Factors That Govern the Real Estate Market
Pakistan’s real estate market has gained momentum over the past decades now. Investors see it as a great new horizon to invest and make profits, making the market more attractive to new investors both medium and long term. Investing in the real estate market is not easy. There are many factors that affect the market, and it is essential to gain knowledge before making any move to invest. To understand the fluctuation, we need to study the factors individually. Although there are many elements including, demographics, economic growth, affordability, laws and policies, and so on.
Here are a few that mainly change the game.
The first and most essential element is the location of the property. The better the place the higher the price. Therefore, the real estate in the city center is more expensive than the real estate in the surrounding area. Location controls many other factors including, commuting, and access to facilities. Proximity parks, schools, facilities and proximity to the city are all great additions; therefore control the price of the property.
If you are buying property, the location should be very considerable. In Karachi, the most notable regions are, DHA, Clifton, PECHS and SMCHS and so on. Similarly, if you are shopping in Islamabad, places like DHA, I8, Bahria etc should be considered. Lahore on the other hand is famous for Cantt, Model Town and DHA.
No matter if you are investing in a business or buying a house, location is the first consideration. Although this will cost more than the others, this is a factor that needs serious consideration before making any decision.
2. Physical state
The second in line is the state of the property. Sometimes the state of the property is zero and the only money involved is for the location and size of plot. To invest in real estate, conditions play a vital role. If you are interested in buying a newly built house, you may have to pay more than buying an old building. It is always preferable to buy a well-maintained or new property instead of investing in a property in a poor state.
The condition of the property includes interior and exterior. Critical and intentional inspection of the property is essential. Before concluding the deal, check
for everything from murals to appliances and furniture arrangements; each plays an important role in access to the state of the property. You don’t need a house that needs a lot of repairs and maintenance if you pay a quick sum of money,
You can negotiate the price once the condition of the property is accessed. The price is negotiable if you find problems with the condition of the property. Anything damaged or broken can help you in negotiation. This negotiation will save you some money to raise the status of the purchased property.
3. Limit Appeal / Surroundings
The main element that adds value to the physical condition of the property is the quality of its surroundings. If the property is surrounded by low valued shops like mechanics etc, the value will be low. The surroundings can be improved and this improvement will add value to the property price. The overall appearance of the property makes it more expensive.
A good car garage, a plantation outside the property, a decorative driveway and lights can multiply your profit. This is one aspect that can be worked on at any time. If your house looks good from the outside, you can always ask for more price resulting in more profit.
4. Government Laws and Policies
Policies about where you live or intend to purchase property also have a big impact on its valuation. A change in policy causes a price fluctuation. For example, the recent change in the law on share buying has caused a decline in the price of shares.
When buying any property, you need to check the policies currently in force.
5. Facilities and Installations
Ease of living in the new standard of modern society and place. And usually, all newly built properties, whether apartments, built-in communities or corporations, all compete to provide customers with everything that can be arranged.
Generators, elevators, community halls, gyms, swimming pools, parking, electricity, water supply are all part of facilities and facilities. Most people
prefer PECHS instead of DHA only because of the constant water supply. Older communities and properties where such high-tech facilities are lacking often cost less.
Access to Public Transportation is another advantage to property taxes. Other facilities include, supermarkets, hospitals, parks, all add value to the properties in the vicinity.
No one is willing to buy property in an area where security is an issue. Everyone expects a safer and safer environment. Location and security go together. Because security primarily depends on the location of the property.
Inbound communities and societies are a new cart. The 24/7 security of these built-in communities is a valuable addition that cannot be ignored. The addition of guards, CCTV, a high-tech security alarm further enhances the property.
7. Demand and Supply of Property
As the world changes, so do the choice of people. The trend to buy an apartment with a picturesque view in a tall building has increased the demand for such kind of property and therefore the prices are higher.
Most people are interested in buying property in urban centers, creating a superior demand. According to the economic rules, the higher the demand the higher the price. Meanwhile, in places where property abounds available and less demand the prices are lower. On the other hand, if prices are too high, demand falls resulting in an imbalance of supply and demand.
It is imperative to study the demand and supply of real estate before buying one.
The above mentioned factors are the basic ingredients of real estate, but not limited to these. There are many factors that govern the price of the property. It is important to study every factor before making a big decision to invest in property. This article is written to educate people about property valuation. We intend to help everyone for future property issues.
DHA Rahbar Vs. Bahria Town Orchard Lahore – Where To Invest
When it comes to buying property in Lahore, the Defense Housing Authority (DHA) and Bahria Town remain two of the most common residential companies among residents.
Both areas have spectacular projects, state-of-the-art facilities and a protected climate. However, due to their construction status, house prices in some places within DHA and Bahria Town can be a bit high.
However, if you are looking for fairly cheap real estate in some of these cities, DHA Rahbar and Bahria Orchard might be your best bets.
Location of Bahria Orchard & DHA Rahbar
This housing plan is located on the main Defense Road in Lahore and enjoys proximity to Raiwind Road and the Ferozepur Road. The South Loop II of Lahore Ring Road is also conveniently accessible by DHA Rahbar, which ensures that public transport is readily available in the city, and is also surrounded by various communal dwellings, such as the Valencia Housing Society, haajaban -Amin, the Society on Housing of the National Police Foundation and the King Edward Medical Housing Society.
