Pakistan » Market Report

Pakistan has 40% of its population residing in the urban areas, it is assumed that real estate would soon become a major industry and therefore attract foreign investment. With the new investment policy in place and foreigners now allowed to be involved in the property market. It is bound to change from its current situation. 

The government should take care while granting permission to the foreigners to participate in the local property market, it is said that if the foreign participation is limited to only the build up property or development of old ones, this will lead to creation of more jobs in the industry while the related industries such as the marble, the steel, the cement industries will flourish.

It is reported that International Housing Finance Limited has already increased its mark-up rate by 1% from 20% to 21% after the 'main' budget. Meanwhile, others are still contemplating increases in their mark-up rates. The increase will not affect those agreements that have already been signed but new ones only.

International Property Brokers forecasts that real GDP of average 4.9% will remain constant in the two financial years 2009 to 2013.  This percentage will remain constant due to the private economic consumption and investment. Government will be able to control inflation during the two financial years ranging from 2009 to 2013. The current account deficit will remain 6.8% between the financial years discussed above. International Property Brokers also forecasts that the property market of Pakistan will rise in the coming years as the prices of property have changed dramatically over the course of the last four years.