Pakistan is quite a part of the nearly global boom of the Real Estate market. The prices have been rising steadily for quite some time now. The property in prime locations of cities like Karachi, Lahore, and Islamabad is in high demand among both realtors and consumers. The prices of such properties are already reaching into the above million US dollars range. A simple one kanal house in a location like Model Town, Gulberg, or Defense can cost anywhere from $200,000 to $500,000. The prices have gone up so rapidly that they are nearly five times of what they used to be around a few years ago. Those who own the property are simply not selling it anymore and are waiting for the prices to go even higher. It remains to be seen whether this waiting and denying willing buyers is going to work out in the long run or if the market will simply fall apart.
Considering the state of the market many people are considering this the best time to invest in Pakistan Real Estate. There are many realtors and firms that are busy buying projects that are going to take years to complete. There are numerous housing societies that are being constructed on the outskirts of many major cities. Most of them are being targeted at the upper end of the market with prices in hundred-thousand ranges. Owners are not selling these properties and when the selling spree begins the prices are going to drop. This will be a rapid reversal of the current trend and bring an end to the Real Estate boom going on in Pakistan today. Another point is that in their eagerness to invest in Real Estate many people are resorting to home loans but a steady increase in the interest rate is causing a good proportion of them to default on their loan. This is again a bad sign for the market.
Buyers must be aware that the market cannot keep rising indefinitely. Eventually there has to be a reversal of the current trend. Among the crowd that is busy investing there are very few original buyers that have any long term plans for what they are doing. Most of the market is made up of small timers who are looking to buy property and quickly sell it when the prices go a bit higher. Society owners are purchasing files in bulk. This will help create an artificial file deficit and enable them to resell them at exorbitant prices. The market experts are already saying that the boom has gone longer than it should have. Already buyers are approaching realtors to help them sell their property. Another fear is that the big time realtors are going in for massive sales to cut their losses while there is time.
While quite a lot of the above is part rumor part speculation it does suggest that the prudent investor might want to consider selling out while the prices are at a peak rather than wait till the market actually begins to reverse its current trend.
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My husband and I own a business in Massachusetts. We have a part time home in the state of Vermont which we hope to retire to in fifteen years and a home in Mass. We travel back and forth three days in VT, four days in MA. Can we sell our home in MA and have our business buy a condo for us to live in while we work in MA?? In other words can our business own a condo AND would it be an advantage to have our business own our condo????
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