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Impact of inflation on real estate in Pakistan!

Impact of inflation on real estate in Pakistan! 1200 628 D. I. Khan New City

Inflation has a huge impact on real estate in Pakistan. Land prices, homes, apartments, and other real estate types have been rising steadily for the past few years. This directly affects the affordability of real estate for ordinary citizens. As inflation increases, the cost of living also rises, making it difficult for people to afford to buy property. In addition, the increasing prices of real estate also affect the construction industry, as materials become more expensive and wages remain stagnant.

The current economic situation in Pakistan has created an environment where many people are unable to purchase property, and this has caused an overall slowdown in the real estate sector. This article will explore the impact of inflation on real estate in Pakistan and what can be done to ensure that the sector remains healthy and vibrant.

 

Impact of Inflation on Real Estate Prices

Inflation is a term that is often used interchangeably with rising prices, but there is a lot more to it than that. Inflation is a general increase in the prices of goods and services in an economy over a certain period of time. This is caused by a combination of factors, such as supply and demand, monetary policy, and government spending. Rising prices are a natural consequence of inflation and can be detrimental to real estate prices in various ways. While demand for property is high, real estate becomes a lucrative investment option. However, rising prices cause the affordability of real estate to decrease, thereby decreasing demand and putting downward pressure on prices.

Real estate investors need to be aware of the current trends in the market and understand which way prices are likely to move. Inflation can have a huge impact on the value of the real estate, but it is also important to take into account other factors that can also affect prices. For example, a sudden increase in the supply of a particular type of property can cause prices to drop, even if the economy is experiencing high levels of inflation.

 

Effects of Inflation on the Construction Industry

Real estate is one of the highest-risk industries in the world. The majority of projects are delivered late and often over budget. This is due to a variety of factors, but one of the main causes is an increase in project-related costs. Construction companies are forced to pay more for materials and workers, which in turn means higher project costs for the buyer.

This can have a detrimental effect on the delivery time and cost of future projects that are currently in the pipeline. If these projects are unable to secure financing, they will be delayed or even canceled. This can create a ripple effect that damages the whole industry and has a knock on effect on the whole economy. Inflation can also affect housing and commercial property developers, as well as investors, who have to spend more on labor and materials.

 

Impact of Inflation on Affordability of Real Estate

The inflation rate is a key indicator of how much the cost of living is rising. If the inflation rate is high, the cost of living is also high, and people’s purchasing power will fall, making it difficult to sustain living standards. This can have a huge impact on the affordability of real estate. As the cost of living increases, people have less disposable income to spend on things like buying property. This can cause demand for property to fall, and real estate developers may find it difficult to sell their products.

Inflation can also affect the affordability of interest-only mortgages. If the inflation rate is high, the interest rate may also be high. This means that people will have to pay higher monthly payments, which may become unaffordable for many. This is particularly problematic for people who are taking out a mortgage for the first time and are not earning enough to make larger monthly payments. If people cannot afford their monthly payments, then it can lead to a rise in defaults and foreclosures.

 

Impact of Inflation on Property Demand

As the cost of living increases, people have less disposable income to spend on things like buying property. Real estate developers can depend on government policy to affect the demand for property. If the government imposes restrictions on buying or selling property, it can impact the demand. For example, if the government imposes a capital gains tax on the sale of real estate, fewer people will want to sell their property, and demand will drop.

The government can also regulate the supply of land, which has an impact on the demand for properties. For example, if the government places restrictions on developing land, demand will decrease, as there will be fewer properties available. Additionally, the government uses monetary policy to manage the supply of money in the economy. This can affect the demand for property, as people have less money to spend.

 

Measures to Control Inflation and Boost Real Estate Sector

When inflation is high and rising, the government may take action to combat this and control the situation. There are a number of ways in which the government can control inflation in the economy, including Increasing interest rates – this causes the exchange rate of the currency to rise and makes imports more expensive.

