Real Estate is a promising sector of the economy of Pakistan. It has been developing rapidly in both the residential and commercial sectors. But in the year 2018 investors in the real estate business have seen a consistent decline in the property market due to political instability, new property laws, and financial emergency.
Recently there has been a decline in the property demand because fewer and fewer people are willing to invest in the sector. One of the major reasons for this decline is because of the steady increase in the property valuation by the Federal Board of Revenue (FBR). The FBR is reported to have increased the property valuation in the 2019 budget to bring the values of immovable properties up to par with the market value. It is reported that the FBR has been working on a strategy to increase rates of FBR valuation tables and to reduce the tax rates.
Another major reason for the decline in investment has been due to property scams. The rate of property scams taking over the market has increased over the years causing people to be more fearful in investing.
The previous government had also imposed a ban on non-filers, preventing them from buying new vehicles and properties valued at more than Rs.4 million but the new government has lifted this ban.
With the upliftment on the ban on non-filers from buying property the Real Estate sector is anticipated to see a rise in investments within 2019, particularly as there are several new development projects underway throughout the country that will affect real estate standards upon their completion