Effect Of Rupee Gains On Property Prices In Pakistan

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#1

What sort of impact one can expect with the appreciation rupee against int'l currencies especially dollar?? Is it expected to reduce now... As a major part of property investment and transactions involve overseas Pakistanis.. For example,

-- If anybody (from overseas) bought a plot in $100,000 few weeks ago... It's value in PKR would be then around 1 crore 10 lac rupees... Now will it decrease by 4 to 5 lac in open? ... Will this criterion to be expected in general? I would request all members to contribute with their thoughts and opinions!

#2

Rupee gain is good sign for country’s economy. It will have positive effect on all fields. Prices will go to stability and the people who make money with open files may suffer a bit because they normally target overseas.

#3

I think the plot prices will also effect, as in some areas they were previously unreasonably high… So with rupee strengthening it should logically correct itself to an extent.

#4

Rupee gain against dollar in last week and dollar cam down to 1$ = 106 rupee, but other side we don’t see any decrease in petrol price which is the main source of inflation. I don’t think A person who bought a plot with 1.10 crore in last week he will sell to 1.06 crore because rupee gain against dollar, I don’t think so we at the end make our calculation in rupee.

#5

Good time this year to invest in PKR, you could have made decent money just in exchange rates. Now PKR is appreciating so it would be good time later on next year to invest back to foreign currencies.

#6

Yes... Govt can't hold it long this value of pkr until ;

they make concrete steps to strengthen the economy which depends on correcting various things which is discussed many times before here...

@ Ahmed Tanoli

Locals might not be bothering much in calculating in Forex, but many people who invest from abroad, will surely not pay extra for the same thing (due to difference in forex now)... And this might make property business running a bit slow ...

#7

For me this decrease in Dollar price is temporary, unless and until Govt takes desired corrective measures for overall improvement of the economy, which is a long term project and not looking likely for me. Thanks

#8

I still think that the PKR USD rate will stablise at 115-120 per $1 by March

#9

Yes agreed. DAR sahab daaway to kaafi ker rahe hain to bring it down to 100 :)... Lets see kya hota...:) But so far the effect which we are witnessing are only due to his warnings & strong statements not out of any corrective measures (increase of investments, extending exports/decreasing imports, cutting budget deficits etc etc.) all these issues are still overwhelmingly outstanding.... The locals and overseas both are purchasing rupees out of fear of any immediate losses... So this phenomenon speed up the gain of rupee currently...

#10

Agreed with Mr.Khan comments. This could be a trick from government to purchase maximum dollars on lo- price and hike the price again in near future. Could be a big Mafia involve

#11

The best way is to increase exports and strengthen local industries

#12

First of all; rupee cannot be strenghten on the basis of political statements only. It requires complete economic strategy which is lacking at this moment. Soon, rupee will depreciate again. Secondly; its a property market, not stock market which respond propmptly to such news. During december when rupee depreciated and touched 110 against dollar, how much property prices increased in lahore / islamabad? If property prices remains stagnant in december that means rupee appreciation / depreciation does not effect promptly. It requires months to effect anything.

#13

@ Irfan! Yes you are right… But my point is that too much fluctuations and volatility to our currency may check/slow down property transactions… As it will discourage many investors especially those who are worried with devaluation/inflation factor…

#14

Pakistan is a unique country in this world. You can experience such business activities which you can not even think in any other country. For example; no foreign investment is coming to pakistan, no electricity / gas for jndustry, other countries consider us like terrorist state, even then karachi stock market is breaking records. Some times it feels as stock market is being operated in space. Similarly; whenever bahria town announce any project, everybody becomes crazy to just buy the form at any cost without knowing the location and other details of the project. You can see big shopping malls under construction in lahore and islamabad wbereas our industry is shifting to bangladesh and sri lanka. So; if you look around you will find more examples which makes our country unique.

The only one reason to all these activities are "black money". Our people has lots of black money which can mostly be injected in property thats the reason dollar fluctuation doesnt matter much.

These are just my views, you can surely differ. May be I am wrong.

#15

Dear Irfan, I agree with your views as our system is unique in different aspects. Price rise at a number of places in Islamabad in the last few months was phenominal and without any solid reasons. So, one should be ready for similar decrease as well.

#16

No Impact at all anyway, Prices will still increase.

#17

Dear Shoaib, actually the unequal distribution of every thing creates problems in the society in general.

#18

You might be right to an extent, and perhaps that is the reason that our country with all this black money corruption and un balanced distribution of wealth in the society has crisis in every sector…

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