The economy has started to improve. The private sector credit from banks has gone up by over 200% against same period last year. Rupee has become stronger. Will this not divert money from real estate sector to businesses and thus result in further decrease in real estate prices. Then people who have actual need of plots/houses will be left.
Well this is a very long debate... To cut short its not that easy and quick to achieve in case of pakistan... To gain common public's trust in investing their savings elsewhere other than real estate is a very tough thing to ask... And if it will happen it will be a gradual and slower process and it will be correlated to a number of other factors as well .... And that requires revolutionary improvements...
So i dont think so it will make any quick impact on real estate prices in the coming time...
Thanks Shoaib, It will surely impact slowly but the other side is that the real estate may not attract that fast and big investment as it was in the previous periods.
No. With the improvement of economy or security situation (as you are hoping or foreseeing) will attract investments for everything including real estate development as well...
or you can put this in that way that realestate will grow in parallel with the growing economy.
with the rise of economical activity & industrial growth and living standards in any society, realestate values propotionally rise in urban centers and suburban areas .... This is a common principle.
A lot of examples are there.... Duabai as an example.
The investors who inflated real estate prices too much in a very short time will find better avenues to invest in the economy. Further the economy does not increase at 100% in 6 months like many real estate prices were increasing. If the investors turn towards economy then we may see a fall in prices from low to medium drop depending on kind of society and then rise gradually with the economy.
Well... You can't predict this in case of pakistan ... Anything can happen their. :)
and finally if those shrewd investor are getting 100% by doing nothing ( i mean by getting hands on and off on files of some societies only) then why would they in large numbers turn towards some kind of nascent and risky businessess...
This thing only time will tell.
But generally i think it should be the case... If people with wealth in our country could do productive work... Then it will be collectively much more beneficial for our economy than burying money in property...
This is again mainly duty of authorities to pave suitable pitch for the rich to encourage them for true revenue generating activities.
Files of many societies that were bought for own of around 6 lakh - 1 million have turned into a piece of junk paper.
The investors created hype, made money and ran away at appropriate time. Now those who purchased at peak of dealer created hype are the losers.
Only those societies are progressing where there's real construction going on. And the situation is expected to remain same in the near future.
And yes, the current govt. Has the reputation of being business friendly. And industries which were closed during previous regimes are back on their feet again. So expect more investments in business and further downfall (nose dive in some cases) in real estate.
There is another thougt.
If the economy grow. The common man can become prosperous. More people will think to buy or built their homes. More demand of living units can increase the prices.
So we can say that a good trend in economy can bring good trend in real estate as well.
Usman Bhai,
Mian Brothers always take panga with Army and we can see that nowadays.
Kargil II might happen in case of negotiations etc
PMLN seems business friendly but trust me, they ruin economy.
It is not necessary that this govt will complete 5 years, I dont think so as lawyers/media will soon turn its guns against the govt.
So sit back and watch. Real Estate is going no where.
May God forbid… Any such thing should not happen again!
With the improvement of economy and new business horizon. People will shift their money from real estate to some real stuff…
And whats that real stuff would be ?
Please elaborate!
With the current strenghtning of Rupee plus Pakistan is about to get Coilation support fund from USA very soon, Dollar will loose it's value more, that is a good news, Dollar will come till 100 Rs.
This will make the Real Estate prices stable, no more sixers overnight.
Genuine demand will always remain in market certainly.
Plus the developed areas/ready possession plots they will not lose value where as files etc will depreciate.
To MB ali every plot previously have files so you cant say that files are junk papers thanks
Anyone told me today that dollar is expected to decline till 99 rupees…
Very healthy discussion going on.Property investors must read this thread.Shoib and M.B Ali, you guys impreassed a lot with your discussion.Keep it up guys.Agreed with nearly all the contributors:)This discussion could give guideline for investors where market could head towards in coming year or so at least.
@Junaid,
Yes, you're right. But as Nasir Sb said, no overnight sixers.
Govt. Will also be getting billion dollars from 3G auction and may well get 800m from etisalat (PTCL). That means dollar may well go down below 100 mark...!!!
Gold is already seeing downwards trend. Real estate is poised for the same...
Today one of my frind in lahore pakistan told that with current downfall of dollar, he contacted his bank manager to convert 12 lac rupees to dollar (as he thinks it the best time to shift back).... But manager told him to put on his brakes for some more days as its expected to get lower than 100...
Also he told me that open market dollar is scarcely gettable.... And dealers are reluctant to release it...
Well there can be a short term chance for Realestate stock market (i.e. Files) to get down considerably with this development. But impact on bigger names on-ground balloted propert will be effected ?? i have some reservations on that...
Good healthy discussion. Thanks to all. I think nothing will happen overnight. We are trying to predict the most likely trend in real estate. Dollar is down to 101 today. I think the main reason is due to deferred oil payment facility from Saudia. But knowing a Chartered Accountant Ishaq Dar I think he is letting the dollar fall to his level and then buy them from open market at much lower rates. Lets see what happens.