De­cline in Dubai de­mand is ex­plod­ing prices of Pak­istan real es­tate

The Pak Banker - - BUSINESS -

LA­HORE: Real es­tate prices in Dubai have fallen by 16 per­cent year-on-year, ac­cord­ing to the Dubai An­nual Mar­ket Up­date Re­port re­leased by Abu-Dhabi-based CBRE. At the same time, de­mand for Pak­istan prop­erty from over­seas Pak­ista­nis liv­ing in Dubai has been on the rise over the past year. La­mudi Pak­istan's net­work of agents and de­vel­op­ers re­ported an in­crease in de­mand for prop­er­ties in Karachi, La­hore and Is­lam­abad over the past year. Many of th­ese ex­perts be­lieve that the in­creased de­mand is com­ing from over­seas Pak­ista­nis liv­ing in Dubai. This has an im­mense sig­nif­i­cance for real es­tate in­vestors since Dubai's Pak­ista­nis spend bil­lions on real es­tate ev­ery year. Dubai Pak­ista­nis have not com­pletely given up on their adopted home. They still in­vest an av­er­age of ap­prox­i­mately Dh. 6 bil­lion in Dubai real es­tate per year, ac­cord­ing to the Khaleej Times. The au­thor­i­ties in both Dubai and Pak­istan have cracked down on money laun­der­ing and tax eva­sion by Pak­ista­nis in Dubai. Ex­perts be­lieve that the shift in de­mand is due in part to this fact. Ad­di­tion­ally, the se­cu­rity sit­u­a­tion in Karachi has vastly im­proved over the last year. This has also con­trib­uted to a pos­i­tive out­look on the prop­erty mar­ket there.

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