UAE ex­pats drive up house prices in Pak­istan

The Pak Banker - - BUSINESS -

A soft Dubai prop­erty mar­ket is en­cour­ag­ing Pak­istan ex­pa­tri­ates in the UAE to in­vest back home. This, in turn, is push­ing up prop­erty prices in Pak­istan, re­sult­ing in val­ues al­most dou­bling in some ar­eas.

Higher de­mand, es­pe­cially in Karachi and Is­lam­abad, was driv­ing prices higher on a daily ba­sis, ac­cord­ing to prop­erty bro­kers and de­vel­op­ers quoted in a re­port that ap­peared on Dawn.com. In con­trast, res­i­den­tial prices in Dubai have fallen by up to 15 to 20 per cent in re­cent months.

Ac­cord­ing to a Dubai an­nual mar­ket up­date is­sued in midDe­cem­ber, av­er­age res­i­den­tial prop­erty prices have fallen 16 per cent and 14 per cent year on year for apart­ments and vil­las, re­spec­tively, while over­all unit trans­ac­tions de­clined by 33 per cent.

"Am­ple liq­uid­ity for prop­erty in­vest­ment is push­ing prices up ev­ery­where, par­tic­u­larly in Karachi and Is­lam­abad," said Ashraf Hameed, the di­rec­tor of prop­erty de­vel­oper Value Hous­ing. He cited closer mon­i­tor­ing of the cross-bor­der move­ment of money and im­proved law and or­der sit­u­a­tion as rea­sons be­hind the up­trend. "We have no prob­lem of law and or­der in Is­lam­abad while the sit­u­a­tion in Karachi has also im­proved sig­nif­i­cantly," he added.

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