KARACHI:
Changes in government regimes, introduction and implementation of new policies and manifestoes deter investment. Therefore, understanding government regulations and detecting new laws are critical to making safe and lucrative investments because it influences property pricing and prospects. Amnesty programmes, tax cuts, and subsidies enhance demand, but tax increases decrease demand. The government’s recent tax measures on the real estate sector, along with the new budget have jolted real estate’s rapid expansion, particularly in construction and labour.
Even if political developments do not directly affect market trends such as property prices, and infrastructure progress, they can slow or delay plans. Clients are always cautious of investments and weigh the advantages and downsides before placing all their eggs in one basket. Fluctuating political circumstances impede a steady road to advancement and frequent investments and hinder potential sales.
The reciprocity between the economic environment and the real estate market is obvious in the fact that building costs, raw material prices, and property prices are intertwined so if one increases in cost, the others follow suit. Similarly, when real estate flourishes, so does the economy. In Pakistan, the real estate sector significantly contributes to economic investment and growth. It produces jobs, opens investment possibilities, expands infrastructure, etc. Real estate is a consistent source of earnings and revenue. The impact of the economic crisis might bring the industry to a temporary halt, but firms should continue to operate and facilitate investors and clients. They should continue their business per usual and gauge market changes to improve prospects.
Maryam Nawaz Kayani
Islamabad
Published in The Express Tribune, August 30th, 2022.
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