With business activity picking up speed after elections, Gujranwala’s real estate market is waiting for the right recipe that can work in attracting a large number of investors and buyers in the market. On Zameen.com Trends, three localities have remained as the most preferred sites for investment. These are:
The real estate agents of this area believe that in the next 2-3 months, the market will rightly pick up pace and attract investment. The market has been stable during the last few months, and the agents want to get past this state now. For the most part, rapid activity will only be recorded when there are more people in the market.
What is happening right now?
According to Hasan Basra from Kings’ Real Estate, the market was doing much better before the elections, but is only giving an illusion that there’s been massive improvement during the last week. He attributes this to the appreciation of the rupee which is making it seem like the property prices in Pakistan are increasing for overseas traders. This illusion of property price appreciation, according to Basra, is resulting in properties worth PKR 1,100,000 being sold at PKR 1,300,000.
Other property dealers, Rana Adnan from Property Master and Umair Jamshed from Ideal Real Estate Consultants & Developers believe that the market isn’t going to pick up speed just because of elections and the wave of positivity that can be observed in the stock markets. They are of the view that because real estate sector is a different market altogether, it will take more than that. Real estate reforms and taxes are the most important variables affecting the real estate market and so the new government would have to make sound policies that would incentivise investment here.
During the last two fiscal years, the government levied taxes that curbed investment and buying in the real estate sector, as opposed to strengthening it. As a result of this, this new government would have to ensure that investment-friendly reforms are introduced; these include capital gains tax, advance tax, specific provisions for both filers and non-filers.
According to Adnan, the Amnesty Scheme, which ended yesterday, yielded good results. People were able to declare their assets, mostly foreign, and would now be able to invest it in Pakistan’s real estate. However, he adds that where the amnesty scheme has allowed them to declare their assets at virtually no cost, investment here wouldn’t be so costless. He believes that most people are waiting to see if such an investment can be done and will strike at the right time.
Gujranwala’s real estate is a market that investors should keep an eye out for. The fact that news of elections hasn’t given the market a massive boom, points to the fact that this is an established market and will take more time to take full effect. If you are looking to invest in the market, there are a host of projects you can choose from. For now, you just have to wait and see what the new government plans on doing.
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