How big of an industry is real estate?by Deal and Deals Leading Real Estate Marketing Agency
Real estate is the fastest growing industry all across the globe. Being the safest investment option, it is always the go-to investment option for people. Except for the 2007–08 Housing Market Bubble Burst, there is hardly any example in history when generally investment of this nature didn’t pay back people.
Global real estate market
During the peak Covid-19 era when every market of the world was affected, this market was among a few which was actually booming notwithstanding any circumstances. Reports show that the size of the professionally managed global real estate investment market increased from $9.6 trillion in 2019 to $10.5 trillion in 2020. Currently, the volume stands at total revenues of $4,243.6 Billion with 1.3% to 2% market growth. And that’s only what is officially documented. On the ground, it is a lot more.
Pakistani real estate market
For more than a decade, the real estate industry has been taking the Pakistani market by storm. Stats by the Pakistan Bureau of Statistics show that it accounts directly for 2% of Pakistan’s GDP. Documented part of this segment is somewhere between $300 to $400 billion.
As a real estate agency, we know every segment of our society looks forward to investing in property in some capacity, and honestly, this is the core reason this sector is so successful. New societies like Capital Smart City, Nova City Islamabad receive an overwhelming response from both local and overseas investors.
Is Pakistani real estate a favorable market?
Pakistan is always battling against financial strains, economical troubles, and political uncertainty. With that, there is the absence of incentives for investors, high taxes on the transfer of property, and a ban on non-filers to purchase property with a net worth more than 5 Million. But despite any precedented or unprecedented circumstances, this market exhibits stable trends.
In April 2020, Prime Minister of Pakistan Imran Khan unveiled an amnesty scheme for the construction sector. This scheme amended section 111 of the Income Tax Ordinance to allow people to invest their black money in the construction sector. With that tax rate is now fixed for the construction sector and constructors are charged tax per square foot or square yard. Purchases of goods and services for construction purposes from withholding taxes that were previously charged under section 153 of the Income Tax Ordinance are also exempted now. And last but not the least, 30 Billion PKR were allocated to give subsidies for the Naya Pakistan Housing Scheme.
The Premier's amnesty scheme elevated the status of the industry more. Now even a brighter future is ahead. 2021 is among the brightest investment years. Societies like Capital Smart City Islamabad, Nova City have come a long way ever since the amnesty scheme was announced. Besides the scheme, these projects are offering solutions for all real estate needs.
The Amnesty scheme has triggered very healthy competition among the housing societies. Now there are more investors, so everyone is trying to offer the best to the investors. As a result, we are seeing infrastructure and amenities in the market like never seen before. It is stepping up the lifestyle of the residents there but also adding a good stream of revenue in the country.
Another feature changing the dimensions and common patterns of the industry is China Pakistan Economic Corridor (CPEC). The economic corridor brought some transformational changes. Firstly, this project will bring a good revenue stream to the country. More revenue means more purchasing power for the people. Better purchasing power comes with more property renting and purchasing needs. Housing projects which lie near the CPEC routes are a major hit among people such as Rudn Enclave Rawalpindi.
Real estate investment in 2021
Real estate is already on boom but many factors and market experts are indicating that in the near future that this market is gonna strengthen even more. The amount you will invest today can be 3-4x in merely half a decade, so if you are still thinking about whether you should invest or not, go for it; there won’t be a better time.
Besides the very obvious reasons stated prior, how the gold market is doing also impacts real estate. There are two major investment options that are actually stable and offer returns. Either it is gold or real estate. Ever since the Covid 19 mess began, the gold market has been showing very intense fluctuations. Gold prices dropped in the international market after touching $2000 per ounce. Not Pakistan, investment in gold isn't a very safe option on a global level. That’s another reason the real estate sector is receiving a huge volume of investments in Pakistan. For the price of just 2-3 tola gold, you can pay a down payment of 5 marla, 7 marla plots in very prominent societies of Pakistan including Capital Smart City Islamabad, Nova City, Park View City Islamabad, Blue World City Islamabad, Rudn Enclave Rawalpindi et cetera.
Depending upon volume, real estate is the largest market in the country. Investments here always payback. And after the amnesty scheme by Prime Minister Imran Khan and the CPEC project, his market is at its peak and still progressing forward. Prices are continuously rising and investors are earning good profits. If you want to purchase real estate, now is the right time.
Buying property once is a lifetime investment for some people. Being a recognized real estate agency, Deal and Deals understand how important it is for you. We offer multiple services associated with real estate i.e. real estate marketing, deals, and free consultations.
If you want to purchase property or want to know about prominent housing societies, feel free to reach out. You can talk to our expert consultants anytime just by calling our UAN, or by visiting our office. Other than providing you with detailed information, they will also guide you about the options that are best for you according to your investment needs and budget.
Created on Oct 26th 2021 06:53. Viewed 177 times.