Real estate has remained the driving force of any economy ever since the evolution of mankind. In the basic needs of a human being to survive in this world, acquiring a place to build a roof for him is one of his utmost priorities. Keeping these things in mind we can conveniently establish the importance of real estate. According to a report that was published by World Bank, almost 70% of the nation’s wealth is invested into different real estate projects. Owing to the huge potential reserved in this market, we have predicted and forecasted the possible real estate trends in the going year.
Post Covid-19 Economy
Since we all have faced a greater slump in almost every industry last year amid Covid-19 pandemic, we know that the market was not performing well. Some new terms were also introduced like work from home, contactless purchases and many similar terms. However, in conventional marketplace the real estate business doesn’t move like this. Investors need to view, discuss, and analyze the property before putting their capital into it. That’s why of all the businesses real estate market had to suffer the most.
Now as the world has started coming out of this pandemic, and there is new normal established for the continuous business, our experts at ValueProperty also predict what the 2021 real estate will bring. After the second wave of Conid-19 Pakistan’s real estate market witnessed a great boom. As an example, one month back per Marla cost of land in Bahria Town Lahore was around 6-7 lac, but as soon as the government lifted the lockdown, a sudden hike was seen in the market an same plot was difficult to get in 10-11 lac per Marla. Further paragraphs will elaborate the complete breakdown of the factors involved in real estate trends and what the real estate market will bring in 2021.
Government Policies for Real Estate Market
After seeing the government policies for the fiscal year 20-21, it can be accessed that government is seriously taking measures in order to provide relaxation in the real estate market, and also they are trying to invite new investments by alluring the elite class. First thing first, the current government has not imposed any new or additional tax on property and also they have not increased the value of taxes. Since, we have observed that every government when takes the charge tries to derive a huge chunk as a bail-out from the real estate, but the incumbent government hasn’t done any such thing.
The next factor that seems to be much lucrative for the Pakistani market is the elimination of source of income. The incumbent premier of the state has promised that any individual who invests in real estate won’t be asked to provide the money trail. Which may not be much in favor of the nation but it will allure the millionaires to come and invest into real estate.
Third thing is the reduction of Capital Gain Period. In past if you held and sold the property after 5 years of purchase then you had to pay Capital Gain Tax. Now this term is reduced to 4 years, and now the investor won’t have to pay hefty taxes if the property is sold after 4 years.
Real Estate Trend Predictions by Area
Given the support and benefits from the government we can predict that the market will experience a great boom in the current year and coming years too. Another factor that adds to it is the China Pakistan Economic Corridor (CPEC). As CPEC will bring new infrastructure and road connectivity, Pakistan’s real estate market will witness a great boom too. CPEC roads are passing through major cities of Pakistan including Lahore, Islamabad, Rawalpindi, and Karachi, predictions of the real estate trends by area are listed below,
There are two prime projects in Rawalpindi, CPEC route and Rawalpindi Ring Road; these two will define the upcoming real estate prospects. The experts and researchers here at ValueProperty recommend investing in the vicinity of this area. There are many crowd funded projects currently operational in this area, and also few of the housing societies have started to be built in this area. In these projects for any investor who’s looking for a great gain on capital we recommend investing into Rudn Enclave, or Discovery Gardens. Since both these project will enjoy close proximity with RRR and CPEC, they seem to have a great potential
The positive prospects of real estate investment in Lahore are not as many as Rawalpindi, but the market is still doing fine there too. The main reasons of the lowkey market trends in Lahore are lack of information of the projects and fraudulent activities that happened with people in past.
Three projects that we recommend on our end for a greater ROI and profitmaking are Bahria Town, Valencia town, and Lahore Smart city. Since, all three of these projects enjoy close proximity with M2 and Lahore Ring Road, the real estate market trends seems to be shifting this side in 2021.
Karachi is the driver of Pakistan, and turns the wheels of Pakistan. All the major industrial activities within Pakistan are done in Karachi. Similarly, the prospects of real estate investment in the region are also high. As per our recommendation, Bahria town, Johar town, and Madras Cooperative Housing Society will take the lead in coming years.
The real estate market in Pakistan is doing great as we have discussed the Pakistan real estate trend predictions in the year 2021. You should invest your capital for greater returns as per our recommendations. However, if you feel like you should discuss your plans in detail, you can always contact us for better guidance in any real estate investment matter be it from any city in Pakistan. Our highly diligent team is working day and night to bring the most lucrative real estate projects to you especially from Rawalpindi and Lahore. You can also get information about the new housing projects in the region through our website.