Pakistan Real Estate 2023

Pakistan Real Estate 2023 – Analysis, Forecast & Investment Options

The real estate industry is one of the major and fastest-growing industries in Pakistan. The country spends over $5 billion in construction work annually. Today, we are going to analyze the Pakistan real estate 2021. We will discuss and predict the performance of the real estate market considering the current situation and possible future events.Despite the fact that the real estate market is growing drastically in Pakistan, the country still lacks basic living facilities, i.e house with necessary living facilities. This fact indicates that there’s still wide room for growth in this sector so that people belonging to every class of income can afford a respectable living for themselves.

Pakistan Real Estate 2021 Investment And Budget 2020-21

The government believed that the budget they present is tax-free and this is a significant achievement amid the worst economic situation of the country. However, the opposition parties criticized the budget on charges that it could not handle the ongoing financial crisis.

The budget was said to be a big economic booster, but the boom will collapse ultimately and the real estate sector will continue to decline.

The freely falling Economy

The budget 2020-21 presented by the PTI government is merely paperwork far away from ground realities. As per IMF, Pakistan’s economy is expected to decline by 1.5 percent in 220-21, while the government’s estimate is up by 2.1 percent. If we consider the government’s inflation target of 6.5, the real GDP decline will be 4.5 percent.

COVID-19 and Locust Attack acted as the final nail in the coffin of Pakistan’s economy. Unstable border conditions are another misery to the economy. The unreliable political and economic situation is further discouraging people from investing in real estate.

The Record High Debt to GDP Ratio

The property market was enjoying a boom in 2003 and 2013. The debt-to-GDP ratio was declining during both boom periods. In 2003, the Debt to GDP ratio was 50 percent, while in 2013, it was 65 percent. However, the debt to GDP ratio is 86 percent at the moment and still rising. So, we don’t have high hopes about the prices of real estate in Pakistan at least in the near future.

Declining buying power; rare end-users in the market

The local Pakistani professionals, businessmen, and expatriates are the potential customers of the real estate market. However, the declining purchasing power of these local Pakistanis is one of the many concerns of the real estate sector. On the other hand, Gulf countries have passed a law asking private companies to reduce the salaries of overseas workers by 40%. By this ratio, the remittances in the year 2020-21 are expected to decrease by around $5 billion, the amount is equivalent to what the government required to build 1 LAC house. In simple words, bad days for our real estate will continue.

Economy & Future Of Real Estate Business In Pakistan

After 75 days of closure due to the COVID-19 lockdown, production throughout the country resumed in June. The country’s largest auto tire maker, General Tyre and Rubber Company posted that net sales increased by 42% in the first quarter of 2020 as compared to the 3.2 billion of last year for the same time. The growth in sales is also partially due to the government’s efforts to curb the illegal imports of tires.

The cement industry also posted significant growth in sales in the current year as monthly sales hit a record high in October 2020. The mills shipped 5.73 tonnes to consumers. The domestic consumption also increased by 15.8 percent to 4.85 million tonnes from 8.19 million tonnes in October 2019. In terms of Export figures, a rise of 11.58 percent from 784,433 tonnes in October 2019 to 875,266 tonnes in October 2020 was observed. Cement sales reached 19.3 million tonnes in the first quarter which is 19.3 percent more than the last year for the same time.

Talking about another major industry of Pakistan’s economy i.e telecommunications, the government has announced the launch of Spectrum Strategy 2020-2023 to assist commercial telecommunications operators in their network planning investments due to a significant rise in demand. Mobile data traffic in Pakistan rose from 165 percent to 69 petabytes in 2017 to 128 petabytes in 2018. Data use increased from 0.34 Gb/user/month in 2016 to 1.75 Gb/user/month in 2018.

Exports rose by 10.5 percent in October 2020 over the last month, with a rise of US$ 196 million to US$ 2.1 billion. On the other hand, imports decreased by 15 percent to US$3.7 billion in October 2020 by US$647 million compared to the previous month.

Real Estate Contribution To Pakistan’s Economy

Pakistan’s real estate sector is one of the major pillars of Pakistan’s economy. As per the World Bank’s Calculation, the size of the country’s real estate assets is between 60 and 70 percent of the country’s total wealth; if we extend this estimation to Pakistan, the average size of our real estate sector is between $300 and $400 billion.

Pakistan’s Real Estate did not perform well due to several financial, economic, and political challenges. But we can hope that things will get better if not immediately then gradually in 2021.

