The property market of Pakistan is going through a rough patch from past 2 years mainly due to political instability and highest ever inflation resorting people to buy gold, dollar or dollar denominated assets.
People have lost over 50% or more in term of dollars equivalent in past 2 years and property outside Lahore depreciated significantly more especially in Quetta, Multan and Bahawalpur.
There are some positive developments recently. For example, stability of dollar @ 280, deal with IMF and support from China and Gulf. The rampant growth in the stock market of Pakistan also felt like a cool gentle breeze.
The period from Sep 24 to Sep 25 seems a period of turbulence in terms of political stability will therefore inhibit the growth of property market. The country may go through an election/selection process during this period. So, chaos, protest is possible however, with declining inflation and policy rate things could be under control.
The period from Sep 25 to Sep 26 seems a period of stability after a rough patch can layout a platform for solid growth the policy rate will reach in single digital below 10% in Sep 26
The period from Sep 26 to Sep 27 will be year of growth for property market, prices will peak again more than 50% to that of in start of year 2022, the growth rate is expected beyond 5% with policy rate in the range of 6%-7%.
The worst for property market is over. No matter the situation is there is a lot of hope and growth potential in Pakistan in times to come.
alpha replied on Monday, August 12, 2024 10:16 AM
meh... |
