The impact of General Elections on Real Estate and expected new policies of the New Government

Finally now the elections are concluded. Imran Khan is going to be our next prime minister as PTI has emerged as the single largest party in Pakistan. As always there are pros and cons attached to the win with consequences positive and negative expected on the real estate sector.

It looks like that the elected government is keen to forming an alliance with all different independent candidates for sake of clear majority. After these general elections the better economic situation of country is expected from the new government. This new government will suffer from the economic crisis as these crises are the major hurdles for the new government that PML N has left. It happens in all tenure of governments that the foreign reserves left almost empty with huge debts hanging upon the nation. Same the last government has done they left a mountain of debt on Pakistan.

As the instability of the government factor is out of the way, things begin to normalize. PTI has a lot of expat support. People all over the globe are in favor of PTI. As Pakistan Tahreek e Insaf (PTI) is about to form the government there will be multiple negative & some positive impacts. Although there will be multiple negative impacts the positive will outweigh those negative impacts. Anyhow let’s discuss the negative & positive impacts.

1. The new government will definitely increase the tax bracket

2. it will become difficult in times to come for non-filers to procure properties

3. The new government is expected to increase taxes on non-filers as well with respect to real estate.

4. The DC rates as well as FBR rates are expected to reflect market rates in times to come.

5. The taxes will have to be decreased as is the case in the rest of the world. This announcement has been made in the last budget, its implementation in times to come for sure.

6. The Forex rates have gone down.

7. Dollar rates going down definitely inflation will go down with it

8. NOCs of various societies which have been issued through bribery or relationships with people in power will be questioned.

9. Any society which has not paid its fair share of taxes or has any discrepancies will be addressed by the new government.

The uncertainty with respect to elections has surpassed. There is positivity with respect to the new government. Pakistan has a huge trade deficit which needs to be addressed. As the Dollar rate will go down the PKR will continue to grow strong in addition to it the purchasing power of people will go up. As the NOCs of societies will be questioned and the societies will have to pay fair share of taxes the rates of some of the private societies will go down significantly. Expectedly this might be reflected in most of the private societies in Gwadar.

This will mean that investment from overseas Pakistanis will increase. This is bound to go up steeply. This is a major factor which will help the property market. Prices of real estate in Pakistan will increase over time. After the oath taking ceremony of the new Prime Minister I expect that real estate investment will go up to $ 2.5-3 billion in the first year. It has downgraded to $ 700-800 million dollars from $ 2 billion in 2015.

Real estate investment from overseas Pakistanis and foreign companies was 25% of the total remittances of $ 8 billion back in 2015. This would increase sharply from the current figures.

Overall the market is expected to improve in terms of investment as well as property going up. Just be careful whilst investing in private societies. The goal here is to procure a real estate investment and hold on to it for at least a year.

We will bring more news regarding real estate trends, where the market is standing? what is going to happen next? For more updates and news keep visiting our website or if you have any queries contact us at Apex Group “Converting Dreams into Reality”