Huge Fall In Property Prices – Is Pakistan Real Estate On Right Track?

High property costs in Pakistan were because of the unchecked inflow of black money to the real estate sector. To keep the prices under-control, SC has issued a ruthless crackdown on black money and as a result, we can see a decrease in property costs. Although property costs are still out of reach for most Pakistanis, the prices have begun to fall which is considered a great news for home buyers in Pakistan.

Is The Market Now A Buyer’s Market?

It becomes a buyer's market when there are more properties for sale than buyers who are willing to purchase. And Pakistan real estate is currently going through the same phase. Due to the prices being on the higher side over the last few years, the market has seen a huge shortfall in genuine buyers, leaving the owners with no choice but to sell their properties at lower than market rates. In this situation, buyers are at an advantage as they have more property options and great bargains. Because of the price drop, genuine buyers are in the driving seat and market has inclined towards buyers.

Fair Property Prices Are Not A Dream Anymore!

Property costs reflect the buying capacity of purchasers. More prominent buying power implies that property cost is high and vice versa. Property costs in Pakistan have constantly been fixed by the general population with black money. This is the reason we have seen in past that property costs were rising overnight because of colossal inflow of black money into the real estate sector.

However, now the trend has shifted in the favor of genuine buyer with white cash. Costs are falling as genuine buyers have the less purchasing capacity. In the foreseeable future, property costs will be controlled by the buying capacity of genuine buyers. Costs will continue tumbling to the point where genuine buyers will have the capacity to afford the cost of properties.

To conclude it all, Pakistan has entered the golden era of affordable property costs, where genuine buyers could easily afford them. The time of day-trade has finished as now homes will be just to live. However, we must keep in mind that property prices are still 35-50% beyond the buying capacity of genuine buyers. So, just fasten your belts as the ride will be extremely uneven.