2015 turning out year for Pakistan real estate?
2015 turning out year for Pakistan real estate?
Genuine buying and selling is being seen in the property market of Lahore right now. The reduced real estate activity, which was caused by a lack of understanding of the recently increased property taxes, has pretty much resumed. The slump seen in the real estate market during July and August 2014 was primarily because of the 8% taxes implemented by the Government in the form of Gains Tax, CVT, and increased Stamp Duty and DC rate. These taxes discouraged short-term investors, who right now find it less appealing to pay 8% additional tax to get small gains.
On the other hand, long-term investors and home-buyers have no option but to invest in the property sector since investment in stocks and commodities is no longer a wise proposition. The idle short-term investors have affected activity in both DHA and Bahria Town Lahore, as well as in other housing societies located in the southern parts of Lahore. Because of stalled work on the southern loop of the Lahore Ring Road and uncertainty about its route, investors have been confused even further. As soon as the final plans for the Lahore Ring Road are released, investment in the neighbouring housing societies will increase.
In 2015, we might get some news about the launch of DHA Phase X, as the authority has once again started the acquisition of land for this phase. However, any investment here would be long-term as it might take about a decade to be developed.
DHA Lahore Phase IX, on the other hand, will see some major development in 2015 in the form of balloting, giving a major push to property rates there.
The development of Lahore Rind Road in 2015, or at least the availability of its proposed plan, will cause property rates to go up in housing societies such as Sui Gas Phase II, Bahria Town and NFC II. No major residential project in Lahore is waiting for launch in 2015, but the real estate activities in other cities of Punjab such as Sialkot, Jhelum and Gujranwala will pace up in the coming year. I also expect increased activity in Bahria Town Karachi.