Sad chapter for Pakistan’s property investors
With political turmoil abound, property owners in Pakistan are thinking twice about their investments.
It seems that politics can have a greater impact on the property market than once thought. Take the example of Pakistan, for instance. Since the assassination of PPP chairperson Benazir Bhutto and the riots that followed, a survey by the Daily Times found that property transactions in the area have become horribly sluggish. Some investors are even reporting their intention to pull money out of the property market in the region.
With negative outlooks on the political and social situation as a whole in the country, most property investors would rather place their money in Dubai or the Ajman area where higher returns are virtually guaranteed.
CEO of Fortune Entrepreneurs Amin Gabriel "Investors have opportunities to capitalize their money from minimum investment of Rs 5 million in various housing and commercial projects of Dubai and the uncertain political situation at home has fuelled interest to shift their property in overseas."
This, combined with a number of other factors, has had a serious economic impact on the country. The central bank in the region has suggested that the growth rate for the coming year will be less than seven percent, and with high inflation, energy problems, and ongoing riots and property damage in the area, few investors are expected to become interested in the area again soon.
A once robust market for foreign investors, Karachi's main share index has increased tenfold in the last seven years. With nearly 14 million in the capital city alone, it was a great idea for many property investors. Even with the past history of soaring prices, though, most have suggested that virtually all investors pulled out after Bhutto's death.