As famous as the moon, Pakistan property market boom is a word of mouth of every second individual. No exaggeration, the real estate sector of Pakistan is indeed witnessing an upswing at present. Many factors back this affluence and it certainly adds up massively to the GDP growth of country.
You might have some questions in your mind regarding the property boom. This article is an epitome of property boom, raising some relevant questions and providing answers to them and has been sanctioned by Zameen.com, leading property portal of Pakistan.
Q-1: What factors caused property boom in Pakistan?
A: There are various factors that back this property boom; top most is likely to be the promising nature of the sector. And funnelled by a wide array of investors, the massive investment indeed proves auspicious for the sector. Also, the current chaos in Pakistan and gradual downturn of other industries compel investors’ traffic towards this sector and with this increased footfall, the sector shows booming personae.
Q-2: What would be the effect of this boom?
A: Here, there are two facets of the picture. On brighter side, the boom in property market is indeed a source of earning for many people. Investors find it safe to invest in property, as there are fewer risks of losses associated with it. Plus, the circulation of money also creates an impetus for the economic growth of the country.
Defiantly, the darker side is a stab to someone’s dream of owning a house. Property boom where on one side provides returns to the investors, baffles the sentiments of those, who do not afford to buy property because of immense price hikes. This causes many people to somehow dwell in rented houses at the discretion of landlords. So, the gist is that the property boom enables a particular class to pile up money, while on the other hand leaves a particular class to keep on dreaming for having a house of their own.
Q-3: What is the role of Government in this boom?
A: The despicable performance of the previous government left us with onuses of loans and financial crisis. Even during the span of last government, property market did flourish, but no appropriate laws and robust strategies were made. The boom and bust of property market of Dubai, which rides high midst the top-notch property markets, is all in the news. The market which was known for its price hikes, plunged down notably, leaving abrasive impressions on the investors. This was the result of ignoring those strategies that would have enabled poised property growth.
In similitude, at present, Pakistan real estate is also relishing a noteworthy up surge. However, the current government, other than just imposing taxes on property gains, should also come forward to make robust backing strategies, so that the property market may not crack down leaving the investors with no choice other than waiting for market to resurface.
Q-4: What sorts of people are usually interested in the boom experienced by the property market?
A: Dealing in property is the sole profession of many. However, now that the property market is booming, people from every profession seem to take part in the boom. Be it doctors, engineers, accountants, business persons or other individuals from varied professions, the property market receives its part from all of them. Even the overseas Pakistanis deem Pakistan real estate as the investment haven. So, the essence is that the funnelling of investment in real estate sector is not confined to the core property investors. People from various professional fields try their luck to bag money by investing in this booming sector.
Q-5: What would be the impact of this boom on other industries?
A: Property market being in an upswing is an attraction for the investors. The likely effect of this increased footfall of investors in real estate is likely to be the inattention towards other industries. For instance, people may abstain from investing in the stock exchange seeing the security and higher return on investment the real estate sector boasts for. So, with the property market boom, the other sectors are being neglected.
Q-6: What are the future prospects of real estate sector’s boom?
A: Be it DHA Lahore, b-17 Islamabad, Bahria Town Karachi or other high-end developments, the realty sector roars for its encouraging trends. But it must be backed by fit-for-situation strategies; the strategies that may lead to the stable and apt affluence of the sector. Property experts expect that the prices are plausible to spike further in the imminent time. However, there is indeed a need of making proactive plans by government, so that the market may not crack down, leading the boom to the bust of property sector.
So, let’s see, how the current government addresses this issue. Apparently, the government seems to show the people of Pakistan a bright light at the end of tunnel. But, still there is lot more to come to see the promises crystallizing to their best.