This reduces the demand for imports and can help the economy in the long run, although it can have a short-term impact on the economy, as it can make exports less competitive. Introducing tax increases – this can be done on a number of different items, including property. Increasing taxes can help the government to recoup revenue and reduce the deficit. Introducing government spending cuts – this is a short-term measure that can help to reduce the deficit and stabilize the economy. It can take some time before it has an impact, however.

 

How to get the maximum return for your investment in this inflation?

Investing in this inflation can be tricky, but it can also be very rewarding. To get the maximum return on your investment, you need to be smart and strategic. First, it’s important to research the market. You should look at the current trends in Pakistan’s stock market, as well as any upcoming developments that could affect your investments. You should also research different investments and understand the risks and rewards associated with each one. Once you’ve done your research, you can start investing. It’s best to diversify your portfolio so you don’t put all your eggs in one basket. Additionally, you should try to invest in high return investments, such as stocks, bonds, and commodities. Finally, you should monitor your investments regularly and make adjustments as needed. By following these steps, you’ll be able to maximize your return on investment and enjoy the rewards of your hard work.

 

Final Words:

The real estate sector is the one sector where nothing can be predicted exactly. Inflation, political situation and some other factors play a huge role in it. Thus it is very difficult to forecast about the market about to unfold. All we can do is to give some estimate on it by any means.

JK Marketing organized an open house for D. I. Khan New City

JK Marketing organized an open house for D.I. Khan New City

JK Marketing organized an open house for D.I. Khan New City 2048 1072 D. I. Khan New City

JK Marketing, Pakistan’s leading premium marketing company, organized an open house for D. I. Khan New City, inviting Jehangir Saifullah Khan, Chairman D. I. Khan New City, as Chief Guest. The open house featured an elaborate information session to bring current and potential customers up to speed with the latest developments, and all the opportunities and amenities D. I. Khan New City has to offer.

Financing Options for Owning a House in Pakistan with Roshan Apna Ghar D. I. Khan New City

Financing Options for Owning a House in Pakistan with Roshan Apna Ghar

Financing Options for Owning a House in Pakistan with Roshan Apna Ghar 1200 628 D. I. Khan New City

Home financing options in Pakistan have increased drastically in the last decade. Gone are the days when one had to wait all their life saving up to be able to build their dream abode. It has now become easier than ever to finance a house with the help of suitable mortgage rates and lower rates of interest along with longer debt maturity. In addition to this, Commercial banks have started providing housing finance schemes as well. Given following is a step-by-step procedure on how one can utilize house financing programs in Pakistan:

  1. Begin by selecting an institution that provides house financing. Most commercial banks, private or state owned, provide house financing schemes for example the ‘Apna Ghar Scheme’ started by the Bank of Punjab. House Building Finance Corporation (HBFC) was established solely by the government for the provision of home financing. Any institution may be selected as per the individual’s preference.
  2. Once the institution has been selected, apply to the house financing scheme by filling out the application form provided by the institution. The documents which are usually required include: Computerized National Identity Card (CNIC), income certificate, tax returns of FBR, current residential status and a personal guarantee. A minimal fee and waiting period are typically required for the processing and verification of your request.
  3. The third step involves choosing the option which best suits your priorities. These may include either the institution providing you a home fitting to your requirements, or you choosing a house in your preferred locality and requesting the institution to pay on your behalf. Land may be chosen, and a house may be built on it later, with all construction costs borne by the institution.
  4. In the final step, the institution determines your financial capacity using a team of qualified experts. The assessment usually looks at your financial resources, sources of income and credit history. Once selected as a suitable candidate, the loans are granted as per the decided terms and conditions. Some amount may be charged by the institution as down payment, but the rest is paid in installments as per the schedule provided by the institution. In the event of default in payments, the bank reserves the right to cease the asset and pursue legal action against you. Once the full payment has been done, the ownership of the property is transferred to your name.

