Decline in Dubai Demand Is Exploding Prices of Pakistan Real Estate
The complex real estate relationship between Pakistan and Dubai continues
Real estate prices in Dubai have fallen by 16 percent year-on-year, according to the Dubai Annual Market Update Report released by Abu-Dhabi-based CBRE. At the same time, demand for Pakistan property from overseas Pakistanis living in Dubai has been on the rise over the past year.
Lamudi Pakistan’s network of agents and developers reported an increase in demand for properties in Karachi, Lahore, and Islamabad over the past year. Many of these experts believe that the increased demand is coming from overseas Pakistanis living in Dubai. This has an immense significance for real estate investors since Dubai’s Pakistanis spend billions on real estate every year.
Dubai Pakistanis have not completely given up on their adopted home. They still invest an average of approximately Dh. 6 billion in Dubai real estate per year, according to the Khaleej Times.
The authorities in both Dubai and Pakistan have cracked down on money laundering and tax evasion by Pakistanis in Dubai. Experts believe that the shift in demand is due in part to this fact. Additionally, the security situation in Karachi has vastly improved over the last year. This has also contributed to a positive outlook on the property market there.
Local and federal governments of Pakistan are currently making adjustments and passing laws that increase transparency in the real estate market. Punjab’s Land Record Management Information System is leading the way.
These government programs will contribute to the increasing demand for Pakistan real estate.