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Brexit Impact on Lahore Real Estate Market?,

(103335)
   CMY
Saturday, June 25, 2016 01:32 AM 
Reply: >
Many concerned friend from UK Europe are keep asking me impact of Brexit on Lahore property market?


Yes billions of black money sitting in people houses in Pakistan or in overseas in Euro/Pounds will will go to work in Pakistani property market especially in Lahore as once again Karachi is getting dangerous to live.

You could also see major selling pressure in local UK and EU countries from expatriates Pakistanis and other nationals. Pakistani will prefer to invest that at home where especially Lahore where currently 300 billions are being spent on infrastructure improvement.

In Pakistan only two places to make money are left now. One is property investing and other is buying and holding foreign currency for gains expecting Pakistai rupee collapse due to massive loans taken by Govt. Rich people people bought foreign currency in large amounts especially after tax imposed on cash withdrawals from banks etc. They are keeping $ pounds Euros hidden. Now after clearly seeing that Euro/ Pounds and other EU currencies will be under selling pressure in future with each EU country walking away. Money will be cashed and put to work in property only. Gold too high not easy to trade ( Bagumaat wont let you do it :)


Choudry Mujahid Yasin ( CMY )
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Salman.A® replied on Saturday, June 25, 2016 01:59 AM 

What about Stock market?

After inclusion in EM , PSX is in limelight of foreign investor.

VERY high risk investment in stocks, not for everyone, one needs to be smart and know the fundamentals and technicals before investing any money in the stock market.

But third option for investment is STOCKS. I LOVE IT and maybe i am biased towards it.
LRE WhatsApp Group 101® replied on Saturday, June 25, 2016 02:23 AM 

Things that have already happened today:

- The pound has plummeted to a 30 year low
- Japanese stock market has crashed 8% and suspended trading
- Comfirmation of another Scottish independence referendum
- Calls for an Irish reunification referendum
- Far-right nationalists across Europe now calling for referendums and the demise of the EU
- Hundreds of UK pension funds underwater
- HSBC is worth £10bn less since yesterday
- S&P has announced that UK now likely to lose its AAA credit rating
- In two hours, the UK economy has lost over £255bn, the equivalent of 40 years' worth of EU contributions
- UK Prime Minister David Cameron has resigned
- The UK has down slipped down to the 6th largest economy

Adeel Zubari
User_6006® replied on Saturday, June 25, 2016 03:00 AM 

one fact is that lahore property already rising from many months and out of reach of common man now , no matter the 300 billion govt spending or whatever happening sharp increases in property over short time naturally invite slump . so be careful specially when someone suggest you that karachi becoming violent , people have black money in homes and will invest etc now as currencies of eu falling , if u look at property history in many good times even plots get posession but prices remain undervalue this what slump brings , and slump do not need factor it's property rule and key for property to move in phases else it wont work
Jameel Mughal® replied on Saturday, June 25, 2016 03:42 AM 

Thanks CMY for elaborating Brexit effect if any on Pak real estate.
One of my friend lived in UK for 30 years, now he in UAE all family is UK national They are having 5 Flats in UK, still he Bought 2 Kanal Plot in Pakistan and Told me still he thinks Pakistan is his home. He is deeply concerned about Brexit. He thinks none of his properties gained in UK for last 4 Years where as back home price have gone up 4 Fold. I am astonished I am in UAE for long but thought the Pakistani national in UK and US feel fully secured which is not the case.
User_15051® replied on Saturday, June 25, 2016 05:47 AM 

Next big thing for Pak expatriates in US is coming in the shape of Trump😎
Ahson replied on Saturday, June 25, 2016 06:37 AM 

I'm in USA since since last 13 years but still consider Lahore my dream town to live again after a few years. Nothing like homeland where we all spent our childhood and grew up and eventually went to different countries to earn a living. Secondly our country has cash economy and people buy on cash without any banks involved so no matter what happens in Europe or elsewhere, the real estate in Pakistan will never take a dip, it could slow down but never collapse.
User_12596® replied on Saturday, June 25, 2016 07:41 AM 

Yes you are right Ahson, i am living in KSA but life is better in Lahore as compare to here, We can earn money here but Life ka maza nahee hy, Lahore property is best, if you have 2 three properties in lahore u dont need to live abroad.
ShahzadQamar® replied on Saturday, June 25, 2016 10:14 AM 

CMY I agree with your statement but in general what happens in such cases on shorter run is that investors pull their money from all the investment locations markets real estate etc. to close the books and reinvest after some time that brings temporary slump in each sector and same might still happen in Lahore once Big Fish try to hide in Pond water for breathing.
SaeedUSA® replied on Saturday, June 25, 2016 04:44 PM 

Very good analysis by RaviaGIk but forgot one thing that Pakistan own political situation is not good. After Eid will be big show down.If you look at the interest rate chart for Pakistan since last 15 years and you will see crash of 2005 and 2016 are almost same. Back in 2005 same time interest rate was 6 % and started going up and realestate went down.I am thinking that interest rate will be going up very soon or may be next year..my two cents..
MIT® replied on Saturday, June 25, 2016 05:27 PM 

Nice input CMY, Jameel and Ravian. Thanks.
AhmetKildir® replied on Sunday, June 26, 2016 05:47 AM 

Brexit is going to prove a disaster for the investors in England. Already the currency is down 10%+ hence the property prices are down 10% just on hedge w/o considering the actual capital losses due to foreseen lack of demand.
International investors pulling out will now be looking at underpriced properties in Cyprus, Portugal, Dubai, Canada etc.
Pakistani and Indian investors (that make up 40% of the UK property market) will be looking at their respective countries (and Dubai) in addition to the international options mentioned above.
I see a big boom in Pakistan property in 2016 especially around Eid al Adha.
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