Karachi Stock Exchange Index has increased by 42,000 points in just three days after the General Elections. Pakistani Rupees has also strengthened against the US Dollars by 9 rupees. So all of this suggests that positive signals to the market and that public faith in the country has restored.
But how would the Real Estate Market benefit from it?
Immediate affect on the market
The impact was deemed indispensable because the market had been very slow from the last one month at least as everyone was busy with the elections directly or indirectly. The demand has picked up substantially as the political uncertainty has gone down and now people believe that their investment is bound to grow under the new government.
Increase in Investment
Buyers from both within Pakistan and the Oversees Pakistanis seem more interested to invest in Real Estate market. Investors are optimistic that the previously wrong policies will be fixed. And the interests of the investors will be protected. However, fixing the system will require massive changes and thus take time. But nonetheless, initial efforts will be welcomed.
Impact of CPEC
The development carried out under China-Pakistan Economic Corridor (CPEC) will make investments especially in Gwadar red-hot. However, as this is a long project so keep in mind that the returns will be gained in the long-run. There is growing interest among people looking to bring their investments to Pakistan.
The Impact of Strengthening of Pakistani Rupees
The Real Estate Sector will not be negatively affected by the strengthening of Pakistani rupees. In fact we will see new buying trends where the demand will continue to last for projects yet in the developing phase, primarily those offered on a payment plan.
No immediate change is expected on the issue of tax nuisance. Addressing concerns regarding the confusion surrounding taxes on property will not happen soon. And reforms will take some time.