La Bahria Orchard a residential association is located along the Raiwind Path. Thanks to its aesthetically appealing landscape, playgrounds, parks and protected green areas, this beautifully designed residential scheme is sometimes called a luxurious landscape. It also offers safe, basic facilities and transport connectivity to its citizens on a daily basis – all necessary for a quality and healthier lifestyle.
Phases Of Bahria Orchard & DHA Rahbar
DHA Rahbar consists of 5 phases. Infrastructure work is being done in the first four steps of DHA Rahbar. The possession of plots in many of its regions has also been confirmed. DHA Rahbar Phase 2 consists of various blocks named after letter sets, i.e. Block F, Block G, Block H, Block J, Block K, Block L, Block M, Block N and Block P. Several residential and commercial buildings are under development. In addition there are also families living in phase 1 and phase 2 of DHA Rahbar Lahore.
Bahria Orchard is planned in 4 Phases, however. Furthermore, these phases include various blocks in them.
Plot Prices in Bahria Orchard & DHA Rahbar
If you are looking to buy plots, the 5 Marla plot for sale in DHA Rahbar, Lahore, will cost around PKR 49.44 Lakh on average. By comparison, the average selling price of 10 Marla house in DHA Rahbar is PKR 97.85 Lakh. A 1-channel plot in DHA Rahbar has valued at PKR 1.74 crore.
As for the purchase of prefabricated homes, the 5 Marla houses for sale in DHA Rahbar, Lahore, cost on average around Rs 1.2 crore. The 10 Marla house at DHA Rahbar is valued at PKR 2.36 crore. If you are looking to buy a bigger house, the average price of 1 channel house in DHA Rahbar is PKR 4.3 crore.
The tax on 5 marl plots for sale in Bahria Orchard is an estimated 25.53 lakh. You can buy 10 marl plots in Bahria Orchard for an estimated price of 57.32 lakh. The average price of 1 channel plot in Bahria Orchard is PKR 1.09 crore.
You can buy a 5 sea house in the Bahria Orchard for an estimated price of 64.83 lakh. 10 Marla houses in Bahria Orchard have an average price of Rs 1.88 crore. On the other hand, 1 Canal houses for sale in Bahria Orchard cost an average of Rs 1.99 crore.
If you are looking to invest in DHA Rahbar or buy real estate in Bahria Orchard, make sure you know the basics of real estate in Pakistan. This guide, devised by our professional writers and researcher on land sales and delivery, may also help in this regard.
Govt urged to introduce soft taxation regime for real estate sector
LAHORE: The government must formulate special policies and introduce a soft tax regime for the country’s real estate sector.
This was the result of the speeches made at a seminar on houses and real estate at the Commercial and Industrial Industry of Lahore (LCCI).
The seminar was attended by LCCI interim President Faheemur Rehman Saigal, Al-Jalil Developers Chairman Nasrullah Waraich, Federal Task Force on Housing Manager Zaigham Rizvi, renowned architects Professor Jason Pomeroy, Yaqoob Tahir Izhar, Akber Sheikh and Mian Abuzar Shad.
The experts noted that in Pakistan the population is growing rapidly, resulting in the expansion of residential areas and increased the need for food and other necessities.
LCCI interim president Faheemur Rehman Saigal said Pakistan is the only country in the region where residential areas are spreading every day, adding that no fundamental change in construction technologies has occurred since independence.
Citing an example from Singapore, he said in 1965-66, Singapore was one of the worst slums in the world. “But they’ve been working on it and now they have great community structures.”
He urged the government to take immediate measures to deal with the uncontrolled expansion of residential areas and consequent downsizing of the agricultural areas.
Saigal further stressed the need to bring the real estate sector within the formal economy, as it was the second largest sector in the context of employment.
The acting president of LCCI said real estate is an important sector of the economy that needs to be protected by favorable policies and a mild tax regime. “The sector has the potential to attract not only local investors but also foreign Pakistanis and foreign investors.”
He said the fungal growth of housing societies is consuming the agricultural land and is an agricultural land, Pakistan cannot afford it, suggesting that this issue could be addressed through horizontal housing developments.
“Despite being a dynamic sector with the capacity to attract huge foreign investment, the real estate sector has faced unfavorable circumstances and struggled to survive due to redundant policies and heavy taxation.”
He said the government will not be able to achieve its economic goals without the support of the business community, which suffers severely from the severe issues like attachment of bank accounts, political instability and heavy taxation on trade and industry.
Everything You Need To Know About Real Estate Investment In Pakistan
We often hear that real estate investing has a bright future in Pakistan – but sometimes it can cost you a huge fortune in the form of scams and frauds.
We know that in Pakistan real estate and real estate are spreading through many regions. Although each area is distinguished by its investment offerings and options, Karachi, Lahore and Islamabad are the three main cities in the country for real estate.
This article has all the important details about real estate in Pakistan, the investment benefits and factors related to real estate.
