WHY MORE PEOPLE ARE INVESTING IN PAKISTANI REAL ESTATE THAN EVER BEFORE

1. WHY MORE PEOPLE ARE INVESTING IN PAKISTANI REAL ESTATE THAN EVER BEFORE? The real estate sector in Pakistan is never cold. There are several reasons people are always investing in this sector including increasing population, rural-urban migration, residents of suburban areas to cities for jobs, and an investment perspective. From 2015, this sector started declining due to multiple factors. The political situation in the country was ambiguous, conditions imposed by the international monetary institution (IMF) were very strict, and government policies were not very supportive, and there was no concept of foreign direct investment (FDI) in the Pakistani real estate sector. The trends of decline continued until 2019 but now, this industry is on the way towards a boom. There are hundreds of housing societies such as Capital Smart City Islamabad offering world class facilities to the residents and investors. Overseas Pakistanis and even foreigners are putting a lot of money into this sector. The World Bank released figures stating that Pakistan’s real estate economy contributes 60 to70% of the country’s wealth, directly and indirectly. The volume of this contribution is around the equivalent of $ 700 Billion. But as this is a figure from a year ago, the current volume is quite more. While some informal sources suggest more than $ 1200 billion if contemporary real estate businesses are also added. But on ground reality, this volume is multiple folds more. 56% of the Pakistani economy is undocumented, so it is almost impossible to know how much more this sector is contributing to the Pakistani economy. But after agriculture, real estate and contemporary sectors i.e., steel, cement manufacturing et cetera add the most in the economy. The current government of Pakistan is showing a very soft side for this sector. From the amnesty scheme to text deductions, it is compensating and encouraging in every way possible. With that, the One Belt One Road (OBOR) and China Pakistan Economic Corridor (CPEC) framework opened windows of opportunities. Many new housing societies are opening beside this route. Everyone's interest in real estate investment has a lot of factors behind that. Here are some of the factors working. CPEC and OBOR One Belt One Road (OBOR) is a Chinese trillion-dollar project. This project has so many dimensions and contemporary projects from which CPEC is associated with Pakistan. It is a long route, covering Gwadar seaport, highways, railways, and pipelines in Pakistan. As soon as this project started development, besides the construction sectors, transportation and logistics

2. sectors, energy and power generation sectors, and agriculture sector, the real estate industry started witnessing fundamental changes. Several mega housing projects such as Defence Housing Authority Quetta, Blue World City Rawalpindi, and Rudn Enclave Rawalpindi are directly going to benefit from this project because of their close proximity and has already become the prime investment destination even though the CPEC route is nowhere near its completion. The areas at the sides of the route are expected to be the new commercial hubs so properties are going to be very expensive in these areas in just a while. These increasing prices are the primary motive for the investors. Investing today, investors can get profits in both the long term and short term. Covid-19 pandemic Either first world countries or developing countries like Pakistan, the unprecedented Covid-19 pandemic affected every business. Investments declined even in the giant MNEs. The world is still fighting with this virus but industries are gradually starting to stand back on their feet. When the virus was on peak, there was a sharp decline in people’s purchasing power. In Pakistan, real estate demand has significantly decreased. Less demand led to a decrease in the prices of real estate. From the past few months, as markets are getting stable, relatively low prices are attracting more investors. Imran Khan’s real estate amnesty scheme It was a common perception that this scheme is launched to benefit the rich of the country but the output made it clear that every segment is benefitting from it. There was a huge influx of investments in the real estate sector after it came into practice and the construction sector is still benefiting a lot. This program lifted several fees and taxes in the real estate sector and also allowed people to invest their black money in the construction sector without disclosing the source of their income. The tax on investment gains has been abolished for all citizens who would like to sell their home, while previously the Pakistani government charged a 5% to 20% capital gains tax on the sale of constructed assets and plots of land. This limited-time license package has opened up over a dozen real estate investment opportunities for investors in Pakistan. New projects with low prices Lodging needs are always increasing in Pakistan. To accommodate people and fulfill their residential and commercial needs, more and more housing societies are being launched in the market. There are some very dandy projects recently launched including Nova City housing society Islamabad and Rudn Enclave Rawalpindi. These projects are currently in their launching phases offering residential and commercial properties at introductory prices. Generally, everyone is offering very easy installment plans after 10% down payments. Payment plans are

3. designed in a way that even not very financially strong segments of the population can also afford to invest in these projects. Nova City NOC and Rudn Enclave Rawalpindi NOC are under processing and the process is expected to be completed very soon. Once it is granted, prices will rise. Investing now in these emerging projects, one can earn good profits in both the long term as well as short term. Gold price The general masses of Pakistan invest in two main categories, gold, and real estate. Gold prices are sky-high for the past couple of months. Even Tola of Gold itself is almost 1.5 years, which makes the investment in real estate more realistic. As investments in the sector continue to rise, prices will rise as well, so by investing now you can really benefit quickly in the times to come. Inflation and currency devaluation The Pakistani rupee is losing its worth with every passing day. What people were able to buy with 10,000 rupees two decades ago, today, they aren’t able to buy it with even half a million. If savings are in the form of currency, it loses their worth with time. If it is in the form of some material asset, i.e. a car, its value depreciates. There are only very few assets in the world, whose value increases with time. Real estate is one of them. Its value always goes up. Currency devaluation and trends of hyperinflation are some of the factors, more people are putting their savings more and more into real estate. Some best real estate investment/ housing societies in Pakistan Capital Smart City Islamabad This project is the first-ever smart city in Pakistan so it is bringing a lot of new things for investors and residents. This project is fully legal and has acquired its NOC from Rawalpindi Development Authority (RDA). Rudn Enclave Rawalpindi Rudn Enclave is located on Adiala Road Rawalpindi. It is also a few minutes drives away from Islamabad-Lahore Motorway M2, New Islamabad International Airport, proposed Rawalpindi Ring Road, National Highway N-5. One can easily access Rawalpindi and Islamabad's main locations from here. Rudn Enclave Rawalpindi NOC approval is under process and expected soon. Park View City Lahore Park View Lahore is located at 3-KM Thokar Niaz Baig, Multan Rd, Lahore, 54000. Park View Multan Road Lahore is the project of the Vision Group. This project has already acquired its NOC from Lahore Development Authority (LDA).

4. Nova City Islamabad Nova City Islamabad lies right beside the proposed Rawalpindi Ring Road and the eastern side of the CPEC route. With that, it is a mere minute's drive away from New Islamabad International Airport. Its NOC is under-process but it has obtained Planning Permission from Fateh Jang TMA, and utility suppliers i.e. WASA and WAPDA. Final Words The Pakistani real estate market offers the best and low risk investment opportunities to everyone. This market is on the rise, making more people invest in it than ever before. If you want to know more about promising housing projects of the country, or have any queries regarding the housing projects mentioned prior, feel free to reach out for Deal and Deals consultations. We are real estate specialists offering free consultations for everyone.