a difficult time because of the missing road link between the two provinces.

The meeting demanded that NHA start construction on the bridge and causeway immediately because the project has already been delayed and the winter rains have begun.


The Bani Gala police station has been granted land in Islamabad Pakistan

In order to provide efficient policing in the area and quick assistance for residents, the Bani Gala police station has been given 16 kanal of land by the Capital Development Authority.

The land for the police station was given to the Federal Minister for Interior because of his interest. The Capital Development Authority has issued an allocation letter for the new structure.

The process for allocating the buildings for the soon-to-be-completed Khanna, Lohi Bher, and Nilore police stations is in progress. IGP Islamabad Dr. was along with his team. The allocation procedure for the land of the police stations was done by Akbar Nasir Khan.

The IGP is from Islamabad. A state-of-the-art building will be built for the Bani Gala police station, with separate offices for the investigation officers and residential quarters for the officials, according to Akbar Nasir Khan. The NNI is in Northern Ireland.

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