Showing posts with label Saudi Arabia. Show all posts
Showing posts with label Saudi Arabia. Show all posts

Saturday, September 21, 2024

Post 15/30: Real estate business move in cycles of ups and downs

(Source: Pixabay)

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