I keep hearing mixed opinions about the real estate market. Some people say prices are dropping due to inflation and political issues, while others say the market is recovering. Can someone tell what is actually happening right now? Is this a good time to buy or should I wait a few months?
Well it is a perception that property price are down across Pakistan but this is not completely true. Only the long term projects, societies, plots, off-plan projects are down or rather still going through correction phase after they saw unrealistic surge in 2021 and 2022 due to developers' malpractices, overselling, and over-purchasing by buyers/investors.
Currently, the investment trend has shifted to other types of properties like physical assets including commercial shops, offices, apartments, houses, and even developed plots in posh areas.
Most of the investors now consider buying some income generating assets where they can earn regular monthly income, therefore shops & apartments in bustling commercial areas have gained traction. Moreover, the Airbnb business has gained momentum and people prefer to furnish their apartments and rent out through Airbnb for better rental income. People usually prefer studio or 1 bed apartments near Airport or city centers, where there is higher demand for rental properties.
Another trend is buying villas or apartments in Galiyat, also some people prefer buying farmhouse plots in northern hilly areas where they either keep it for self residence or use as rental property as these properties often render higher rental income than normal properties.
In short, genuine buyers are buying physical properties rather than investing in long term files & plots, and investors are buying such properties which can generate steady stream of rental income. So, these types of properties are in high demand, while those who invested in files, especially in private schemes, are still facing huge losses and they consider that the entire real estate in Pakistan is down.