What You Need To Consider Before Making A Real Estate Investment In Pakistan
The following things should be considered:
Real Estate Investment Information
Sufficient real estate education is essential for real estate investors. The income from real estate investing needs to be well understood to you. Take a long time to get to understand every aspect of the property. In Pakistan, it is a growing industry and has a fast pace.
The design of a property must be high quality and smooth. It is important to have a realistic awareness of all the current developments in the real estate market in order to keep this unpredictable rate and become a profitable investor.
You can read about real estate for free from too many newspapers. Some mass media are most frequent:
- Real estate YouTube channels
- Real estate books
- Real estate podcasts
- Real estate blogs
- Real estate television programs
Both of these resources are easily accessible and convenient. Take advantage of them and try to learn from them as best you can.
It’s no joke if we conclude that real estate is definitely possible for a lifetime cash flow. You just need a workable approach.
Spend some time planning an integrated plan for your investment in the property before you spend your hard earned money.
Would you like to invest in all kinds of assets or just stay in a niche, for example? Do you want to spend as an exclusive owner or do you want to participate? Would you like to develop your investments locally or would you like to grow your investment in other cities?
Such financial decisions will make or break your investment in your home. You will receive a decent income within a limited period of time if you have a good plan in place.
Select Redeem Properties
The fate of the draw is not to get the best property. For the perfect property, you need to be diligent and polite. Before buying real estate, ask about the land, rates in the area, country styles such as whether to buy in the apartment, house or store, details of facilities and the area.
Above all, make sure that it is accepted by the municipal planning authorities. Check the property carefully to make sure all property papers are accurate and complete, keeping your eyes open for any defects.
Buy Your Property
Once the preliminary research has been completed and your real estate investment options in Pakistan have been limited, it is time to buy your house. Consider all legal aspects and advise reviewing the accompanying transition and sales articles.
Furthermore, remember your plot or home location and construction level. These variables significantly influence how fast property prices rise. Often buy property authorized by the relevant government authority so that in some legal matters you do not miss out on investments.
Things to Consider For A Better Return On Real Estate Investment
Here are some moves you can make to achieve the highest investment speed and return:
Don’t rely on one resource
Don’t rely on just agents or insecure portals to create your buying or selling cost. Browse Zameen.com’s listings for the region of the property to see the latest trend in prices. Also, contact some agents to get the trading pressure and see what prices they offer.
Make sure your property is worth it
It takes some pretext to make this move. Contact one or two agents from the buyer’s point of view and ask for the cost for your preferred home. Call one or two additional agents from the seller’s point of view or ask about pricing. The fair market value is among the listed prices, as the purchase prices are usually higher than the sellers.
Go to the previous stages for token capital
If a contract has been terminated, the buyer collects symbolic money. This is the customer’s promise that the property is purchased and binds all parties to the contract. Sign money is usually a very small percentage of the total value of the land, preferably between 50,000 PKR and 100,000 PKR.
The receipt of a sign includes the full details of the property and shows whether a conflict occurs.
Real estate portfolios do not face sudden changes such as the trading of stocks and bonds. Real estate is also very stable and rates are smoothly priced. This means that failure is less possible internally.
If you want to build your capital smoothly in a risky person, the investment in real estate is right for you.
Try to meet the other party face to face
If you are a buyer or seller, it will help facilitate the process by seeing each other face to face. You will also reliably confirm the ownership status and legal status of the property in this way.
If you are buying a home, make sure the assignment or transfer letter is reviewed by the owner’s NIC.
You may receive many benefits from a house or apartment. You can rent/lease your place, put your room on Airbnb, use it for your own home, and as the cost of the property grows, you can sell it. How incredible is it?
If you are looking for a great investment option in Pakistan, real estate is the ideal alternative for you.
Real estate offers you a reliably strong income. You can earn a monthly return of up to 20% on average. For example, you can sell it for RS.560.000 next month if you buy a property for RS.500.000 without doing anything as well. Staying at home, you get an additional Rs.60,000.
Investors usually earn property tax exemptions. You will, for example, get mortgage interest deductions. This is generally done by politicians to promote additional spending.
The complete ownership of the asset is one of the most significant and desirable factors inland. You will be wholly owned and no one will take your property from you when you buy a house, and you have all the legal rights to it.
You do not have perceptible assets and ownership of other types of investments such as bonds, mutual funds, and vice versa. That said, immobilization helps you rule your land.
Taiser Town Scheme 45 – Brief overview of History, Developments, and Future
Karachi Scheme 45 is one of the most talked about buildings in the city today. Like many other regions in the vicinity of Karachi, Scheme 45 is also seeing rapid real estate development. The project has been stalled for quite some time, however healthy real estate activity in terms of business and development is evident now after the 2019 election. Today we will explore all about Scheme 45 Taiser Town and inform our readers about the latest developments in the area.
SCHEME 45 TAISER TOWN KARACHI
As we wrote earlier about Taiser Town, this project was started in 1986 by Karachi Development Authority (KDA). Ten years later, in 1996, this project was handed over to the Malir Development Authority (MDA). After this project was submitted, MDA relaunched this project in 2005. Taiser Town is basically located in the northeastern part of the city. Upcoming well-known projects of this area include Gulshan-e-Maymar. Dreamworld Resort is another popular water park located in the same area. The project is planned to house about 2.5 million people with the area extending to about 21,000 acres. The housing structure was divided into two phases. Phase I will have nine sectors, and phase II will have 30 sectors.
