STATE OF THE MARKET: INVEST IN PAKISTAN
Middle East investors are showing interest in Pakistan’s flourishing real estate market, and we bring you the figures
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.”