Saturday September 20, 2014
Real estate plays an important role in the economy of Pakistan. The real estate property market in Pakistan has been developing rapidly in the last few years. Despite the problems faced by country like security issues, political instability, Pakistan property market is still doing quite well, but this sector could perform loads better if some of the issues affecting Pakistan real estate sector were resolved.
Some of the issues are described below
1- Political Instability
Political instability is one of the major problems in Pakistan and has always affected Pakistan real estate sector. Pakistan, where democracy never really got the chance to be deep rooted and the threat of martial law affects the foreign investment and then the growth of Pakistan’s property market. The current political situation of Pakistan especially “Dharna” of TUQ and PTI in Islamabad has slowdown the real estate market as the property investors are too scared to spend their money into the property market in the middle of such a volatile situation.
2- Property Tax
The latest property tax law implemented by government of Pakistan has affected the property business growth. Property taxes have been applied on all sectors including commercial and residential sector. Real estate market was doing quite well and was previously known for profit taking but is likely to slow down due to huge amount of taxes on property.
The current instable security issues like growing violence, unrests has affected Pakistan property market especially the commercial sector of Pakistan. Overseas investors now do not feel comfortable in investing in Pakistan real estate sectors thus it reduces the foreign investment in Pakistan and will significantly complicate the property market business in the country.