Dollar Value And Property Prices!

Dear valued zameen contributors:

* What is the relationship between the value of us$ and the property prices in Pakistan?
* What is the outlook of us$ in near future. (1 month, 3 months, 6 months and 1 year)?
* How the expected value of the us$ may influence the property prices in Pakistan?
* Is it a good time to get rid of us$ and invest in Pakistan?
* Is it a good time to invest, at all, in properties in Pakistan?

I think it only matters ,where payment is made in us dollars from booking and down payments till final installment ,OTHER than that ,us dollar value has very little influence on property rates in Pakistan, bcz in Pakistan majority of the real estate business depends on cash payments by buyers ,without taking loans from bank, so no relation of interest rates ,or currency rates ,return rates etc.

ITS always good time to invest in property in Pakistan, but do so wisely and carefully after good research.

US dollar is a highly foxy currency,its only our wk rupee that gives leverage status to us dollar,and our rupee future prediction depends on the rate of corruption in our country , NOW use your farsightedness for decisions

I have the impression that overseas Pakistanis play a major role in investing in properties in Pakistan. And this significantly influences the value of properties.

When the dollar weakens (like it has in last three months), there is a disincentive for the overseas Pakistani's to invest in Pakistan, as in terms their local currency they have to spare more money (US 1.0 = less Pak Rupee).

They may keep the money in their local accounts, or they may go for other available options.

When Overseas Pakistani's find Pakistani properties less attractive, their prices may come down.

Does this make investments more attractive for local residents in Pakistan?

Or they should also remain away from the appreciating (not increasing) properties values?







Crore Patti Bhai, kia howa aik dam paTRi sey utar gye aap. Yeh koi political forum naheen hey bhai,isliye brah-e-karam sirf isi topic pey dhiyan dain.

Baqi, aana jaana tou laga rehta hey. Ziyada jazbati honey ki zarorat naheen.

Ok isloo

I love ur analysis



Thx for understanding Crore Patti bhai.

On the original topic. Currency devaluation could be one reason for attracting foreign investment in Pakistani real estate, but this can not be the major factor. I think, it is the price increase itself that temps overseas Pakistanis to borrow from banks and put in Pakistani real estate for short-term gains. This creates resonance at price increase as well as correction time.

The inflation and deflation is therefore artificial and you and I, with our small savings, should avoid falling for bubbles.

@Isloo ,

sir ,do you think Pakistanis borrow from banks to invest in real estate??

Banks will definitely charge more interest from them , i think 14 % plus or near it,

Inflation ,deflation ,sir ,are you referring it to property or daily commodities[edible items plus non edibles]?

in any case inflation in general ,reduces purchasing power,BUT in contrast to edible items , the non edible commodities increase in prices, so it directly have influence on property ,which must increase in prices to sustain the growth and development.

SO its very tricky in third world for inflation -deflation -and interest rates RELATION to real estate

Crore pati bhai ka bijli ka bill ah gya haa