An Overview of the Pakistan Real Estate Forecast 2018
A large portion of our country’s allowances and capital are no doubt invested in the vastly growing property sector. Though there is a great role played by the local investors in that scenario but the role of non-resident Pakistanis is also inevitable in this regard which will have an everlasting impact upon the Pakistan Real Estate Forecast 2018. That is why the government has decided to abolish and renew rates which were put forward by Federal Board of Revenue (FBR). Moreover, the advance tax has also been reduced to one per cent of the declared value at the federal level. Also, a request has also been put forward to the provinces in which it is stated that they should lessen the DC rates. The provinces have also been asked that they must exempt the non-filers from buying properties that exceed Rupees 4 million costs. That ban will no doubt bring an end to the most viable investment option for many people.
The Pakistan Real Estate Forecast 2018, comprising of two major parts can be analyzed and summed up as follows:
The first part Pakistan Real Estate Forecast 2018 consists of the major factors which have a continuous impact upon the Pakistan Real Estate Sector. These factors can be summarized as under.
Tax Reforms and their impact on Real estate
As mentioned in the first paragraph of this article, the new tax reforms may seem unfair in the first glance but these are totally filer friendly. The most important part of this tax framework is that only those people would be rewarded by these reforms that pay their taxes. It has been emphasized in these reforms that non-filers cannot buy any sort of property worth 50 LAC or more unless they become filers. We all know that not many tax payers are able to buy property worth 50 LAC, so the question arises that where would the people with black money go? In fact the black money holders would the only buyers of high profile real estate properties in our country. Whatever the case may be, these new tax reforms would become a real time headache for the black money holders and automatically block their undue investment opportunities in the real estate sector of Pakistan. It will also lead to the unveiling of the ultimate source of income in the following way.
The decision of tax reforms had a deep connection with the unfair means of income and their impact on the overall economy of Pakistan. These reforms have absolutely made it clear that no citizen will be able to keep assets attained by hidden or unfair means, in the country as well as abroad. It was witnessed in the Panama Papers case which highlighted many aspects and drawbacks of such massive properties and capital.
In short anyone who buys properties will have to answer and tell about his or her ultimate source of income. This reform will totally block the fatal injection of black money in our economy.
Property Scams & Strict Action by NAB
NAB has also become strict about the Property scams and frauds taking place in Pakistan since many decades. As exclaimed by the chairman NAB, most of these scams are directly related to the real estate investment sector. Moreover, there are a lot of frauds and illegal housing schemes looting people in Pakistan. Many economy class people have lost all their savings, thus facing lifetime disasters.
The second part of Pakistan Real Estate Forecast 2018 encircles the latest price trends in the Real Estate sector and can be summed up as follows:
Impact on Overall Prices
The first property boom in Pakistan real estate took place in the years 2003-2006. After some ten years the second one took place which lasted from 2012 to 2016. Both these booms resulted in the ultimate inflating of the property prices and unfortunately ended up in a crash. If we observe the current real estate scene, prices have once more come down up to 30% since 2016. As mentioned earlier, if non-filers are not allowed to buy property worth 50 LAC or over, it will further bring an overall massive real estate price fall across Pakistan.
However, the price fall may not be the same everywhere due to the reason as non-filers would now buy these properties which would be priced down and after a certain period all that will bring a boom in the real estate sector as it had brought in the past. Thus, we can easily assume and say that the Pakistan Real Estate Forecast 2018 is full of good news.
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