 

Such a scheme is the Roshan Apna Ghar scheme launched by the State Bank of Pakistan for both Non-Resident Pakistanis (NRPs) and Pakistani Origin Card Holders (POC), allowing them to digitally or remotely purchase a property and build or renovate a house through their own investment or by using financing provided by a bank. Both conventional and Shariah compliant variants are offered under the scheme with favorable rates for a time span of three to twenty-five years. The digitalized process has made it much easier for overseas Pakistanis to obtain housing finance to invest in Pakistan’s real estate. NRPs who are looking to invest or obtain financing in pre-approved projects are given faster processing of their request. Investments by RDAs are repatriable and subject to full taxation.

 TYPES OF FINANCING OPTIONS

Standard Financing:

Lien Based Financing: NRPs can obtain house finance against lien on their RDA deposit balances or Naya Pakistan Certificates. Banks can finance up to 99% of the property value for the purchase or construction of houses; for renovation of house, financing is capped up to 40% of the property value. No mortgage of property, equitable or registered, is required against lien-based financing facility. The borrower will sign all the financing documents digitally, physical presence is not mandatory for execution of sale or transfer deed. The borrower will, however, have to nominate a person in Pakistan to complete the sale or purchase formalities and get the property transferred in the borrower’s name.

Non-Lien Based Financing: This is normal housing finance offered against mortgage of the property to be purchased; banks fund up to 85% of the property value for purchase or construction of house, and up to 30% of the property value for renovation of house. While the borrower will digitally sign the financing documents, their physical presence or power of attorney in Pakistan will, however, be required for obtaining the property’s title documents from Registrar etc. and creating the bank’s charge on the property. The banks will provide the soft copy of the Special Power of Attorney (SPA) to the borrowers for downloading, printing, signing, getting it attested by the Pakistan Mission in the borrower’s country of residence and sending the same to the attorney. Pakistan Missions and Foreign office in Pakistan has made special arrangements for attesting the SPAs of RDA holders on priority.

Government Mark-up Subsidiary Scheme (GMSS):

The house financing facility under GMSS is also available for RDA holders under Roshan Apna Ghar product as per the already defined criteria under respective tiers. In this case the financing rates applicable to Government mark-up subsidy scheme would apply.

UBL Roshan Apna Ghar is a unique financing facility that enables Overseas Pakistanis to invest in residential real estate in Pakistan. The facility is open to all UBL Roshan Digital Account holders in both Conventional and Islamic modes of financing. UBL is offering special discounts and offers for the clients of D.I. Khan New City . Special rates of markup with prioritized processing and disbursement will be offered to DIKNC customers for banking products including House building financing, loans for solar energy equipment, car financing and other special products.

Hungarian Commercial Counsellor Meets Jehangir Saifullah Khan

Hungarian Commercial Counsellor Meets Jehangir Saifullah Khan 1372 1200 D. I. Khan New City

Islamabad, August 16, 2021: Dr István GrafJodi, the Commercial Counsellor of the Hungarian Embassy in Islamabad met with Jehangir Saifullah Khan, Chairman D I Khan New City, during his visit to the D. I. Khan New City office in Islamabad today. Dr GrafJodi, expressed his appreciation for the international standard, a mega project undertaken by Saif Group. He also shared his admiration for the vision and mission of D.I.Khan New City, it’s advance design principles, its inherent social values integrated in its development endeavours and remarkable progress.

On the occasion, Mr Khan praised the concrete efforts made by the Hungarian Government to increase trade between Hungary and Pakistan. Both parties agreed to work together on numerous projects including D I Khan New City. With hopes of fostering a positive relationship between the two countries, team D.I.Khan New City is delighted to embark on this journey of collaboration.

D I Khan New City, is an endeavour of JK&S Global Developers, which is a fast-growing real estate development company of the Saif Group, living up to the excellence of the highly reputable and well-admired business house with a long history of delivering successful projects across the country.

