Pakistan Real Estate – Pakistani Realtors Are Optimistic About the Future
|High Rise Apartments in Karachi Pakistan,
Image by Edge of Space
The financial crisis of 2008 has affected badly the real estate sectors worldwide. Everybody knows how the spectacular Dubai real estate sector collapsed when global crunch hit Dubai. Despite the fact that Pakistan is a developing country, the financial crisis could not affect it as drastically as it affected other developing nations. Experts believe that one of the reasons behind it is that Pakistan’s economy relies less on its real estate sector. The performance of Pakistan’s real estate has remained unstable after 2008. Some experts believe that is because the prices of properties have been stagnant for the last six years while others think that the sector is under stress.
Realtors are still pessimist about the future!
Decrease in interest rate
Currently, the prices of properties in Pakistan are quite high which is merely due to high inflation in the country. Because of the floods of previous three years, prices of commodities have increased drastically, affecting badly the purchasing power of people in the country. The low purchasing power is the main hurdle for people to secure or even apply for a decent mortgage deal. The Government, in collaboration with the State Bank of Pakistan, is not only trying to curb inflation but also decrease the interest rate on home loans.
The State Bank of Pakistan slashed down the interest rate from 14% to 13.50% during 2011. This shows that the government is seriously interested to increase the purchasing power of people to help them secure a better mortgage deal for themselves. Further decrease in interest rate is expected during the following years, which would increase the demand of properties in the country. Diminishing the disparity between demand and supply would bring prices down and set Pakistan’s real estate sector back on track.
William King is the director of Pakistan real estate and mainly deals in Karachi, Islamabad and Lahore real estate. Being an entrepreneur and passionate blogger he likes to share his knowledge and expertise with the industry people by writing for various related blogs.