The Taiser Town Scheme 45 master plan was designed by The Engineering Consultants International Limited (ECIL). The design includes a wide range of facilities and amenities such as recreational avenues and parks for families. A total of 9,500 acres of the area has been earmarked for recreational facilities of the town. The housing association was planned so that it itself would be a small town. This means that the society will include all roads for commercial and recreational activities so that its residents do not have to travel far into the city to reach these facilities. One of the attractive features of the project includes the business district along Karachi North Bypass. This is one of the main routes in Karachi, which has a lot of potential for business opportunities as the route is well connected and offers easy travel to residents.
Initially, the area was viewed slightly away from the city center. However, the city is rapidly developing and expanding which is leading Scheme 45 to fame and people are now looking to invest in this project.
SCHEME 45 TAISER CITY: STATE OF DEVELOPMENT
Taiser Town still receives NOCs from service companies. However, this should not be a critical aspect for investors, as many real estate experts have predicted that prices will rise in the coming years. Therefore, Taiser city plan 33 will give a healthy return against medium-to-long-term investments.
Speaking of the development action, according to the official website of Scheme 45, the Taiser Town area will consist of the dedicated residential sector, commercial sector and mixed buildings. However, 10% of the total area of the project will be reserved for parks, playgrounds and for other recreational activities. In addition, the project aims to provide the following facilities for 1000 apartments each:
- places of worship
- Water treatment plant
- offices for useful departments
- wedding halls
- community centers
- bus station
- local post office
- fire stations
- police stations
- parking lots
- public toilets.
AVAILABLE EVAPS IN TAISER CITY
Buyers have a wide range of residential and commercial plots when it comes to the investment options in Taiser Town. As we mentioned before, the project was classified into two phases. Phase I has relatively higher prices compared to phase II. However even phase I is quite affordable for many investors. For example, you can easily get a 120-square-foot plot in a range of PKR 6 to 8 lakh. The cost of 80 square meters is about PKR 4 to 5 lakes. In phase II, you can get plots even at a lower price.
Authorities on foot get water, electricity and other services for the housing society. All projects are leased by the government, but the MDA has put in place a proper procedure to obtain your property in the name of the buyer. This procedure should not take more than a month. Most sectors of phase I have assets available, as major development work has already ended there. However, in phase II, development work is still progressing and properties will be available in the future.
Phase I properties include residential plots of land of the following sizes:
- 80 kv
- 120 kv
- 240 kv
- 400 kv
These plots are available in old sectors. The voting of these plots took place in 2005. However plots that were recently voted in 2019. are available only in 80 and 120 sq. M. Transfer fees for the plots in relation to size are as follows
- Rs 5000 for 80 kv
- Rs 6000 for 120 kv
- Rs 12000 for 240 sq. Ft
- Rs 16000 for 400 sq. Ft
In addition, authorities work with buyers to assist them in their respective construction plans. Every development for utilities like electricity, water and sanitation has been done. Since it is a government project, the government will provide service connections only after people settle here.
Despite the fact that ownership is available, people are not yet building here. The authorities are trying to entice buyers and investors to invest here given the fact that prices are still relatively low.
As we reported earlier, the overall demand for real estate in Karachi has almost doubled during 2018-2020. The plots saw a 49% increase in demand and demand for houses drastically increased to 103%. Meanwhile, housing demand grew by almost 120%.
The increase in demand is directly proportional to prices. This means that the increase in demand raises prices. We are also seeing this in the real estate sector. The average prices of various sizes of houses have seen the following increases.
- 120 square prices rose by 35%
- 240 square prices rose by 17%
- 400 sq yd and up by 13%
The prices for plots also showed a similar pattern. The jump in market prices for plots is as follows:
- 120 square yards increased 14%
- 240 kv. Yd up 15%
- 400 and up by 22%
These figures essentially reflect the fact that the demand and value of residential houses in the city is growing dramatically. It also indicates the importance of affordable societies like Taiser Town, where investors can earn a good profit in a short time. Moreover, people can also consider this option for living purposes with a minimum budget.
Rental Laws in Sindh – Comprehensive Knowledge for Landlords and Tenants
The rental laws became part of the constitution of Pakistan in the 1950s. The main purpose of introducing these laws is to define the rights and responsibilities of tenants and landlords. The laws are almost identical for all the provinces of the country including Sindh, Punjab, Khyber Pakhtunkhwa, and Balochistan with few additional clauses due to the territorial differences. However, despite these differences, these laws ensure that a rental agreement protects the rights and interests of both parties in every aspect without violating the law.
So, if you are renting or planning to rent your property to sign a rental agreement in Karachi, Hyderabad or any other part of Sindh, today we will discuss everything you need to know about the rights and duties of both. parties in accordance with provincial laws.
Rentals in Sindh
In Sindh, tenancy laws are under the umbrella of Sindh Leased Places Ordinance 1979. This ordinance defined the regulations on rental agreements to protect both interests of tenants and landlords for almost all situations to avoid disputes and conflicts.
