Presently, the real estate sector is facing downtrends in Bahria Town Karachi. If people face insecurity about any project, they hold their money. It makes the real estate market stagnant. In case of Bahria Town Karachi, people are relatively more conscious, because the owner is under trial by judicial authorities of the country. This news has shackled the confidence of many stakeholders and investors.
A general perception about recovery of this sector’s growth is that this slump will continue until the tycoon of this sector is proved innocent. However, such narrow analysis fails to anticipate the actual results until it foreshadows other influencing factors. Such a big market is not determined by a single factor.
Besides accusations of land misappropriations on Malik Riaz Ahmad, many other factors also contribute to real estate dynamics. These factors include implementation of real estate regulatory framework, limited tax filers, and uncertainty of investors about upcoming taxation policies.
If analyzed on a larger frame, downtrend in real estate sector isn’t confined to Bahria Town Karachi rather it is prevalent in whole sector. Why are the other real estate societies also experiencing this downtrend? Are their owners also charged with practicing unauthorized business acts? Obviously, the answer is no. The picture gets clearer if real estate regularizations imposed by the government are revised.
The government has placed a rule that no non-filer can make purchases beyond PKR 5 Million. As there is limited number of tax filers in Pakistan, the non-filers have withdrawn from the sector that works on huge investment. Consequently, 59 percent of the property investors have withdrawn their investments form real estate business. In addition, the new government aims to reform taxation policy. Unless investors don’t get a clue about the possible consequences of the new taxation policy, there will be insignificant activity. The situation is offering high time to the wiser investors to make real estate purchases.
Slowdown pertaining to uncertainty in real estate sector seems justified. Every action has a reaction and this stagnation is reaction to government’s real estate regulatory action. As soon as, the non-filers get registered and government gains the confidence of investors with its progressive policies, these reforms will be absorbed by its participants. And thus the real estate business will get back to its normal pace. The experts at Ali Saqlain Real Estate and Builders are confident of the quick revival of realty industry and suggest the investors to make bold decisions for the highest ROI in near future.