2014 was one more promising year for the Real Estate Sector in almost all the major Cities of Pakistan, as market had bullish trend for almost last three years, and it continued in 2014. Though there are new taxes imposed in budget this year (2014-15) in the form of Advance tax, which is 1% for tax payers and 2% for nontax payers at the time of transaction on the properties valued 3-Million or above. (Official declared value) collector value.
Here are some of the trends that the Pakistani Real Estate Market witnessed in 2014:
- Foreign investment in real estate increased by 10 to 25%. (Overseas Pakistanis)
- Construction costs increased by 15%, followed the inflation ratio in the country.
- Prices of built-up commercial and residential properties increased by 10 to 20%.
- Prices of vacant plots that showed a bullish trend and increased almost 10 to 40 % and still on high demand.
- Commercial open plots cover the gap, which was created in last year’s move and increased specifically 10 to 25 % in this year.
- Rental rates of residential and commercial property increased by 5 to 15%, and will remain stable.
- The establishment of gated communities increased by five to 15%, and many more are in the pipeline. And demand in this type of scheme is increasing day by day.
- Because of high prices in already developed areas, properties become out of reach for a common man, because of this, trend of housing scheme in outskirts is increasing and prices came up in those schemes.
- Interest rates on home loans remained the same as last year and range between 14.3 and 14.8%
This article is written by Mr. Muhammad Shafi Jakvani, CEO – Citi Associates. You can get in touch with him at email@example.com. This article was also published in DAWN Real Estate Advertiser.