Are you fed up with hearing about Pakistani Rupee depreciation and its negative effects all around? Well, here is something that might grab your interest. The thing is that currency devaluation has proven to be a blessing in disguise for our Real Estate industry. The realtors are cashing the chance these days by taking full advantage of the decrease in Rupee’s value which automatically makes the foreign currency more expensive and overseas Pakistanis are willing to buy more capital assets. Especially they have a great opportunity to invest in real estate projects.
The government has increased the interest rates from 13.75 to 15 percent which has left a drastic impact on the economy and its factors. It indicates that the people are unable to continue normal business operations and seem helpless. But for some reason, we see that there is a privilege for our real estate dealers. Look further to see how it is impacting the real estate industry:
Expensive raw material
The builders and construction agencies are buying and importing the raw material at higher rates. That automatically increases the property prices. So, local citizens avoiding buying property for now.
Beneficial for overseas Pakistanis
Overseas Pakistanis have a golden opportunity to possess a real estate asset in Pakistan right at a moment. Why? Because now they can purchase the property at cheaper rates. It is marked as a golden opportunity because there are chances of an increase in the Rupee’s value which will eventually make the property costly again. So, hurry up folks.
In Avalon City Islamabad, for instance, a 5 marla plot costs $6193, even though one dollar is equal to Rs 218 there. In contrast, if the rupee had remained flat and the dollar had equal value to Rs 190, he would have paid $7105.
The overseas realtors and even normal Pakistanis can save and preserve their money by locking the deal in the meantime. This will let them make a reserve out of their earnings and they can sell it later on at higher prices. Think about it and avail the opportunity before it’s too late.
Good news for the rental Agents
We have discussed the overseas above, but what about the local citizens? Because now their purchasing power has decreased and they are unable to purchase the property here. But at the same time, they are willing to get the residence on rent. So, the demand for rental property increased. Plus, the overseas Pakistanis can purchase the property and can offer it as a rented one to get a smooth flow of income. One more factor that promotes the rental market is the increase in the housing finance interest rates. The increased interest rates discourage people to buy property so they move towards getting the house on rent.
Make the process easier
This whole situation raises a concerning issue for overseas Pakistanis. The problem is with the complicated paperwork and legal barriers. The realtors are now thinking about making the process easy and convenient for overseas Pakistanis. Digital transactions and the biometric system might prove to be helpful in this regard.
Helping the state to gather foreign exchange
Currency devaluation encourages overseas folks to send more remittances and buy assets in Pakistan. So, they prefer buying property for good and guaranteed returns. They send the payment in form of foreign currency that is helping the government to raise foreign exchange reserves.