Real estate has slowed since 2017 due to political turmoil and volatility in economic and financial policies. With no incentives for investors and ban imposition on non-filers played a key role in deteriorating the real estate sector.

FBR’s strict regulations on non-filers’ banking transactions further discouraged the investors from investing their into the real estate market in 2018-19. The inability to utilize the development budget led to a contraction in the building sector is another factor to contributed to the real estate sector’s downfall.

One of the few reasons we believe to see the boom of Pakistan’s real estate market in coming years is CPEC. China Pakistan Economic Corridor is the iconic project between the two countries that has the potential to change the dynamics of Pakistan’s economy. The significant economic zones of CPEC are yet to be established, however, the benefits of CPEC can be seen with improved power situation and partial completion of the Lahore-Karachi motorway.

Pakistan’s real estate market is quite unpredictable. Therefore, you should be very vigilant and aware of the latest developments and updates related to Pakistan’s real estate market. Being aware of the current real estate conditions will help you make a rational and lucrative decision regarding real estate.

Property prices in Pakistan usually don’t go up even during inflation and uncertainty. This fact can make the investment much more challenging.

The real estate industry is fully capable of persevering through difficult times and that’s something special about this industry. Fair property values are the need of time to make the property affordable for every citizen which will be the ultimate success of the country’s real estate market.

What 2021 has for Real Estate?

The pandemic and uncertain political situation have affected the real estate market in 2020. We can hope things can get better and the real estate market will start to attract investors in the years to come

CPEC is an important venture. The economic corridor offers a source of overwhelming foreign investment. The web of roads under the megaproject is connecting Pakistan’s Gwadar port to China’s Xinjiang capital. This corridor will not only facilitate the economic activities of both countries but also open new doors of opportunities and growth to Pakistan’s real estate market. As the hub of CPEC activities, the demand for real estate is expected to rise in Gwadar and its outskirts.

2021 And Karachi’s Real Estate

Let’s discuss how Karachi’s real estate market is expected to perform in 2021 and what are our recommendations regarding investment in Karachi’s real estate market.

Karachi, the country’s largest city and the world’s seventh-largest metropolitan, is the major business hub of Pakistan. With ample opportunities for every sector, the Real estate sector still rules the city as the best investment domain.

Area Wise Recommendation For Investment in 2021

1) Gulshan E Maymar

Gulshan e Maymar is Karachi’s one of the most famous areas of Karachi. Maymar, located in the heart of Gadap Town, is a sophisticatedly designed area that has beautiful and well-trimmed parks, greenery, and serenity. Maymar is also known as Mini Islamabad, as the town was planned along similar lines as that of the federal capital. Gulshan-e-Maymar essentially consists of 10 sectors. According to recent research, Gulshan-e-Maymar is one of the most favorite destinations for renters. The peaceful and Calm environment of this vicinity is the key factor behind its rising demand. Let’s explore some of the other factors that attract people to opt out Maymar as their most preferred rental option in Karachi.

Gulshan-e-Maymar saw a significant improvement in terms of prices in 2019. Construction activities in Maymar are also in full swing due to the rising demand for housing on the outskirts of the city. Up to 70% of Maymar has already populated and still, the demand is high. Maymar has also attracted some of the city’s reputable builders such as Saima builder, Ayesha Builder, and Mehran Builder. Interestingly, all the new projects in Maymar are having a price tag of between 9 to 11 million. Therefore, Maymar has a lot to offer in the residential as well as in the commercial sector. We can say that Maymar will continue this potential in 2021 as well.

Latest Prices of Gulshan E Maymar

2) Scheme 33

Scheme 33 is our second recommendation for the year. Prices in Scheme 33 increased significantly in 2020, therefore, whether you’re a genuine buyer or investor, we suggest you invest in those societies of Scheme 33 where the lease is available along with all basic utilities such as water, electricity, and gas, etc. my key society of scheme 33 is Saadi town, Saadi garden and peer Ahmed zaman for investment purpose. No matter which society you choose, never forget to visit our list of illegal societies to ensure your hard-earned investment will not go in vain.

3) DHA City

DHA city is our third recommendation Defense Housing Authority is another massive success in the paradigm of house schemes that are under the administration of the Pakistan Army and mainly takes care of the development of residences for military officers that are in-service and retired.

The construction of the Malir expressway is another major development complimenting the DHA city. We can predict a lot of potential and significant jumps in prices for DHA city in 2021. We recommend you go for DCK if you’re interested in making a long term investment. DHA city has the potential of returning 100 percent of the investment within the span of three years.