D I Khan New City, is an international standard city with all the amenities of a modern urban city, in the foothills of the natural beauty of Southern KPK. Promising spectacular views, state-of-the-art infrastructure and modern residential and commercial facilities, its advanced design principles, following the highest standards, works ambitiously to provide an uplifted luxury lifestyle. The approach to the development is unique in its guarantees and holistic city development and not just residential areas. More information on the city can be found at www.dikhannewcity.com 

Jehangir Saifullah Khan

Eid Mubarak from Jehangir Saifullah Khan II Chairman D. I. Khan New City

Eid Mubarak from Jehangir Saifullah Khan II Chairman D. I. Khan New City 1920 1080 D. I. Khan New City

Jehangir Saifullah Khan, Chairman D. I. Khan New City, wishes everyone a very blessed and joyous Eid. May Allah open the doors of happiness and prosperity for you and your family.

Team D. I. Khan New City wishes you and your family Eid Mubarak. May this Eid bring everyone happiness, prosperity, and countless blessings.

About the project

Another great venture of Saif Group after our premium real estate project Eighteen in Islamabad. D. I. Khan New City is first time an International standard city of the region with modern facilities and luxury living. For plot booking or more information about the project contact us on our WhatsApp number. +92 303 222 4345 or UAN no. +92 51 111 000 345. Stay tuned with us for regular updates at FacebookInstagramLinkedInTwitter & YouTube.

 

Inauguration Ceremony of D. I. Khan New City (A project of Saif Group)

Inauguration Ceremony of D. I. Khan New City (A project of Saif Group) 1280 853 D. I. Khan New City

“D. I. Khan New City”, a landmark project of JK & S Global Developers (Pvt) Ltd, a Saif Group company organised an Inauguration Ceremony on 25th of March 2021. The inauguration was done by Mr. Ali Amin Khan Gandapur, Federal Minister for Kashmir Affairs and Gilgit-Baltistan. He appreciated the efforts of Saif Group and especially thanked Jehangir Saifullah Khan, Chairman of D.I.Khan New City for his selfless efforts for bringing such a world-class project for the first time in this region. He further said that it is Prime Minister Imran Khan’s vision to develop such mega projects as it reduces the burden on current cities, while it creates thousands of Jobs which is the need of the hour. Speaking on occasion Mr. Jehangir Saifullah Khan shared how his roots connected with the region inspired him to initiate this project. He always wanted people in the region to have a quality lifestyle and this project will go a long way in the development and upliftment of the area. He also informed that the project development has already started at a full pace and they have successfully completed various roads in record time. Chairman Saif Group Javed Saifullah Khan in his speech thanked Mr. Ali Amin Khan Gandapur for taking time out and attending the ceremony also informed the guests that Saif Group being the pioneer in the telecom and IT sector in Pakistan will also be developing an Information technology park in D.I.Khan New City and will encourage local and international companies to set up their offices here. The ceremony was attended by various government officials, businessmen, and notables of the area. Mr. Iqbal Saifullah Khan chairman of Kulsum International Hospital also attended the function and announced setting up a branch of Kulsum International Hospital in D.I.Khan New City.

D. I. Khan New City is a landmark project with a vision to create an international standard city with modern facilities and luxury living in Dera Ismail Khan District of KPK.

Nested on the CPEC, western route D. I. Khan New City is a gated community with a 24-hour surveillance and security system for its residents. The city will combine a breath-taking landscape with wide and clean roads and spaces to create a beautiful environment where people will have access to the best education and health system in the region and other essential and luxury amenities.

D. I. Khan New City and Sarhad University signed a MOU

D. I. Khan New City and Sarhad University signed a MOU 1024 768 D. I. Khan New City

“D. I. Khan New City”, a landmark project of JK & S Global Developers (Pvt) Ltd, a Saif Group company with a vision to create an international standard city with modern facilities and luxury living and “Sarhad University of Information Technology”, Peshawar, an HEC recognized and category “W- 3” ranked University signed an MOU for establishing University sub Campus at DIK New City.

Where, D.I.Khan New City is a gated community near CPEC western route with a 24 hours surveillance and security system. The city will combine a breath-taking landscape, non-stop electricity, the best education system which includes schools, colleges, and universities. This project is initiating for the first time in the region, a modern health care system by introducing hospitals and labs with the latest technologies. Other essential amenities include mosques, parks, malls, and restaurants, and many more.

