I thought of learning about different aspects of Pakistan,
as I want to do something for it. Therefore, I started with some of the
well-known indices or reports that would help me in gaining more information
about Strength, Weakness, Opportunity, Threat (SWOT). These were 12 posts. You
can search my posts related to Pakistan by typing: #UsmanZafarParacha_Pakistan
Now, I have been learning about real estate business in
Pakistan. I have started from Youtube videos and hopefully during my learning
Journey, I will get some more useful resources to move ahead in this learning
and perhaps entering into the real estate business.
I have seen a video, titled, “Real Estate Market Updates |
Why Property is De value, Fact & Cycle of the Property, Details” on the
channel “PROPERTY NAAMA”
The host of the video tells that the real estate values, in
Pakistan, have already gone down, but these were at high levels during 2019/2020.
This is a cycle of real estate, i.e., values go down and then up, and this
cycle goes on. Try to hold on the property at this time, and sale it when the
rate would go up. When you keep on showing that your property is on sale, its
rate would go substantially downward.
The host tells an interesting point that we usually make a
mistake of purchasing property, when its value goes up, and selling it, when
its value goes down. For instance, during the years in 2018 to 2020, and in
2012 and 2013, when the prices were very high, every person wanted to buy property.
This is the time to purchase property, and if you sale your property, you will experience
loss. Interestingly, at this time, property in Dubai is at “boom” (peak values).
This cycle of property going up and down is natural, and it is not linked to
whether prime minister is this or that, nor whether there is an army
dictatorship or there is democracy. However, during the era of General Pervez
Musharraf, Pakistan experienced a huge “boom” in the context of property. In
the era, when in Sindh, Bahria Karachi came during the era of Zardari sb, there
was a huge “boom” in property. In the era, when Bahria Rawalpindi came during
the era of Nawaz Sharif sb, there was a huge “boom” in property. In the era,
when Capital Smart City, and other similar projects came during the era of Imran
Khan sb, there was a huge “boom” in property. This is showing that real estate
is moving in cycles.
The host has another interesting point. “Roti, Kaprra, aur
Makaan” (food, clothing, and housing) are basic needs of human beings, and they
are moving in cycles. Their do not usually face downfall.
Giving the example of, probably, Dubai Gas, which is a huge
real estate company. During the Russian Ukraine war, money flowed to Dubai, and
Dubai “boomed”. In this Dubai, flats were available at 2 lacs and 3 lacs, and
now those similar flats are available at around 8 lacs, and this same price
will go down after 1 or 1.5 years. Real estate would shift towards Saudia,
where “Neom”, a 500 billion dollar project is coming, and about 2 trillion
dollars they are spending on real estate.
Another interesting point has been generated by the host. He
says, everyone is investing in Real Estate. If people place cash in Banks, they
have to pay taxes. If they place money with them, they are fearful of being theft.
If you want to establish Industry, you have to take approval from various
places. Suppose you want to open an industry of one arab (about 100 crores),
you have to pay about 25 crores in “rishwat” (bribe) and have to fulfill the
(wrong) wishes of every relevant department. This is why people spend one arab
and purchase some property, such as 4 plots, in Bahria Town etc. and wait for a
good time, and at that time, they sale the property and profit. So, this a very
easy process to invest in real estate.
Follow my Hashtag #behtareenkitalaash on Youtube: https://www.youtube.com/hashtag/behtareenkitalaash
Sources:
PROPERTY NAAMA - https://www.youtube.com/watch?v=_LFSdFFALF8