Latest Prices of DHA City

4) Garden City

Garden City is our fourth recommendation for 2021. The project is situated near to Gulshan-e-Maymar and has all the utilities. Due to the significant rise in Maymar’s prices, Garden city experienced a boom in 2020. So, Garden city can offer a good alternative near Maymar.

5) Taiser Town

If you’re short of capital and really want to invest with a very minimal budget, our fifth recommendation for you is Taiser Town.

Property Ranking Analysis Of Pakistan

Pakistan has made significant improvements in the Property Rankings. The country is on the right path to establishing suitable conditions for corporations. As per the study of “Doing Business in 2020”, the World Bank has placed Pakistan at 108th position globally. Which is better than Pakistan’s previous 136th position. The jump of 28 spots indicates the enhancement in the economic environment which will ultimately draw direct foreign investment in the country and create job opportunities.

According to the World Bank, the flow of foreign investment and the widening of the market have a direct link to the valuation of real estate. The better economic factors suggest that the coming year will raise the market for luxury and commercial housing societies.

Our Advice for Pakistan Real Estate Investors in 2021

As a real estate investor, you should explore various asset categories of real estate before making your real estate investment such as residential land, apartments, homes, and commercial units such as offices, multifamily, industrial, and farmlands. You should ensure that you invest in such tangible assets instead of just a piece of contract or paper. We never recommend you invest in misleading products and documents claiming to be real estate but have no physical existence and actual value.

Pakistan’s real estate approach is very solid. The real estate market attracts not only local but also foreign investment. Other than that, several residential and industrial projects across the country are under development that provide lucrative investment opportunities. These properties are legal with investor-friendly repayment plans.

Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.

Pakistan Real Estate 2023 – Analysis, Forecast & Investment Options

The real estate industry is one of the major and fastest-growing industries in Pakistan. The country spends over $5 billion in construction work annually. Today, we are going to analyze the Pakistan real estate 2021. We will discuss and predict the performance of the real estate market considering the current situation and possible future events.Despite

5 Considerations Before Buying a New Construction Home

Buying an existing or new construction site is the most exciting day for many people and also the scariest. When a person rents an apartment or house, they cannot make any changes and must get permission to even paint a room. But they also don’t have to worry about maintenance and repair costs. When something goes wrong, a person just calls the landlord to ask for repairs. When a family buys a new home, they are responsible for care and repair. However, they can make any changes and make any decoration they want and can afford.

Buying a New Home

Buying a new construction home is almost everyone’s dream. But not everyone can afford to be the first owners of a new home. The next best ticket to home ownership is to buy a pre-owned home and remodel or renovate it according to the tastes and needs of a family. Buying a brand new home is still a dream for many homeowners who could start with an existing home and then move up to a new construction home when they can afford it.

But remember that buying a new construction home can also be a hindrance. It is not the same to buy an existing home. There are important considerations for the new home buyer. Here are five notable things:

Before You Start Searching for a Home

  1. Before starting the search get a good property with experience in selling new construction houses. They can protect you and make sure everything during the sale is done correctly.
  2. Find the best lender before starting the home search. They will tell you how much you can pay in payments and interest rates. The right lender can save a house by buying money. Understand all the financial options available to you. Get pre-approval for a loan before starting the home search.
  3. Before the home search begins, look at the different new construction neighborhoods and narrow the search to neighborhoods you can afford, and that appeal to you considering amenities and a convenient place to work and schools. The perfect house in the wrong neighborhood will not be a good choice. What are the amenities the builder plans for the construction? What is planned for the surrounding area in the near future? What is close to the planned neighborhood now? No one wants to be on a direct flight path from an airport or near a factory with harmful fumes.
  4. Look at the builders for the developments you’re considering. Check online reviews and ratings on customer satisfaction. Check with the Better Business Bureau for ongoing purchase complaints. Drive along to homes they’ve built, and take a look at their online website for house plans they offer. Take a look at their price compared to other builders. Ask the Agent that you have chosen to critique the good and bad points of each builder you consider.
  5. As a family, decide what is needed in a home and what every family member wants. Make a priority list of factors that matter in a new home, and try to get as many items on the list in any home considered. A home that does not meet the needs of a family is just not suitable. Don’t settle for a home that won’t be convenient and comfortable to live in.

