In recent years, the real estate business has experienced significant changes and uncertainties. The real estate market has gone through many challenges due to economic, political, and financial factors.
The global pandemic in 2019 severely jolted almost every sector. On the other hand, it turned out to be a remarkable year for the real estate sector and 2021 witnessed the beginning of many new directions and initiatives.
This leaves us with a question: Where will the Pakistan real estate market stand in 2022?
Industry professionals, investors and Pakistani realtors are optimistic about the future of the real estate market because the government of Pakistan is now focused on addressing the issues faced by the real estate sector as soon as possible. Given this information, the Pakistan real estate market is expected to skyrocket by 2022.
Following are some initiatives, necessary corrective measures and improvements, as well as the role that investors, realtors, and consumers need to play in the real estate market that will determine the forecast for 2022.
The development of E-governance provides a platform for reporting corruption, ensures convenience for residents, and reduced interaction with government functionaries. This remarkable initiative will give traders the confidence to make investments without fear of losing money. Due to the implementation of e-governance platforms, the Pakistan real estate market is predicted to grow in 2022.
CPEC is a huge step forward in Pakistan’s economic transformation and is expected to stimulate Pakistani real estate market in 2022. Along the CPEC route, a special financial zone is being built, and new real estate developments are being established.
Relaxation in FBR’s Regulations
Real estate regulations have been made considerably lenient by the Federal Board of Revenue (FBR). As a result of the favorable regulations, the Pakistan real estate market in 2022 is expected to boom. The authority has permitted and incentivized non-filers to invest large sums of money in the real estate market and purchase properties.
Current Tax Laws
The Capital Gains Tax is a tax that the seller must pay on the profit made from the sale of any property. Since the new tax reforms have been implemented, the Pakistan real estate market in 2022 appears to be fruitful. After four years of ownership, the individual will not be subjected to capital gains tax. This new reform benefits investors by shortening the holding period, making the purchase of property even more attractive. Meanwhile, this has begun to strengthen and support the foundation of Pakistan’s real estate market in 2022.
The President of Pakistan has signed the Tax Amendment Ordinance 2021 to help the country’s construction industry. Builders and developers can now smoothly register their real estate projects under the tax amnesty plan, which relieves them of the obligation to identify their sources of income and allows them to benefit from the fixed tax rate.
Challenges in Pakistan Real Estate Market 2022
The main difficulty that the Pakistan real estate market will face in 2022 is the proliferation of unprofessional real estate agents who encourage fraudulent and illegal ownership of land for sale. The government will need to take serious action against these fraudulent elements to protect the rights of the public and genuine investors.
Pakistan real estate market in 2022 is expected to be buzzing with activity and momentum. The real estate market also benefits from the new policies and packages, which include benefits for both ordinary people and investors. Consequently, the foreign and domestic investment will increase, and the Pakistan real estate market will surpass all the expectations in 2022.