WILL UAE’S REALTY MARKET FEEL THE SQUEEZE?

Will Dubai’s property market feel the squeeze as resident Pakistanis and Indians lower their investment exposures abroad? That’s the multibillion dirham question confronting developers and property sellers here.

In the past, any ripples within the economies in India and Pakistan have been felt in the Dubai market as well. As far as ripples go, the taxman’s scrutiny counts as a perfect storm. According to Imran Farooq, CEO of Samana Group: “Tax amnesty at a friendly tax rate was a good chance for resident and non-resident Pakistanis to get into the tax net. Streamlining the tax system through an amnesty will support all stakeholders, create transparency, encourage two-way investment, and support the economy.”

Real estate consultants in Pakistan that Gulf

News spoke to were noncommittal about the amnesty’s short-to-medium-term impact on real estate purchases. “I’ll not try and guess what it could mean for investments into Dubai or other real estate destinations,” said a consultant with a leading property brokerage firm in Karachi.

“But the [Imran] Khan government’s reforms seem to have worked well in improving the prospects of Pakistan’s own real estate space after years of weak to no-growth.”