Why Real Estate down in Pakistan 

Real Estate in Pakistan used to be regarded one of the safest and most profitable investment opportunities. Investors would earn fast returns, construction projects were booming. However, in recent years, the situation has changed dramatically. The Real Estate market has slowed down, and the interest of investor is decreasing day by day. Here are the key reasons behind this decline.

Weak Economic Condition of Pakistan

 The foremost reason for the current downfall is Pakistan’s fragile economic condition. High inflation, rising unemployment have severely affected people’s purchasing power. The general public no longer has the financial strength to consider real estate investment. 

Taxes       

 The Government has imposed heavy taxes on the "Purchase and Sale" of the property which is making it difficult for investors. 

High Interest Rates       

The Banks have increased the interest rate due to which the dealers cut off the Banks from borrowing, not only the buyers affected also builders.   

Uncertainty and Instability                         

In the past, people living in abroad played a major role in fueling the real estate sector by investing their savings back home. However, uncertain Pakistan’s economy, currency and policies Pakistanis are now hesitant to invest.  

 Fraudulent Projects       

Another significant reason for the decline is the rise in fake and fraudulent real estate projects. Many case where people were scammed out of  their savings through false promises and illegal housing scheme. Such incidents have severely damaged the trust of buyers, making them caution about investing in new developments.

Although the “Real Estate" sector in Pakistan is currently facing one of the most challenging phase. However, there is a hope for better days. If the government introduces meaningful economic reforms, the bank will reduce the interest rate and provide legal protection to the buyers, then this sector can be on the path of development.