Pakistan’s economy has been going through tumultuous times that have affected every field of life, and real estate market is no exception.
Rumor has it that there might be a fall in the real estate market that will bring down the price of properties across Pakistan. Fortunately, it’s just a rumor!
After the Coronavirus pandemic, the government of Pakistan has taken necessary steps in the form of policies to keep the market stable and avoid uncontrollable circumstances which can adversely effect the economy of the country.
Let’s have a look at some of the policies devised by the government of Pakistan to help the economy stabilize and keep the real estate market floating at an average pace.
Policies to help the real estate market
As investors in Pakistan have to pay various taxes, therefore there has been a significant change in the taxation policies to be implemented by the government. It has been split into multiple phases. The government has modified a plan of action in order to implement these changes in the market in different stages.
For the first phase, the government plans to get all the undocumented builders and contractors onboard and ensure they have registered and documented their businesses.
This is important for the trust of the investors. The market will stay stable or rise if there are more investors in the market.
The government has also announced considerable incentives to be given to the documented builders and contractors to attract the unregistered ones. All the registered businesses under SECP and FBR will get further benefits as well. They will become eligible to get federal contracts.
These policies are very economy friendly and will boost the market. They are also in favor of the investors as this will help the real estate market to escape a potential long drought by inches for another 4 or 5 years.
Stability in the price of the dollar
As the dollar has seen a market dip for quite a few months, affecting everything and making inflation rise in the country. With newer policies, the government will be able to stabilize the rupee in front of dollars to maximize its rate of return and bring in foreign investment into the country.
Currently, the market is at an all-time high, and people are expecting a dip because of the diminishing purchasing power of the general public. Still, the real estate market strategists are hopeful that the market will stand firm and will not go into a dip as predicted because of these government policies.
Final thoughts
The real estate market in Pakistan provides endless opportunities to contractors and builders, along with stakeholders and real estate agents. Everyone connected to the business benefits when the market is at a boom. Therefore, these policies will not let the market witness a dip as the government is also attached to the market and earns healthy revenues from the chain of these businesses.