So let’s find out what our law covers about the official documentation and issues related to rental contracts in Sindh.
Rental agreement between country and tenant
The rental agreement between landlord and tenant must be made in writing. The agreement must be signed by both parties and it must be attested by an official seal of the relevant authority associated with the jurisdiction where the property is located. You can also get this document certified by a First Class Judge or by any Civil Judge. These are the necessary conditions for the validity of a lease.
By law, the lease agreement must be renewed annually, otherwise, it would be considered invalid in court. The landlord is entitled to review the terms of the lease (within legal limits) and monthly rent after the renewal of the contract.
About the conditions related to Rent
The landlord must charge the rental amount, which has been mutually decided by both parties and clearly mentioned in the agreement. Although there is no specific date as the deadline for rental fees, however, according to general practice, tenants must be paid no later than the 10th of each month in Sindh.
The rental laws in Sindh ensure that the rental prices would be fair for tenants as well as for landlords. The laws protect the rights of both parties. According to the laws in Sindh, the rent of real estate cannot be increased by more than 10% annually. In addition, if the fair rent has been determined, it cannot be increased for a period of three years.
Here are some of the main points on the basis of which a fair lease of any particular property is determined.
- The rough analysis of the monthly rents for similar real estate located in the same or adjacent neighborhood.
- The increase in construction costs, repairs and maintenance costs.
- If there is any new tax after the start of the lease.
- An increase in the value of the leased property on the basis of the government imposed property taxes.
The owner cannot interrupt amenities and services
The law does not allow the landlord to discontinue any of the services and amenities including but not limited to service connections such as electricity, gas, or water unless this is announced in advance and decided with the tenant. However, the interim service providers may terminate such facilities on the basis of their organizational policy. Other relevant authorities may also terminate these amenities and facilities under any specific circumstance.
Maintenance is important
Repair and maintenance of the leased property is the responsibility of the landlord. However, if the owner is unable to do so for any reason, the tenant is entitled to perform the required maintenance.
In such a case, the landlord must pay the maintenance costs. The tenant may deduct it from rental costs if mutually agreed. However, the tenant pays documented proof of expenses incurred for the repayment.
Expulsion Laws in Sindh
Upon successful completion of the lease agreement, the landlord has the right to evict the tenant on the basis of legal eviction conditions. Eviction terms are almost identical across Pakistan. However, Sindh Rented Locises Ordinance 1979 has a number of additional clauses and requirements that must be met to avoid legal complications. The central idea of the additional clauses is listed below:
- The ownership of the leased property was transferred or sold to another person.
- If the tenant causes significant damage to the property, that could impact its property.
- If the major renovation became necessary for the area or reconstruction was forced by the modifications in the building regulations. However, once the reconstruction is complete, the tenant can re-apply for the assets.
- If the owner and their legal heirs want to use the site for their personal use, they are free to vacate the property after consulting the legal authorities.
- If the owner of the rented premises is a widow or orphaned minor or elderly person who is over 60 years of age. And this fact was evident when the property was rented, the said clause for eviction becomes invalid.
- Always remember that whatever the cause of eviction, whenever a landlord wants to evict tenants, they must write a request to the relevant authorities in accordance with the law.
Here Are The Answers Of Most Commonly Asked Questions About Real Estate
Unlike Pakistan, many people in foreign countries sell and buy property through lawyers. Hiring a lawyer yourself is a very mobile process, but ultimately it reduces the risk of fraud and helps avoid legal complications. We in Pakistan rarely go to lawyers for property. We either do it ourselves or do it with inauthentic real estate. This practice leads to fraud and illegal deals many times over.
The real estate gurus always recommend involving a practical lawyer to take care of the legalities involved in real estate or at least an authentic real estate agent to completely guide you through the process. This will not only help you avoid potential fraud, but will also help you secure your investment.
The number of complications in real estate is very high. That’s why we always recommend our readers to have a basic knowledge of real estate-related things and terminology.
Today we will discuss some of the most frequently asked questions about the real estate market.
1) What is Shajra?
A detailed map of an area with land divided into pieces and each block is labeled with a specific number is called Shajra. Shajra includes all the details of each khasra, such as its size and location.
2) What is Khasra?
Khasra is that particular piece of land of Shajra that has been labeled with a specific number.
3) What does fard e milkiyat mean?
Fard e milkiyat is a registry of rights/registry haqdaran-e-Zameen. It is supported by the government authorities to determine the legal owner of the land and to keep a register of real estate rights.
4) What does Tattima Registry mean?
Register Tattima means additional sales test of hasasra. Means an additional sales test of a particular piece of land.
5) What is Baye-Nama?
The Baye-Nama or Register sales test is the document that creates a title in real estate.
6) What are some laws on the real estate sector of Pakistan?
Some of the laws in the constitution of Pakistan that deal with real estate are the following:
1) Transfer of Property Act, 1882.
2) Land Revenue Act, 1967.
3) Stamp Act, 1899
4) Registration Act, 1908.
In addition, always consult an attorney for real estate law counseling.
7) Can we use the farmhouse as an office space?
It is illegal to use a farmhouse for commercial purposes. However, there is an exception for some companies such as IT services, which can be operated from residential areas.
