Lahore Real Estate Market:
Pakistan’s real estate market is developing with every passing day. The emergence of new real estate groups is changing the investment trend from long to short term.
Though many cautious investors park their money in the construction of housing units or simply purchase completely built units to rent them out for income generation, still a majority prefers to invest in land for a better or sometimes quick return, experts say.
The charm of better and instant return has increased the flow of liquidity in the property market and most of the people are not hesitant to invest their savings. In the past few years, the unstable law and order situation and a high cost of doing business had forced many to sell their business and put money in the real estate market.
The diminishing agriculture income is another reason for many small and medium-sized landlords to sell rural land and go for pumping money into urban property.
Though there are some rules and regulations and state authorities to deal with matters pertaining to the sale and purchase of land, they are not helping to build investor confidence. Apart from some private housing schemes, fraud and land-grabbing is the norm and state laws fail to offer any relief and solution to the problem.
As a result, experts say, money keeps on circulating among few particular housing schemes, which are marketed as a safe haven for investment with better infrastructure and other facilities. Nevertheless, the developers of these private housing schemes often fail to hand over possession to the buyers on the announced date.
In many cases, the capital of investors remains blocked for a number of years with no hope of some government agency coming forward to help them.
According to experts, such delays are also noticed in developed economies, but they do not continue for years and their governments make amendments to the laws to protect investor interests. The example of Dubai can be easily given in this regard.
Real estate developers point out that the property market of Pakistan has been virtually stagnant since 2014, with the exception of some private housing societies that have done a wonderful business because of excessive interest of small and medium-sized investors, who have, of late, make real estate their bread and butter.