Why is real estate the best investment in Pakistan

1. Why is Real Estate the Best Investment in Pakistan? Unfortunately, the era of economic stability was very brief in Pakistan. At that time, in 1963, the Ayub Khan-led government gave a $25 million loan to Germany (West Germany) for a period of 2 decades. That loan is worth around 300+ million dollars in today’s time. 1 USD just worth 4.76 PKR throughout the 60s. But afterward, in the 1970s, corruption, political qualm, and poor economic superintendence, especially fiscally imprudent economic policies, has led to a substantial increase in the country’s public debt and slowing growth. The value of the rupee started falling immensely and inflation started spiraling up with every passing day. And today, it is the time when 1 USD is almost 176 PKR and the inflation rate is standing at an elevated rate of 9.2 percent. Whenever the rupee depreciates, it erodes purchasing power, increases interest rates, and strongly impacts the cost of living negatively. But most importantly, it reduces the value of savings and assets. For example, someone is keeping his/her savings in the form of cash. Typically, prices of the goods go up as time passes by. The cash which the person is stacking in the form of savings is not going to grow fast enough to completely counterpoise the inflation squander. Real estate is among the handful of assets in the world that keeps up with inflation. In fact, real estate is a hedge against the lessening value of currency and inflation, even hyperinflation. This makes real estate the premier investment option in the economic order of Pakistan. The monetary worth of the asset in the form of real estate never depreciates and perpetually goes up and up only. Not only does the value of plots and property rise, but the amount tenets pay as rent also increases with time. Investing in good prospects can offer both long-term and short-term returns. Take the example of the Blue World City Islamabad payment plan. This society is one of the top ranking real estate projects in the country. When it was in the launching phase, its payment plan featured very minimal down payments and easy installment plans. Due to the immense popularity and demand among investors, its payment plans were revised after a while. Currently, the housing society is still offering a very feasible payment plan but the prices of plots are significantly higher. Investors which put their money in the project at that time now own healthy returns because of this value rise. Keeping in view that the project is nowhere near its completion currently, it is evident that investors are going to get a very high yield of returns in the long term. This is just an example of one housing society from thousands of them. Like this when the neighboring society of this project, Rudn Enclave NOC will be approved, its prices are also expected to skyrocket.

2. Here are highlights of some of the other benefits real estate investment in Pakistan offers: ● In Pakistan, it is a common trend to renew lease agreements every year. It presents landlords with the opportunity to adjust the rent as per the inflation rate. ● Real estate investment offers expense reimbursements ● It builds equity which can offer very handsome profits. Equity in real estate is the amount you own or the amount you will get after you have paid off your mortgage after the sale. This is the ideal situation if the property is bought on a mortgage using a bank loan. ● Property value always appreciates and offers different types of monetary incentives to owners. If you are a beginner investor or not very aware of this market, consider getting consultations from a reputable real estate agency. Article Summary Real estate is a snug haven for investors. Deeming the economic condition of the country, no other option is better than investing in real estate to keep up with the rising inflation level.