There is a good chance that real estate will be one of the country’s most popular industries for investors. This is also true for investors from outside the country, as real estate is, without a doubt, the most common type of investment that Pakistanis living abroad choose to make in Pakistan. Indeed, a significant portion of Pakistan’s principal source of foreign cash, remittances, is used in the country’s real estate market through investments. Additionally, it is a significant contributor to Pakistan’s economy, directly or indirectly, helps dozens of linked industries, and is a potential source of substantial money for the government.
The rise of the real estate market, particularly since the beginning of 2010, has been remarkable, resulting in enormous rewards for its investors, as luxury real estate projects such as Dream Gardens Lahore or other big projects have emerged all across the country. Following this expanding boom, there have been calls for the regularisation of the real estate market, and the government has been taking steps to fulfill these demands. However, one factor that has hitherto been disregarded by those in charge of formulating public policy is the demand made by real estate community members that the industry status of the sector is recognized.
If one examines how the current state of the industry will affect the real estate market, one may have a clearer understanding of why the demand exists and why it should be considered.
Why is this the situation in the Market?
An examination of the state of the real estate market as it currently stands would be illuminating in and of itself. Since quite some time ago—or at least up until just before the elections—the market has been relatively inactive, and prices have either remained constant or fallen. In Karachi, there are also a variety of other considerations to consider. Investors generally have displayed a greater degree of caution up to this point. In this scenario, the serious real estate agents have been abandoned to fend for themselves and must navigate the difficult issue alone.
But those are just files, which are worthless unless a market exists. They are in a difficult situation because there is nothing they can do. If someone is residing in the US, he can find real estate apartments through Mcallen Craigslist. Also, with craigslist, tool people can find jobs.
He contended that if the real estate market were given the status of an industry, real estate agents could obtain loans with interest rates in the range of 3 percent to 4 percent. They would be in a position to begin construction on their projects, endure the slow times, and then, when the boom in the real estate market returns, their projects will already be completed, at which point they will be able to return the loans with ease as well. As things now stand, without the industry status, banks are not especially eager to give loans, and if they do, they do so at significantly higher interest rates.
Access and representation in commercial and industrial organizations. This will unquestionably assist in helping to handle a large number of difficulties that have been plaguing the real estate business more rapidly. Once improved documentation and industry standards are implemented, the approval process will become less difficult and more convenient for all parties involved.
Public confidence in the real estate market has increased.
The subsequent formation of companies will contribute to an improvement in the situation for all parties involved.
It will be possible for businesses to join a stock exchange and build vast portfolios, at which point they will be able to sell shares to raise capital. According to Johar, the only real estate companies that are now registered with the stock exchange are a total of four businesses. He anticipated that number would climb by a factor of more than eight.
Johar contributed to the discussion in favor of the industry status. They are the educated bunch, holding advanced degrees in management and marketing, making substantial contributions to this country and its real estate industry. In addition, people from every imaginable background have become emotionally tied to real estate. It is only just that the industry is granted a status that will assist it in growing further; this is merely for the contribution that it has made to the general population.
In addition, in Johar’s opinion, this will be unavoidable if Pakistan’s real estates agents compete with foreign real estate agents, which they can do. The government is considering levying a tax on real estate; therefore, it is only right that real estate also receives advantages from the government.
Do you believe the real estate market should be recognized as its industry? What are your thoughts on the subject at hand? You are welcome to engage in conversation with us in the comments area.