“Sarhad University” has an exceptional national and international reputation, imparting quality education to a large number of students in various fields of learning, earning HEC the highest rating of excellence for Engineering, Pharmacy, Computer, Management, Social and Biological Sciences. The University is dedicated to students’ welfare and provides all support and guidance in their quest for successful careers and jobs.

Dhaki Dates – D.I.Khan New City

Dhaki Dates – D.I.Khan New City 2560 1707 D. I. Khan New City

Dhaki dates are famous produce of D. I. Khan the northwestern region of Pakistan. This is a spectacular area to see the scenic beauty. The region is also known for the production of Chuara – dry dates with hardened skin. Pakistan is among the top ten date-producing countries. The Dhaki dates are high in demand for both the local and international markets. The variety, quality, and taste of Dhaki dates are comparable with known International brands.

Dhaki Dates @ D. I. Khan New City

Annually this region (Khyber PakhtunKhawa Province – Pakistan) produces 90,000Kg dates. Dhaki dates are yellow in color with larger size, having mouthwatering taste. The harvesting process continues for around 15 days based on weather conditions in August.

New city is crowded by famous date trees, as located in famous dhaki dates area. The date farms enhance the scenic beauty and natural environment of the D. I. Khan New City and its surroundings. At D. I. Khan New City palm trees are all around.

Master plan of D. I. Khan New City (The Crown of Pakistan)

Despite strong association of Palm trees, D. I. Khan New City landscapes are mesmerizing. The uniquely planned new city on Dubai Down Town model have all modern facilities which anyone dream off for luxury living. Destination development is the strategically planned in D. I. Khan New City and the advancement of this area to support the evolution of desirable destinations for travelers both locally and internationally. The sole focus is to uplift living standards of area by providing compelling experiences, quality infrastructure, and remarkable services.

About the project

Another great venture of Saif Group after our premium real estate project Eighteen in Islamabad. D. I. Khan New City is first time an International standard city of the region with modern facilities and luxury living. For plot booking or more information about the project contact us our WhatsApp number. +92 303 222 4345 or UAN no. +92 51 111 000 345. Stay tuned with us for regular updates at Facebook, Instagram, LinkedIn, Twitter & YouTube.

The site development is being done in full speed

The site development is being done in full speed 2560 1920 D. I. Khan New City

The site development is being done at full speed. Machinery is deployed and continuously working and as result, the access road is almost completed. With overwhelming response from the people of Dera Ismail Khan and nearby areas, we have decided to speed up the work so that our buyers can see the progress and are satisfied with their investment. D.I.Khan New City is bringing a lifestyle that has never been introduced in Dera Ismail Khan before.

Please feel free to visit our site offices, in D. I. Khan City, Peshawar Sales Office, Islamabad Sales Office, or Site Office. The plots are available on the most affordable prices and will be definitely your best investment for a lifetime. For more details call (051) 111-000-345)

Dua e Khair for D.I.Khan New city held on 12 Rabi-ul-Awal

Dua e Khair for D.I.Khan New city held on 12 Rabi-ul-Awal 2048 1365 D. I. Khan New City

Dua e Khair for D.I.Khan New city held on 12 Rabi-ul-Awal on our site. As planned, the development work on the site started on this sacred day. At the Dua e Khair, Jehangir Saifullah Khan (Chairman D.I.Khan New City) participated in the ceremony.

The ceremony started with the name of Almighty Allah, recitation of Holy Quran and special dua was offered for the success of the project – heavy machinery is mobilized to start the work of the access road which connects the site to Paharpur road. The site is developing at full speed to make sure the buyers are satisfied with the progress and with investing in a kind project in Dera Ismail Khan. With this project, we promise a complete lifestyle for the people in D.I.Khan. We have started booking for our first phase of residential plots (5 Marla, 11 Marla & 1 Kanal) with very affordable prices for details call on our UAN number (051) 111-000-345.