8) Do we inherit law in Pakistan?
Yes, Pakistan has several inheritance laws that apply depending on religious affiliations. For example, Islamic personal laws are for Muslims and people belonging to other religions have a hereditary law according to their religious leaders.
9) Can I buy a property in Pakistan as a foreign Pakistani without a visit?
Yes, a foreign Pakistani can easily buy property in the country without visiting Pakistan.
10) Do I have to record the transfer of real estate every time?
Yes, every transfer of real estate must be registered and delivered. It can be done only with a registered sales document.
11) What are the necessary documents to legally own a property?
The only document you need is a document to control the delivery of property in your favor. This may include other documents such as a deed of sale, a letter of receipt and a certificate of sale.
12) What does proxy mean?
A prosecutor is a powerful form, assigned to an agent of the principal to perform an act and deed for and on behalf of the principal. A prosecutor may also receive from person A to person B to appear before the court, tribunal, and authority to complete any real property or transaction. When it is allowed to authorize certain transactions, it is called an attorney general and it must be registered.
13) Can a person with a prosecutor’s hand over property on their behalf?
No, the person who is appointed prosecutor on your behalf has a fiduciary duty to act in your interest and do what you would do yourself, if possible.
14) Can I revoke my power of attorney?
Yes, you can revoke your proxy at any time.
15) Is my prosecutor for life?
A prosecutor can be for life and in that case it will end after death.
16) In which case is a prosecutor suspended?
As mentioned in the previous question, it can be canceled at the death of executioners and it can be canceled by the executioners in his life.
17) Can a mortgaged property be sold?
No, real estate mortgaged property cannot be sold.
18) What is stamp duty?
Stamp duty is essentially a government tax on the transfer of property.
19) Who has to pay stamp duty?
The buyer must pay the stamp duty. However, in some cases, sellers also undertake to pay for it themselves.
20) Which authority holds the country record in Pakistan?
The Department of Revenue of the District Administration is responsible for maintaining land records. They also decide the boundaries of property and possession.
21) How can I sell a property as a co-owner?
You may sell the property as a shareholder, but you may sell only the scope of your share.
22) How can we differentiate a will from a gift?
A will is only after the death of the creator, while a gift can be made for a lifetime. An owner is entitled to give all his property to the lawful heir during his lifetime, but he cannot do the same by will. However, a homeowner may give a will to give a third of his property to someone who is not the legal heir. And if this favor is done for a lawful heir, it requires the consent of all other lawful heirs.
23) What are the essentials of a gift?
There are basically three essentials of a gift:
1) Offer from the donor
2) Acceptance of the person to whom the gift is received
3) Transfer of possession
The Motor City Karachi – Project Details, Location, Features and Prices
The Motor City is a Sheikhani Group-themed housing project on North Karachi Bypass. The project is approved by Malir Development Authority, and it is currently developing rapidly. A project map has already been unveiled, and reserves of residential and commercial plots are being opened with easy installments.
The Sheikhani group company boasts of delivering more than 30,000 units during its 30 years in the real estate sector. The group aims to set new trends in the real estate sector of Pakistan by launching innovative projects.
As the name suggests, the Motor City is planned for car enthusiasts. The whole theme and master plan of this housing plan is designed for the specific category of people who love motorsport and want to enjoy high living standards.
Motor City is ideally located on North Bypass right next to MDA Office. It is located in MDA Scheme 45, and lies about 2 minutes from Dream World Resort and Gulshan-e-Maymar Karachi.
Following is the local map of The Motor City:
Here are some local features of The Motor City:
- Adjacent to Office of Malir Development Authority
- Against Dream World Resort and Gulshan-e-Maymar
- 8 minutes drive from Super Highway
- 15 minutes by detour
- 25 minutes from Jinnah Karachi International Airport
As most new housing projects are being developed miles away from this area, it is, therefore, one of the best housing options in Karachi today.
It is planned to be a luxury housing project with high standards of development and luxurious lifestyles. Because it is a motor sport, the main attraction of the society is its mega sports complex and racing circuit surrounding an entire society.
There are many sports facilities planned by the developers that are specifically designed for motor sports lovers.
Aside from the theme, the main plan of the project is quite interesting. It mainly consists of 4 different elliptical blocks interconnected. Each block has its own commercial market and park in the center.
You can download a high quality pdf map of Motor City below:
The Motor City Map
Here are some salient features of the project:
- Gated Housing Scheme
- 24/7 Security and Surveillance
- Sports and Recreation Facilities
- Parks, Shopping Centers and Masjid
- Provision of all Basic Services
- Underground Electricity and Sewerage System
- Modern Urban Planning
You can download a project brochure below for more details:
Brochure on Motor City Karachi
The company offers different sizes of residential and commercial plots in terms of easy installments. Reservations are available in the first row, hurry up first, so hurry up if you don’t want to miss this opportunity.
Here are the backup details of the Motor City:
- 125 kv. Yd | 250 kv
- 3-year easy installments
- Fees since PKR 63,091
- 205 kv. Yd | 300 kv. Yd | 400 kv
- 3-year easy installments
- Fees since PKR 217,199
Reservations start from a 30% down payment, while the remaining amount is payable in 36 monthly installments of 12 quarterly installments.
