Decrease in interest rate will support real estate sector

  • 5 months ago
  • Blog
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The government of Pakistan has reduced the interest rate from 14.25 percent to 9 percent in March April 2020. Good days of the real estate market are on the go now. Real estate sector is always attractive for the investors, especially the properties in Bahria Town Lahore and Karachi are liked by all income groups in the country. However, magnetism of this sector boosts when interest rate is low. Many people try to invest their money in stocks or prefer to keep their money in bank accounts in times of high interest rate. As high interest rate not only offers them safety but also higher return on investment. However, when interest rate falls, people start searching for some alternative investment area. In such state of affairs, the charm of realty sector is greater than always. Low interest rate and real estate sector become a safe haven for each other and the properties in Bahria Town Lahore present the best option to earn huge profits.

Cash-Cow business
Low interest rate offered by the banks means lower return on investment in the form of fixed deposits. But the investment in real estate sector implies higher returns when the interest rate is low. The investors know this with special reference to properties in Bahria Town Lahore. There is boom in economic activity as people can easily get loans on lower interest rate and there is higher activity in property and construction sector. Real estate prices are less characterised by the fluctuations in fiscal indicators. It means the property prices increase stably producing spread for the investors.

Investment protection
As reported by the experienced real estate investment consultants, the biggest show of protected ROI could be seen when it comes to properties in Bahria Town Lahore. Investing in realty market is always safe. The banks and other financial institutions cannot entertain their investors during time of lower interest rate. Investors shy off from investing in financial institutions, because there prevails higher volatility regarding returns especially during such times. The owners of the properties in Bahria Town are enjoying consistent incomes with their investments in safe hands.

Safety against inflation
The peculiar feature of realty market is that it protects its investors from the pains of inflation, whatever the market condition is. When interest rates are falling, one thing for sure is that inflation will go up sooner or later. So even if you are holding more money, this money will lose its value in longer term due to inflation. But realty sector keeps value of your money safe. Experts consider the time value of money while transacting properties in Bahria Town Lahore.

Wide investment portfolio
There are varieties of options available in realty market where people can invest. These options include residential and commercial plots, houses, apartments, farmhouses, showrooms, shopping malls, commercial shops and commercial shops. This variety offers greater incentives to individuals in such times. Properties in Bahria Town Lahore and Karachi offer every type of constructed and unconstructed choices.

Government supported sector
Recently, the government of Pakistan has recognized the construction sector as a separate industry. When interest falls, governments offers multiple incentives to realty sector to keep the economic activity in process. The government of Pakistan has recently announced a package where purchase and sale in construction sector will be taxed lower than usual. This is therefore the right time to purchase customized properties in Bahria Town Lahore and Karachi.

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