When You Buy The New Construction House

Here are five considerations when looking for and buying a home:

  1. Remember that the model houses you visit are not the houses you will receive. Your house is yet to be built. Even if you specify that you want the same plan as the model home, it may not be the same. But you can customize each house to your liking. Paint and other finishes make a big difference without changing the cost if you stay according to the construction plans. If you like a floor plan except for a few changes, you can get the changes to the floor plan but it will cost more.
  2. Write down every detail of the new home purchase. This includes colors and finishes, floor plan changes, deadlines, and any other changes and choices. So if something is not so agreed upon, you have written proof of your choices.
  3. Get as many guarantees as possible and receive them in writing. This includes the home finished on time, the quality of construction and customer satisfaction. Ask these questions:
    • What percentage of the homes in the project are sold?
    • Who will you work with during construction?
    • What features are included in the price, and what improvements increase the price of the home?
    • How often can you visit the home during construction?
    • What happens if the home completion is delayed?
    • How are buyers ’concerns and complaints handled?
    • What measures are being taken in construction to affect domestic energy?
  1. Timing is important. When will construction take place? How long will it last? A new home can take from seven months to a year to complete. If you can’t wait that long, consider buying the model home if it’s the right floor plan and appeals to you. Model homes are sold when a large percentage of the homes in the development are sold.
  2. When the home is finished, be sure to receive an independent home inspection and request a correction of defects prior to closing. Builders make mistakes, and it’s best to find them and fix them before closing. Home inspectors see things a homeowner would miss. Then pay attention during the tour and take accurate notes on things that are not appropriate. One of the advantages of buying a new home is that you don’t have to worry about repairs or things breaking or failing for quite some time. So make sure there are no defects before you close the house. The builder will be more willing to repair defects prior to closure.

Buying a new construction site is exciting. Most people buy the biggest house they can afford, and then experience a few surpluses due to changes that increase that investment. Try to avoid any costly changes during construction. Once the closing has taken place and the family has moved into the new home, make sure the furniture and belongings are correct and make sure the unpacking is done promptly so that the family can enjoy living in the new home. Meet your neighbors as soon as possible, and drive around the neighborhood to get to know the family, where all the amenities are located. Now, enjoy the new home.

For more information on the real estate sector of the country, keep reading Feeta Blog.

5 Considerations Before Buying a New Construction Home

Buying an existing or new construction site is the most exciting day for many people and also the scariest. When a person rents an apartment or house, they cannot make any changes and must get permission to even paint a room. But they also don’t have to worry about maintenance and repair costs. When something
4-Advantages-Of-Installing-Tankless-Water-Heaters-In-Your-Next-Flip-Home

4 Advantages Of Installing Tankless Water Heaters In Your Next Flip Home

A house reversal is a process in which someone buys an old house that needs extreme renovation and renovation, and then resells it for a higher price. When it comes to home throwing, you need to make sure that you come up with a good quality home so that you can attract more people to look at and eventually buy your property.

One of the best things to add to your next flip home is a tank water heater. A water heater has become necessary for those who simply cannot find comfort in showering with cold water. A water heater is also ideal for operating your dishwasher. With that, you need someone reliable who can install tankless water heaters in your homes, such as CE Pipe and Heating.

Moreover, listed below are the advantages of why you should install without tank water heaters in your next home.

1. Saves Space

Saves-Space

When you go home, you may save as much space as possible so that you can use the extra areas for additional features. These could be added storage space, a sink or even a work table.

When targeting a traditional water heater, you may have trouble using the area because you need to consider the tank space. With a tankless water heater, however, you can save a lot of space, as you will only need to install a device on your wall. With the saving space of an invariable water heater, you can fully utilize the extra space into something more useful that could add value to your thrown home.

2. Saves Energy

Save-Energy

Without a tank water heater was very popular because of its energy efficiency feature. It only heats water on demand, instead of storing a large amount of water inside a tank and heating it throughout the day.

Because without a tank water heater is cost-effective, potential buyers would be more interested in your home because they know they will save a lot of money on energy costs. Without a tank water heater uses energy only when you turn on the faucet or the shower cap, so it doesn’t continue to work even at night.

Every home buyer would like to save money, especially when it comes to reducing their monthly service bills, as they are the main culprit as to why monthly expenses cost more. With a tankless water heater, they can dramatically reduce their electricity bills from 8% to 50%, depending on usage.

3. Promotes Excellent Farm

Promotes-Excellent-Farm

If you go home and you were unable to sell it immediately than anticipated, you may want to purchase items and features that are sure to increase the value of the property. With high-quality items, you can be sure that your property would still be in the best shape even after so many years.

Without a tank water heater, it can last up to 20 years, twice as long as the conventional water heater models. Along with that, a tank water heater also gives a long warranty, so you can guarantee that you will have a reliable water heater in your home that you can quickly repair after it has developed damage due to wear and tear.