Here are the pricing and payment plans for residential and commercial plots:
TRC decides to refine system for valuation of immovable properties
The Tax Reform Commission, led by state revenue minister Hammad Azhar, on Monday decided to refine the system for valuing real estate, speeding up a process of tracking and tracing in the tobacco sector.
This would also include recommended procedures for taxing small entities involved in the retail trade, reports Business Registrar.
The meeting discussed the topic of real estate appraisal and informed the participants that using appraisal tables was a tentative proposal and is not a long-term measure to appraise such real estate.
Moreover, from a review appraisal each time, a constant solution for appraisal of real estate was proposed during the meeting.
And the issue of a link between bank accounts and national tax numbers (NTN) for broadening the tax base was also discussed during the meeting.
Therefore, it was agreed to investigate the likelihood of effectively using the data of the National Database and Government Authority (Nadra) to bring potential people into the tax network.
The meeting also accepted the recommendation of the Implementation Committee on Tax Reforms (TRIC) to draft a simplified return form for small and medium-sized enterprises (SMEs).
According to officials of the Federal Revenue Board (FBR), the holding in the pursuit of a track record in the tobacco industry has contributed to a massive revenue loss of 40-50 billion a year.
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 here are some outstanding advantages and handy tips for investing in commercial real estate in Pakistan.
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.
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
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
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, 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, 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.
Govt jacks up property valuation rates by average 20%
On Friday, the government took the decision to raise property rates by around 20% for 21 major cities across Pakistan, focused on filling the gap that allows black money to the economy.
The second phase of aligning real estate appraisal rates in line with market rates has been due since July 2017 and the previous PML-N administration has twice delayed the growth, reports an English daily.
This step will allow the government to reap an additional Rs5 billion in tax revenue in the last five months (January-June) of the current financial year 2018-19.
The tax regulator announced on Friday the revised real estate estimates and more areas have been added to the existing cities aimed at broadening the coverage.
Federal Revenue Board (FBR) spokesman Dr. Hamid Ateeq Sarwar said taxes on average had risen by 20% and general property tax rates had risen between 15% and 25%.
According to Sarwar, due to the latest revision, real estate estimates have come closer to 60% of real market values.
He added that the final phase of the growth will start from July or September, which will bring real estate estimates to 80% of market estimates.
However, the tax regulator did not add more cities to the list and kept it unchanged at twenty-one and these rates take effect from 1 February.
The movement is directly focused on collecting federal taxes on the sale and purchase of real estate.
Low Cost Govt Housing Finance Scheme
Realizing The Dreams Of A Middle-Class Sector
The Government of Pakistan has recently launched cheap house financing to sacrifice aid to the petty bourgeois sector.
Although many banks face challenges to offer home lending with low interest rate, the government has taken measures to offer home loans with a mark-up rate of 5% (for 5 marla houses) and 7% (for 10 marla houses), for a set of benefits. to the banks.
The ruler. a cheap housing finance plan is structured so that people pay their rent for the house on a monthly basis. This system is based on basic bank loans that would have an interest rate 50 percent lower than those normally paid by banks to their customers.
Old or new projects and plot owners can get funding for the construction of their own houses. The funding must be supported for a period of no more than 25 years. The total amount of funding for cheap housing will be between 2.7 million and 5 million.
In addition, the interest rate subsidy is available from all banks and is divided into three groups:
Financing for house/apartments/apartments up to 5 marl or 125 sq. Ft. Available under group 1. Courtyards, fenced full area 850 sq. Ft. The feet and the maximum price under NAPHDA enterprises is Rs. 3.5 million.
Within this group, the maximum funding is Rs 2.7 million with a maximum tenure of up to 20 years.
Banks will charge KIBOR plus 250 basis points for the full marking rate. In the first five years, however, the GOP will have an additional payment to reduce the debtor’s debt to 5 percent and in the next five years 7 percent.
KIBOR is known as Karachi Interbank Offer Rate, which is a market benchmark for most retail lending banks and is established on a daily basis. These prices are listed regularly on the website of the State Bank of Pakistan.
Support for houses/flats/apartments up to 5 marl or 125 sq. Ft. Group 2 is also given. Most covered yards of 850 sq. Ft. Feet and Rs 3.5 million maximum prices.
Under this group, the maximum support is Rs 3 million, with a maximum tenure of up to 20 years. This degree assists individuals and households not eligible or eligible for NAPHDA projects to build or lease housing.
Banks can charge KIBOR plus 400 basis points with a maximum markup rate. For the first 10 years of Group 2, however, the subsidized rate for borrowers is the same as for Group 1.
The marking facility in Group 3 supports subsidized housing for poor families. Group 3 approves subsidized funds for the development or acquisition of more than 5 Marla (125 sq. Yards) and Up to 10 Marla (250 sq. Yards) houses/apartments/flats with a total protected area of 850 sq. Km. 1,100 square feet. . Feet and Rs 6 million maximum prices.
In this line of funding, the maximum funding is Rs. 5 million for tenure for up to 20 years.
