Mid­dle East in­vestors are show­ing in­ter­est in Pak­istan’s flour­ish­ing real es­tate mar­ket, and we bring you the fig­ures

Ekaruna - - Contents -

Ac­cord­ing to La­mudi, in­vestors in the Mid­dle East are ea­ger to buy and in­vest prop­erty in Pak­istan’s flour­ish­ing real es­tate mar­ket. At the top of the list of for­eign­ers that are also in­ter­ested in Pak­istani real es­tate is the USA, closely fol­lowed by Saudi Ara­bia, the United Arab Emi­rates, the United King­dom and Canada.

Pak­istan ’s Prop­erty Mar­ket Poised for Growth in 2015

Last year, Pak­istan’s prop­erty mar­ket suf­fered. Un­cer­tainty re­gard­ing the po­lit­i­cal sit-ins in Is­lam­abad, cou­pled with stag­nant prices in the real es­tate sec­tor showed a neg­a­tive im­pact on the mar­ket. How­ever, Pak­istan’s real es­tate mar­ket has re­bounded from the po­lit­i­cal up­roar that en­sued last Au­gust. The mar­ket has seen a sta­bil­is­ing in prices and even reg­is­tered an in­crease in some ar­eas of the coun­try’s cap­i­tal in the sec­ond half of 2014.

Dur­ing the third quar­ter of 2014, The strong­est price growth in Is­lam­abad was reg­is­tered in the E-11/3 area, see­ing a 7% in­crease, fol­lowed by the B-17 area, record­ing a 4.5% in­crease and fi­nally the DHA area, re­port­ing a 4.4% in­crease. Prop­erty mar­ket growth has been stronger in key cities in­clud­ing La­hore and Karachi.

There are high hopes for the prop­erty sec­tor in 2015, which has led to markedly im­proved in­vestor con­fi­dence as re­as­sured by Saad Ar­shed, Coun­try Di­rec­tor of La­mudi Pak­istan. “In re­cent months, we have seen re­newed in­ter­est from over­seas in­vestors in­quir­ing through our web­site,” he said.

The econ­omy has also shown im­prove­ment. In fact, the In­ter­na­tional Mon­e­tary Fund (IMF) re­cently in­creased its gross do­mes­tic prod­uct (GDP) growth pre­dic­tion for Pak­istan to 4.7% for the 2015-2016 fi­nan­cial year. The gov­ern­ment is now con­fi­dent of reach­ing its 5.1% GDP growth tar­get for 2014-2015.

Still, the coun­try needs much to get back “in shape”. Fig­ures from 2008 show that for­eign di­rect in­vest­ment (FDI) was at an all-time high at $5.4 bil­lion while, in 2013, the in­vest­ment had dras­ti­cally de­creased to $1.46 bil­lion. But, the gov­ern­ment hopes to turn this around by court­ing in­ter­na­tional in­vestors through its Board of In­vest­ment. And Pak­istan’s lib­eral for­eign in­vest­ment regime should be of much help with that with in­vestors be­ing of­fered tax ex­emp­tions and re­duced tar­iffs. Ar­shed be­lieves that “these fac­tors will help fur­ther spark the in­ter­est of for­eign in­vestors in Pak­istan’s most promis­ing in­vest­ment sec­tor.”

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