Traditionally, property prices in Pakistan have risen - sometimes prices have risen dramatically and sometimes they rise slowly. But almost always they rise instead of slumping. However, during the last 5 years, prices have dropped in real terms (which allowed middle class people like me to enter the market). Even if the price of a plot stays the same numercially for example a plot worth Rs 5 million maintained its price range at Rs 5-5.5 million in 2-3 years, the plot has actually lost its value because of the effect of inflation and rupee devaluation. The reasons for price slump in last 5 years are more than one...international liquidity crunch, bombings, absence of governance by the current rulers, selfish political decisions by ruling elite, economic decline, unemployment, energy shortage etc. etc. etc. BUT unfortunately all of these reasons join together to form ONE big reason for property slump: Lack of Hope in Pakistan....everyone wants to move abroad! almost all of the younger generations wants to leave Pakistan. All the dreams are of moving to UK or US or ANYWHERE...even 70% of tv dramas are showing this dream to people of life in foreign countries. Generally, very high property prices are not a good sign...because investment is going into property instead of shares, industry etc which are good for economy and job generation. If the prices of real estate are low, this means wealth is moving to the business sector. HOWEVER, in the current circumstances, wealth is not going into property and it is also not going into business either. THEN Where is the real money going? I am afraid it is going out of Pakistan because people dont want to invest n a country where they think there is no future or there is an uncertain future. Some overseas Pakistani have still not lost hope. People inside Pakistan tell me all the time that dont keep investing all your money in Pakistani real estate, it may all goo to waste...what will you do with your plots when there is no economic growth and no jobs for you kids. They tell me you should invest in the Gulf where you are and that will also give you residency rights for those countries. HOWEVER, I will keep investing my hard earned money in Pakistan because whenever I invest in Pakistan I actually poll ONE VOTE in favour of a bright future for Pakistan. Lets all do it.
Because a lot of money went into property and prices shot up for a few years mean't that developers were encouraged to launch large projects to capture the money going into the sector. As a result of this and global recession prices have in real terms dropped since then however it will have created in a decade or so vast housing in reasonably well planned housing schemes where middle classes can have their homes and raise a family.
@Pk1 .... You may sound patriotic but frankly speaking your views seem unrealistic â€¦ btw your buying a plot or many overseas Pakistanis buying 100â€™s of plot will not help Pakistan much! Buying a plot or having your own home in Pakistan is just a requirement or a necessity of overseas Pakistanis! We are not doing any favor to Pakistan by doing thisâ€¦
When an overseas Pakistani invests in real estate in Pakistan, this means (i) there is foreign exchange coming into Pakistan; (ii) he is contributing to investment in Pakistan from abroaf. We ask other countries to invest in Pakistan, why dont we first do the same ourselves. How do we look asking for foreign investment in Pakistan when we ourselves dont invest in Pakistan because of uncertainty??? Why should the foreigners invest in Pakistan when oveseas Pakistan are not investing in Pakistan ? The Pakistanis inside Pakistan have little choice of investing abroad any way because of the foreign currency restrictions and visa problems. But overseas Pakistanis have an easy choice to invest outside Pakistan; and my point is that they should exercise that choice in Pakistan's favour and invest in Pakistan instead of abroad.
Overseas Pakistanis have made an immense contribution towards Pakistan, whereas the locals have just looted the country, and ruined it. Overseas Pakistanis do not need to do more. However Pakistan and Pakistanis need to appreciate them better and facilitate them more, instead of always trying to create hurdles for them. Once they get better treatment automatically investment will further increase.
The fault lies with all of us Pakistanis including overseas Pakistanis. We ALL have the responsibility to fix the country. If we overseas Pakistanis invest our money in Pakistan, we will be forced to return and work for the country's betterment. You know the reason why our politicians don't fix Pakistan? Because their stakes are not in Pakistan abroad. Our president has huge mansions in the UK. His sone is studying in the UK and this family always moves abroad when they are out of power. Nawaz Sharif also has business interests outside the country. Why should these people work for the improvement of Pakistan?? We the overseas Pakistanis MUST invest in Pakistan and only then will we have the motivation to improve our Pakistan. Overseas Pakistanis have enough money to even invest in the power sector. Instead of inviting greedy rental power companies to invest in the power sector, the Government should help overseas Pakistanis to create consortiums of 100-200 investors to join together in one power project for 3 sectors in Pakistan. In this way when the overseas Pakistanis return to Pakistan, they will have a ready and running business for their savings and they will have plots in areas where there is no load shedding and no power cuts. This process can be expanded to the whole country. Pakistanis working outside will start coming back if this happens. Brilliant doctors, engineers, IT professionals should also be offered respectable positions for teaching at universities and colleges even if they are 65 plus in age so that they can help create a new talented generation. I have all my hopes on Allah. InshaAllah Pakistan will come out of this mess. Who knows may be Imran khan can win the next election. When he was captain, players used to do gambling. I remember, he said in an interview: "I tell the players if we bet our money, let us bet on Pakistan's victory - this way we'll try our best for Pakistan's victory." Now look what he is doing; he has invested all his money in Pakistan while the leadership of other major parties has put their stakes outside Pakistan.
No doubt Pakistan has immense potential. Overseas investors do invest huge amounts in Pakistan, without which a lot of development in our major cities would not be taking place e.g DHA, Bahria. However these investors need to get better treatment from the Pakistanis that have ruined the country. Overseas Pakistanis have to face lack of law, corruption, crime and sharp business practices. Everybody wants to milk them. As soon as you get off the plane harrassment starts. They cannot even build decent roads to take you in comfort to your home. The locals want to live in expensive houses but are not prepared to spend a rupee on the street outside. Many local people have got rich off us. We doing a lot more than our size , however now the locals need to do more in return. We are more patriotic than the locals. The well off locals are moving their money abroad while we are investing in Pakistan.
Arshad bhai, The locals and overseas ones are all Pakistanis. All of us have messed up this beautiful country. We all voted for rascals (or did not vote at all), and now the children of these rascals are getting ready to do the same treatment to the poor people of Pakistan. Their property is outside Pakistan; inside Pakistan they invest only if they can get anything through influence and cheating. We have voted for dacoits. But all of us are doing the same to each other. Corruption and zulm have become systemic and are now becoming a part of our culture. Believe me even the so called free media is owned by business tycoons who are blackmailers; a few of the top ones are playing to the tune of their masters in India, and the anti Pakistan secular forces within ourselves. The overseas Pakistanis are generally good muslims and good Pakistanis. We should come back to the country and play a positive role. Otherwise there will be no more a rosy Pakistan for our retirement.