Banks can charge KIBOR plus 400 basis points with a maximum markup rate. However, for the first five years and the next five years the GOP will have a brand subsidy to reduce the borrowed rate to 7 percent.
Loans are easily accessible in the world for the housing industry, although in Pakistan the procedure is very difficult which has contributed to the formation of a committee. The purpose of the plan is to provide people who could not afford their own house, with cheap housing. The rules on the building sector will also be simplified and the payment of loans encouraged.
Malir Development Authority- Here’s All You Need To Know About MDA
Looking at the complex managerial problems caused by the rapid expansion of the urban population in Malir Town, Karachi, the Sindh government established the Malir Development Authority (MDA) back in 1993. The authority was responsible for many roles and responsibilities to improve and arrange the local infrastructure.
So, today we will present a comprehensive overview of the Malir Development Authority (MDA).
Founded in 1993, MDAs have emerged with the core goal of developing the neglected residential areas and for restoration of the stalled development projects in Malir Town, Karachi. The authority was merged with the Karachi Municipal District Government (CDGK) in 2001. However, the CDGK was later dissolved leaving the MDA as an independent institution again.
Malir Town is spread to a large area having its one end in Gulshan Town while the other touches Gadap Town. Malir Development Authority is exploring new ways to initiate the provision of cheap housing in the area.
Has the Malir Development Authority (MDA) Introduced Some Housing Schemes?
As of now, the Malir Development Authority in Karachi has introduced 3 housing plans. The details listed below are:
- New Malir Housing Scheme-1
- Shah Latif City Scheme 25-A
- Taiser Town Scheme-45
The New Malir Housing Scheme-1 has extended to about 4000 acres in the northeastern part of the city. The project was launched with the aim of providing shelter to more than a million people belonging to low- and middle-income communities. The project is located in the center of Bin Qasim Industrial Zone on the main National Highway and is adjacent to Steelworks and a connecting road to M9 highway better known as Karachi-Hyderabad highway. One of the main highways of the country.
SHAH LATIF-URBAN SCHEME 25-A
Following the pattern of New Malir Housing Scheme-1, Shah Latif Urban Scheme 25-A has also been established to provide affordable housing units. This cheap MDA scheme has significant commercial value. Shah Latif Town is located about 20 minutes from Jinnah International Airport, Karachi. Shah Latif Town is also close to Landhi Industrial Zone.
TAISER URBAN SCHEME-45
Taiser Town is another most controversial project of the Malir Development Authority in Karachi. Taiser Town is also a low-cost housing plan with the goal of providing affordable housing options to low- and middle-income communities. The project covers a vast area of 20,000 acres.
Taiser Town is a very popular housing plan among real estate, especially in the recent past. One of the main reasons for its popularity and superiority over other MDA projects is that it was planned by an international company. Engineering Consultants International Limited (ECIL). The housing plan will offer all the basic amenities and facilities to its residents.
In addition, a 4-lane Highway the city’s main road link passes through Taiser Town. The road intersects with Jinnah Avenue and MM Alam Road near the junction of M9, Karachi-Hyderabad Highway. Therefore, we can say that Taiser Town is located in a well connected area.
What are the roles and responsibilities of the Malir Development Authority (MDA)?
The main roles and responsibilities of the Malir Development Authority (MDA) in Karachi are as follows:
- The authority is concerned not only with the development of the area, but also its role includes upgrading and prospering the existing infrastructure.
- All litigation issues on housing societies, projects and urban development in the area will be handled by MDA.
- MDA would be responsible for overseeing and approving the map of all housing developments in Malir Town.
- MDA is responsible for ensuring that the area is free of illegal interventions and they must carry out our anti-attack drives at regular intervals to counter this issue. Moreover, MDA will also monitor and counter the irregularities in the local real estate sector.
- MDA are parents of Sindh Government. Therefore, it is responsible for organizing election events and launching investment plans for all its affordable housing.
How to reach the Malir Development Authority (MDA)?
You can visit the Malir Development Authority headquarters between 9:00 AM to 17:00 PM The office is located in Gulshan-e-Iqbal Karachi. Bangalow No G-4 / B, Block 17
You can also contact MDA by phone at (021) 99244770
So this is our today’s comprehensive overview of the Malir Development Authority (MDA) in Karachi. We also addressed the main roles and responsibilities of MDA. We hope this information will help you better understand the purpose and purpose of this government owned real estate authority.
Action Against Real Estate Tax Escaper 
The people who have invested in real estate Federal Board of Revenue prepared their list over the last two years despite the fact that according to a news source they have not paid taxes against these real estate transactions, The 16000 people registered have financed income worth rupee in the real estate market. The 80,000 real estate transactions have been listed through the last two years according to the statistical analysis by Pakistan Revenue Automation Limited. According to PKR exchange rate, PKR 800 billion sum is the value of these transactions, although the real estate is much larger than these. The number of people among the 16000 has country tax numbers, while the rest are not part of the tax network to know.
Read: Exploding real estate sector contributes only 23 billion in taxes
The Pakistan Income Automation Limited has documented all property written financial records made for net assets costing more than 4 million PKR so it is important to note here that to document the real estate sector, therefore the government has declared it mandatory. that only taxpayers can buy property more expensive than PKR 5 million.