That’s why you need to buy your tank water heater from a company that has been engaged for years so that you can guarantee that they will serve you well when you need to ask for your warranty claim only if your water heater is not working properly.

 

4. Promotes Comfort And Comfort

Promotes-Comfort-And-Comfort

Everyone wants to buy a home where everything is convenient and comfortable to use. While a water heater can help provide an adequate amount of heat while you shower or take a hot and relaxing bath, it will be best if you can get hot water on demand, so you don’t have to wait too long if someone has already used heated water in front of you.

 

Conclusion

A tankless water heater provides many great benefits for every homeowner, especially for those people who want easy and economical features. If you are a house pinball machine, it will be ideal if you get what most people want so that you can increase your chances of selling your house quickly.

Without a tank water heater can be one of the home investments that will pay you back, even for the new homeowner.

Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Architrcture, Lifestyle and Interior Design.

4 Advantages Of Installing Tankless Water Heaters In Your Next Flip Home

A house reversal is a process in which someone buys an old house that needs extreme renovation and renovation, and then resells it for a higher price. When it comes to home throwing, you need to make sure that you come up with a good quality home so that you can attract more people to
Investment-In-Commercial-Property-In-Pakistan

Investment In Commercial Property In Pakistan

Commercial real estate in Pakistan has different characteristics that distinguish it from a dwelling house.

It is not a simple job to invest in commercial real estate. Before investing, there are also things to look at. Business investment in Pakistan includes the choice of the site, the number of feet, how many people visit the region per day, price, price for money, and so on.

It is just as difficult to find the right property for your company, whether it is rented or purchased. Property is another aspect that needs to be targeted in the form of the company so that the investment is not lost.

That is why there are some outstanding advantages and handy tips for investing in commercial real estate in Pakistan.

Equality

Equality

By building equity in your real estate business, you will use it to further expand your business without jeopardizing your business. This helps you deal with the development of your company more flexibly.

It also gives more options when the retirement period arrives. As a company owner, you can either directly sell the practice and underlying property during the retirement period, or just sell the practice and rent a commercial property that provides a source of income.

Good Thanksgiving

Good-Thanksgiving

Investments such as stocks do not allow for anything more than buying and selling, however, provided requirements are met and necessary permits from a local authority are secured, commercial homeowners can invest in their real estate.

A commercial property owner in Pakistan can upgrade, restructure the property outside or inside, increase rents or even modify its zoning. Inflation will bring value to current features as well. While new developments may cost more than building older properties, existing sites and the more recent local construction are still growing in value.

Tax Benefits And Maximum Returns

Tax-Benefits-And-Maximum-Returns

It can be a dynamic place to invest. Unfortunately, it is not only black and white as a profit generation. Taxes and other external conditions can also affect business activities. These elements can be used to your advantage when working with real estate.

The value could rise in terms of market valuation and financial value for you, but over the years the building itself would certainly decline. The direct decline indicates that the physical value of property decreases over 27.6 years. Meanwhile, after more than a decade, other features will fall apart. This loss will offset a market value gain that actually contributes to a better outcome.

A competent accountant would require these considerations. However, in most markets, such resources are not open. Here is another explanation for preferring industrial ownership over other solutions.

Cash Flow Perspectives

Cash-Flow-Perspectives

You must pay the premium for an additional cash flow of rental income if you own a commercial property with room for tenants. Tenants are willing to use their money to pay for the purchase of their land, offsetting the expense of saving.

It is important to note, however, that tenants include responsibility for property maintenance, which will diminish the presence of the main commercial properties.

Practical Tips For Investing In Commercial Real Estate In Pakistan

  • One must understand the state of the market, including tariffs and the value of land, so as not to deceive man. It is extremely important to keep yourself up to date. In relation to residential and commercial property, there is a great distinction, so the characteristics of both forms must be understood.
  • You need to prepare yourself so that you know when, why and how to invest in company property because there is only one factor you need to consider when investing.
  • You need to remember whether the position would offer you capital growth or not, and whether the site has construction potential or not.
  • The land has or does not have the most important lease option. If you do not want to use the feature yourself, you must rent it.
  • The land should also include important amenities such as parking lots and electrical supplies.

For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.

Investment In Commercial Property In Pakistan

Commercial real estate in Pakistan has different characteristics that distinguish it from a dwelling house. It is not a simple job to invest in commercial real estate. Before investing, there are also things to look at. Business investment in Pakistan includes the choice of the site, the number of feet, how many people visit the