Whats ahead for the Pakistan Property Market

The government has maintained the restrictions imposed in Mini Budget 2018 for the Non-filers who can’t buy property worth more than 5 Million PKR. High-end luxury real estate is the real victim as it’s hard to find a filer buyer. Real estate transactions will remain subdued for the years to come. The level seen in 2016 will repeat only in 2019 or beyond. But small scale properties under price 5 Million PKR will have strong demand due to better affordability.

The property buying restriction for non-filers, government’s property buying back scheme, penalty to handle transactions of non-filers and restriction for overseas Pakistanis to send money within 60 days of property transaction has already crashed the real estate market in Pakistan. The government wants to convey a simple message that buyers and sellers have to show the source of income.

PROPERTY PRICE FORECAST:

Pakistan Real Estate Property Prices are already sliding due to low investments and high-interest rates. Prices are down by 35% from the peak of 2016. Real Estate Agents expect another 35% price fall from a peak of 2016 or 50% price fall from the current level as there are no buyers in the market and property transactions are a record low. This price forecast is realistic as Dubai property prices have already crashed by 75% since 2008 and another 5-10% price fall is expected in 2019. The abnormal property prices in Pakistan and Dubai were only due to the massive black money investments. Without the easy flow of black money, no one cash stop the crash. Property prices observed in 2016 will be seen again only in 2019 or beyond when buyers affordability will increase due to the rise of Pakistani Economy.