Investors, buyers, and sellers have experienced stability in 2019 in the Real Estate sector, but at the same time, investors have also received some good returns on their investments due to price hikes. 2018 was truly a nightmare for Real Estate Sector; there was a constant decline in the Property Market due to economic meltdown in the country, new property laws, and political instability. The dawn of 2019 also experienced a similar situation.
There is a basic fundamental rule on which the real estate sector works; demand and supply. Demand or the interest of the investors and buyers shows the volume of investment the sector is going to experience, whereas the supply indicates property stock. The interest of the investors and buyers for investment purpose increases the demand, which in result increases property prices. Similarly, the property prices will decline when there will be less property demand. Currently, the property demand is very less in Pakistan as few people are interested in buying property. Therefore, this may be the right time to invest in the Real Estate Sector in Pakistan. There is a pool of supply of properties in Pakistan as there are many on-going mega projects under construction or some of them are yet to be constructed; which increases the supply but at the same time, as the demand is low the prices have dropped.
Since 2005, Real Estate Sector has been witnessing many ups and downs. In comparison to the 2017 and 2018, the property transactions have been recorded very low. The property prices have been spiralled up to 130 percent due to improvements in the security situations in the metropolis of the country. Pakistan Real Estate sector witnessed high demands from buyers and investors. Also, overseas Pakistanis have showed great interest in this sector along with industrialists and businessmen. However, their purchasing powers seemed to decline due to booming prices. But, in the midst of the year when the law and order situation of the country seems to be in favour of the census, people have again started investing in real estate.
After examining the situation till the mid of the year, it can be concluded that this year will prove to be the moderate year for Pakistan Real Estate Sector due to rising interest rates, economic conditions, and strict black money laws which have kept the market subdued. Investors can also expect a big decline in prices if the situation remains the same which in turn gives them advantage to buy properties for long term profit.