Lahore Real Estate Forum

Start NEW Topic Or Post Advertisment

                                                          
 
Back to Forum |

Lahore Rea lEstate ,

(113380)
   Ahmed
Tuesday, April 10, 2018 01:32 PM 
Reply: >
Can anyone please throw some light on the current deterioring Property market situation.Files and plot prices going down.Is it because of political turmoil?Karachi factor?tax factor?Any idea when will there be a slight upward movement??Kind Regards
Saleem replied on Tuesday, April 10, 2018 01:50 PM 

I think all 3 factors are playimg vital role which you have indicated. As far as upward trend is concerned it will take about 1 to 1.5 years most probably
Habib replied on Tuesday, April 10, 2018 02:53 PM 

There is quite uncertain situation in Property Market, After Slow down of 2015 we could assume that recovery Should start in one year Time and early signs should have show now, But Unfortunate Political situation new Taxation issues has postponed the recovery. To my Knowledge Most of plots were being transferred as non Filer status, But Now sale of big plots will be stand still, the issue is not how much Tax payable? Rather it can be less than previous estimates. The Issue is to become FILER , which means declare all your assets. No matter plots or cash. Evaluate them every year and file a return. If You sell Correctly show the profit. And if you buy tell the justified source of income.
This is Not New in Our neighbor India implemented it about 7,8 years back. Most of properties are transferred 50% Black and 50% white Money. Even then their real-estate market is worst performer in last 4 years.
I am not Proponent or Opponent of Tax Culture but in Nut shell real-estate market will have to face worst time in Coming years. The population and real demand alone cant absorb the supply especially big plots.
I don't see any change in policy of IK, Zardari, Army or PMLN. All want to broaden the Tax net to increase documented economy and hence show more GDP which is shamelessly low in Pakistan.
There are many economists in forum I would welcome brainstorming to suggest any model where both issues can be handled with minimal damage to property sector.
Tahir replied on Tuesday, April 10, 2018 07:08 PM 

Habib has said enough clearely. Thanks.
Tahir Lutfi replied on Wednesday, April 11, 2018 04:46 AM 

The Govt. introduced Tax Amnesty Scheme to accommodate their friends caught red handed in Panama issues, this may be a possibility, however, it is a difficult question that a relieving Govt. is much worried about the collection of taxes. The already imposed taxes in back 2016 gave a tough time to the property market and reduced the collection of Taxes and brought it to almost one forth level.

The presently introduced Taxation tariff and the way of its implementation will bring it to almost Zero (0) level.
Habib replied on Wednesday, April 11, 2018 06:27 AM 

If we see current market in prism, it is not crashing in spite of less interest in investors. This necessarily precludes next swing in prices. The reason being during a slump market becomes undervalued which attracts the attention of investors and a rally starts which gives a swing to the market almost always doubling or tripling the prices and then market consolidates the gains with some correction. This is happening for last 30 years. However at this time we are going for unknown destination or possibly prolonged stagnation. Especially in prism Kanal sector. Earliest signs of gains will be seen in smaller plots and phase 7 where Construction is at boom.
This is a lesson for investors of property that how important are market dynamics, For Last 15 years DHA have crossed 1 Cror Mark for Kanal Plot, But still near this price you can find decent locations in populated DHA ie Phase 7.
We are missing Prism Lovers comments especially Mr Ahmet and Others or their stance was entirely rejected by the market.
Jabbar j replied on Wednesday, April 11, 2018 08:16 AM 

Nice analysis Habib sb. What are your views and prospects of DhaI Hage own in this sluggish market? There is lot of construction going on and prices have shown upward trend. Would the gains three sustain, stagnate or reverse?
Habib replied on Wednesday, April 11, 2018 09:15 AM 

??DhaI Hage own Looks Misspelled

If You are talking of DHA Town 5 Merla The Price is rising and will saturate soon
Jabbar j replied on Wednesday, April 11, 2018 09:40 AM 

Thanks for your comments. Yes I was talking about Dha Town but misspelled it.

Any thoughts on the level and time frame for the prices to saturate? Would it reach 5 marla prices of Phase 6 if construction activity keeps on increasing.
ShahidŽ replied on Wednesday, April 11, 2018 01:09 PM 

If these recommendations are passed in assembly, this will have huge impact. I think property prices will generally reduce due to 40 lac limit for non-filers especially for bigger plots. Most of the investors will find smaller plots avenues. Only genuine buyers will be there in market for bigger plots. This is good news for genuine buyers who are looking to buy plots for their homes.
Habib replied on Thursday, April 12, 2018 05:19 AM 

Shahid, I totally agree with you but mu experience is Middle and Low Income will still find difficult to find Property as their needs and limitations can only be served, The Proper planned Lahore in Sub urban Life style and mainly is there market for elites and investors.
For Last Many years I have been Convincing my poor/Middle relatives to relocate in properly planned areas, But their Questions Can never be answered, Why we live in that far off area, why we have to leave specific open space in by laws, why we cant extend shade in street to make 2nd and 3rd Story. Down town there are narrow streets no by Laws and upto 20 people are living in 5 merla 3 storied house with in few KM of their working areas.
They simply say we cant sacrifice so many facilities just for Keeping Car,
I mean to say you initiate any low cost scheme for poor people the People who will get benefit are only investors, In past Govt imposed so many restrictions for transfers like bewa Kota Sahafi Quota But All proved useless,
Take example to DHA shouhda town Army purely gave it for the Widows of Low ranked soldiers who died during service, Most of them sold in 9 to 11 Lac saying it is Bedian Road... it is Border... it is far off area, Now A plot in 60 Lac Soon will be 75+ .And when Houses are made out of 7000 Houses you may find one Bewa benefitted by that whole project.
>