Real estate trends of 2020

The real estate sector of Pakistan is one of the most dynamic and thriving business segment. The reason for this is that any Pakistani who is ready to invest, virtually always selects real estate as an option. Although the investment in other sectors such as commodity and stock markets also happen, but the scale of these investments does not match with even a fraction of the money that gets park in the real estate sector. There are many reasons of this preference. However, the main reason is the security, leverage and rewards that come through the practice of buying and selling properties. The main advantage that most of the Pakistanis see in the real estate sector is the security of their investment and the returns that they get on that. Currently, the real estate market of Pakistan, at large, is expanding. According to the real estate experts and veteran real estate investors, the main reason a consistent and massive influx of new real estate investors in the market. 

The main reason for this growth and sustainability perhaps lies in the series of detailed reforms and relief package that has been introduced by the incumbent government for the real estate and construction sector. After the introduction of these reforms and relief, the new real estate investors – mainly the well-off millennials – are ready to test the property market. The relief package, that comes in the form of tax cuts and breaks, has made the transaction cost of properties less. According to the financial indicators published by the economic survey of Pakistan, the cost of transferring a property has reduced by 50% due to these tax breaks. In some cases, it has even gone down to 25% of what it used to be before. Therefore, the overall investment realm surrounding the real estate sector is conducive for investors to park their money in property. For instance, if you are going to buy a plot for sale in Capital Smart City Islamabad then you will pay no taxes or surcharges until you are ready to transfer it to someone else. Similar is the case with other new real estate projects in the market. 

The year 2020 has not been one of the greatest for the property market of Pakistan. Although the real estate sector of the country has witnessed a massive boost, but the year was marred with COVID-19 pandemic and business lock downs. The Lock Downs due to the pandemic have slowed things down a bit. However, the Pakistani real estate sector did not hit the stagnation point that it was experiencing during 2016 till 2018. The main reason for this has been the fact that, since the tax relief has been quite substantial, the real estate market kept going. The transactions at personal level kept happening and were materialized when the lockdown was lifted. From 2013 to 2018, the real estate was badly hit by the increase in overall governmental taxes and levied duties. According to the real estate agents of real estate markets across Pakistan, this half decade was when the real estate sector literally hit the deepest snag. However, the current government has made the real estate and construction sector a priority. Therefore, the reforms and tax breaks heavily lifted the market and made it ready for a boost that has been, so far, unprecedented in the country’s history. 

The real estate sector trends in Islamabad basically shape the mood for rest of the markets. The 2020 trend in Islamabad has been investing in the real estate housing projects aka private housing societies. Although Islamabad is also witnessing a sudden surge in the hi-rise commercial cum residential projects, but the foci of investors remained the commercial and residential plots in private housing schemes. For instance, the year proved to be quite good for the private housing schemes located in suburban Islamabad near or on the Lahore – Islamabad motorway. That area has become an investor magnet due to one of the best logistical infrastructures of the country. The area is not only host to the Islamabad – Lahore motorway, but also hosts some of the best upcoming mega projects such as the Rawalpindi Ring Road and the eastern corridor of the China Pakistan Economic route under the program One Belt – One road initiative. Apart from this, the new Islamabad international airport also lies in the same area. In the future, this area is all set to become a hub of economic and logistical activity in Islamabad and Rawalpindi. Therefore, a lot of investment is going in open land and housing schemes located in that stretch. For instance, the new real estate investors are particularly taking keen interest in the Blue World City Islamabad. The Blue World City location and payment plan is one of the most convenient in the real estate markets of the twin cities. Also, the Blue World City Islamabad NOC is under process and, as per the developers of the housing scheme, will be approved within the new few days. 

Another trend that has been witnessed in Islamabad for the year 2020 has been future homeowner interest in Zone IV of Islamabad. The Zone IV of Islamabad is located right at feet of the gigantic and surreal Margalla Hills. The Park view City Islamabad is one real estate project of interest that has managed to attract a lot of investment towards it. The reason for the investor interest in Park View city is the fact that other real estate projects such as Bani Gala, Bahria Enclave, Shaheen Town and CDA’s Park Enclave are out of budget for even the wealthiest of the future homeowners. The Park View City Islamabad is one of the few housing schemes in the area that is still in a position to sell plots on installments. Apart from this, the Park View City Islamabad is also CDA approved. Therefore, the credibility factor plays a major role. These are some of the trends of real estate in 2020. Hopefully, the pandemic will be over in 2021 and the real estate sector will bounce to new heights in terms of growth and volume.