Real estate business in Pakistan has always been under discussion and debatable from various aspects. Because Karachi and Lahore are the main cities in this regard both these cities also become a part of that discussion. Specially is case of Karachi property business most of the people have been lucky in the past few years, but if we go back and read about the history of Real Estate Karachi some have even lost all their life’s saving in the Karachi Real Estate Business, the question is how and why? Well, we at Rightdeed.com are always striving to bring you not only the latest news and updates about the real estate business but also precious piece of advice based on the opinion of our expert’s panel which can be easily named as a Real Estate Think-tank.
Before discussing whether it is feasible or not to invest in Karachi Real Estate business, we would have to discuss some facts and figures and also, a brief view of all that happened in the Past 15 years in Real Estate Karachi of Pakistan.
For those who are new in that field, there is nothing to worry about, as it is no more a rocket science, real estate business is also as simple as any other sector. The basic rule which apply on all sorts of businesses is Demand and Supply; it applies on the real estate sector as well. Whenever demand of real estate is high and supply is low, prices go up. In the same manner when the demand of property is low and supply is high price have to face an ultimate fall.
As a matter of fact, the people who suffered in the Real Estate Karachi business during the last few years were those who did not have any idea of this basic demand and supply rule. They either bought property right before the rates were going to rise or during a sudden fall suffered great loss. Or they could not judge the political flow of Karachi which keeps on changing from time to time. Whatever the case may be, one has to ponder a lot while working in the Karachi property business market. When you are into property, no matter it is Real Estate Karachi or Real Estate Lahore you would have to know the basic facts when demand gets high and how it gets low otherwise you will have to face the consequences.
For an impartial view about the Karachi Real Estate, we would have to take a deep look upon the history of Karachi property industry which will make it quite easy for you to decide when to invest and when not to take the risk.
Why Karachi Real Estate Faced a Crash in Early 2000?
In fact, it was a very hard time for the Karachi Real Estate business as. Though it was not specific for the Karachi property market, as it crashed in whole of the country. The upheaval in the political environment of Karachi was one of the main reasons behind it. Due to the terrorism mixed political scenario played a great role and it was why the Karachi Real Estate crashed in that specific era which obviously had an everlasting impact upon the upcoming days of Real Estate Karachi business.
Other reason behind this was that due to the unfortunate incident of 9/11 most of the overseas Pakistanis especially who lived in the European and United States of America had to face a great deal of disturbance and migration. As they had to come back to Pakistan and bought houses in DHA Karachi, houses in DHA Lahore and houses in DHA Islamabad, the demand suddenly went high and the prices went up. It was a kind of artificial rise as when the conditions got stable, people again started to settle in their respective countries.
After that the Real Estate business faced a remarkable bloom in the 2016. Though the real estate business had some booms before that era too, but these were not so much noticeable as compared to the bloom in the 2016.
Most affected areas due to this bloom if talking about the Karachi Real Estate market were as follows:
Luxury real estate sector comprising of prices of properties over 2 Crore or more were highly affected by this boom in 2017. As an after math still effects are predicted in in the coming days by various real estate experts. To be simpler and more precise, price fall was observed more than 20% after the artificial rise in Karachi property prices. And obviously the most affected was the high price real estate sector. Similarly, the less affected area of investment was the 5 and 3 Marla properties sector.
How to deal with it
The core purpose of that article is to guide you in such a manner that if such case happens again, you may not suffer by acting upon our advice. As an investor, no matter you are a new one or a seasoned one, you should always act like an opportunist. For that you will have to look upon the positive side of the picture rather than the gloomy one. For example, now property prices are lower as compared to the past, so it is the best time to invest and seek new investment destinations like Gwadar, Bahria Town and DHA Karachi. However, do not expect miracles overnight, this is a very tricky game and you will have to wait for the proper time before you get some really sweet fruit.
We would wait for your precious piece of mind in the comment’s section below.