Rupee Freefall - Adjustment or AVALANCHE in Real Estate?

Will there be (1) only adjustment in property prices or (2) will rupee decline will trigger copycat buying so more and more people rush to secure their savings in real estate thus creating a snowball effect and perhaps even avalanche?

Economy is running on artificial steroids, rupee fall and dollar rise will increase property prices a lot. This has been observed recently. Real growth and strength of Economy lies in Foreign Direct Investment and Exports, both are in poor condition. We are printing money, taxing crazy, taking heavy loans and no foreign investment or exports like we once had.

Can someone explain how you are linking this Rupee fall to gain in property prices? whats the catch?

Rupee fall means loss of value so you need more rupees to buy the same thing, now this balance can overshoot due to negative speculation against rupee and lack of other avenues for people to secure their money in. Look at it in another way, overseas Pakistanis will have more rupees to invest, so again lots of rupees in market will push prices of property up.

Oh yes i know this. Thx for refreshing but overseas pakistanis maybe not interested in investing in Pakistan right now, esp in the West where they have the option to invest there.

Sir in the West price of property does not rise like it does in Pakistan. You can get a three side open reasonable house in Manchester or Birmingham for 2-3 lakh pounds but price will not multiply in a few years like it increased in G-13, G-14, G-15, DHA or Bahria.

So weaker rupee along with an economy on “Artificial Steroids” will be good for real estate sector…Really?..where do you get your economics lessons?..must be Noora brothers university of ignorance!

Sir i meant from a perspective that it is safer to invest in the West. As far as Pakistan is concerned someone who does not have much choice to invest elsewhere may opt for Pakistan.

Imran A Khan: Please mind your language.

Arshad: Especially in the West, Pakistanis are going to face the music a lot now.

Pardesi is right, there is nothing like property in pakistan, the rate of return and development/demand is very good.

Brothers don’t fight, lets get back to the topic please. I am already seeing 50% to 60% increase in asking prices of DHA Phase 8 Lahore. Only during the last couple of months.

60% increase in few months in Phase 8 is humongous…

Sir check Zameen listings.

Sir jee, i am not challenging ur post...

Those, who would have invested in this period must be lucky... So investment is linked with timely decision for in and out...

It is a very expensive investment. In 2002-4, DHA-8 files were at Rs 1 to 3 million for one kanal. In 2014 the price for reasonable plots was 10-12 million. Now it is at 16-20 million.

And can you imagine, it is a developed area, but possession is yet to be given. So you can figure how high it will go once possession is given and population starts moving in. The reason for this is that Phase 8 is the best phase of all DHA in Lahore.

@Junaid sir agree with you .currently our exports are half of our imports, so from where does this 10-15 billion dollars extra coming for imports??taxes ..borrowing from banks and banks using expats Pakistani remittances for lending to gov for imports ???.......you stop remittances for 1 year , and you will see a collapse of entire economy with possible default statues.

Pardesi your post make some sense , but its the trust which will change the direction of investment. Do you think people still believe blindly in bahria/multi games???people know where to sit in for a safe sailing, and here lies the worries , as all eyes focuses on DHA alone,and are triggering prices in DHA AND ONLY ALLAH KNOWS THE LIMITS or checks/reversal of such phenomenon.

Pardesi bro, the prices of Dha phase8 lahore as well as phase 7 increase by almost 20% not 50% to 60% during last couple of months.

Thanks Dk and I agree with you, sab hera pheri hai.

I hope the rupee gains in value but at the moment it is either stagnant or declining slowly. InshaAllah economy will strengthen gradually with CPEC and other measures.

Dear Sir/Ma

We are one of the leading financial instrument providers with offices all over Europe. We are major/Direct providers of Fresh Cut BG, SBLC, POF, MTN, Bonds and CDs and this financial instruments are

specifically for lease and sales, we always deliver on time and as precision set forth in the agreement. You are at liberty to engage our lease bank instruments into trade programs, project financing, Credit

line enhancement, Corporate Loans (Business Start-up Loans or Business Expansion Loans), Equipment Procurement Loans (Industrial Equipment, Air crafts, Ships, etc.) And many more, Our Terms and

Conditions are reasonable.

Email: Kratfunds.finance@gmail.com

Skype ID: sakchai Chakratok

Warm Regards,

sakchai Chakratok

GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR LEASE AND SALE AT THE LOWEST RATES AVAILABLE AND OTHER FINANCIAL INSTRUMENTS SUCH AS MTN,

CD, DLC, PB ARE ALSO AVAILABLE.