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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.

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.

The Engine of Growth for Dera Ismail Khan

The Engine of Growth for Dera Ismail Khan 408 297 D. I. Khan New City
CPEC western route & Kallur Kot bridge – Game changers for D.I. Khan
Dera Ismail khan economic corridor

For any country construction of economic corridors is of immense importance to improve the trade and economic connectivity of a region. The signing of China-Pakistan Economic Corridor (CPEC) agreement is one such investment which is crucial for economic and geographical integration for Pakistan as well as China.

Due to its social, economic, and political impact, CPEC western route will benefit Dera Ismail khan and other locations along the way. Dera Ismail khan is a city with great economic and business development potential. Another edge for Dera Ismail khan is the Kallur Kot bridge which will connect Punjab and Khyber Pakhtunkhwa. This connection between the two provinces will prove to be beneficial for both provinces. A recent report by Business Recorder attributes Dera Ismail Khan as Paharpur -D.I. Khan Economic Corridor due to the developments taking place in the region.

CPEC western route

The road construction of CPEC will be carried out based on three routes – center, eastern, and western. The Western route among these routes is considered economically and politically viable compared to the Central and Easter routes. CPEC western route has several economic benefits including growth in employment, economic output, and household welfare. The route will pass from Gwadar, Turbat, Panjgur, Khuzdar, Kalat, Quetta, Zhob, Dera Ismail Khan, Bannu, Kohat, Peshawar, Hasanabdal, and onwards and will mostly cover the least developed areas of Pakistan such as Balochistan and Khyber Pakhtunkhwa. China will also benefit from CPEC due to reduced distance resulting in lesser time for shipment.

cpec western route di khan new city
kallur kot bridge di khan new city
Kallur Kot bridge

The construction of Kallur Kot bridge between Sargodha and Dera Ismail Khan will significantly reduce the distance between Punjab and Khyber Pakhtunkhwa. This improvement in connecting the two regions will lead to an economic uplift mainly through agricultural products of the entire region. Travelling time between Sargodha and Dera Ismail khan will be reduced by 2 hours. Kallur Kot bridge will not reduce the distance between Kallur Kot area and Dera Ismail Khan from 80 kilometeres to just 15 kilometers. but also provide. The bridge will also be connected with Dera Ismail Khan-Islamabad motorway.

A public sector university has also been established in Kallur Kot which is a huge development for the people in the surroundings. The establishment of a 132 KV grid station is in process at Kallur Kot, which will improve and enhance overall power system efficiency, reliability, and power supply position in the vicinity of D.I. Khan.

CPEC and Kallur Kot— game changers for Dera Ismail Khan

Owing to the developments being made in the Dera Ismail Khan region, D.I. Khan is ready to become an active focal point for regional trade flows.  The completion of CPEC and the Kallur Kot  Bridge shall prove to be highly impactful for the overall economic and financial prosperity of Dera Ismail Khan New City.

CPEC western route will prove to be the harbinger of economic prosperity in the region. This 3000 KM sea-and land-based corridor shall reap myriad of benefits for both China and Pakistan.  Great economic incentives and increased regional consolidation shall be possible through the building of networks, which will result in increased connectivity and provide opportunities for partnerships. The network, stretching from the Silk route shall cover countries like Egypt and the Middle East, European countries, and a few critical areas of Eurasia. The Karakoram highway, which has symbolic and strategic value for Pakistan, shall make the uplift of the underdeveloped areas of Balochistan and Khyber Pakhtunkhwa possible.

Mobilization of these networks, such as the Kallur Kot bridge shall bring about economic boon through enhanced regional connectivity, dynamic investment opportunities, financial, agricultural industrial cooperation, socio-economic development, tourism expansion, educational linkages, human resource development, immense job opportunities, improved security, and poverty alleviation. Since Dera Ismail Khan New City lies in the trajectory of this multi-billion-dollar project, it is all set to become the upcoming economic hub of the region!

Having detailed what game-changers both the CPEC and the Kallur Kot bridge shall be for DI Khan, the Saif Group of Companies is actively contributing to the progress of the region through its latest project called “D.I Khan New City”.

D. I. Khan New City office

Established in the 1920’s by Khan Faizullah Khan, a man with a vision to improve the lives of the people, Saif Group has been delivering successful ventures across the country for years. Driven by the passion to innovate and excel, the mission of the founder has been materialized by the many successful ventures of the company such as Eighteen, Mobilink, Transworld, Kulsoom International Hospital and Saif Energy to name a few.

Having pioneered sound partnerships and the highest professional standards through generations, the company is now set to reach new heights with DI Khan New City. This new state-of-the-art real estate project aims to make dreams of luxury living a reality. Equipped with modern facilities and backed by a long-standing legacy of Saif Group’s success, D.I Khan New City is bound to become the ideal and highly sought-after residential area of the city.

Determining safe investment opportunities in Pakistan

Determining safe investment opportunities in Pakistan 1440 625 D. I. Khan New City

Investment is an ideal way to amass wealth over time. There are a multitude of investment options available for potential investors, with varying degrees of risk ranging from safe lower return assets ones to riskier, high-return opportunities. Therefore, it is imperative to assess the overall advantages and risks involved in each investment opportunity, to make a sensible decision and determine whether it aligns with your overall financial goals.  Investment opportunities in Pakistan include real estate investment, investment in stocks, investment in gold, investment in Forex, bonds, mutual funds etc.

Why are investments important?

Fortunately, one does not have to possess heaps of cash to invest. A safe financial future and a comfortable life in the long term are guaranteed with the right investments, especially in times of political instability, economic volatility, and unforeseen incidents such as the recent COVID-19 pandemic.

In Pakistan, the economy is suffering from a staggering rate of inflation, which touched the highest-ever rate of 24.9% in July 2022, due to which the purchasing power of people continued to decrease. In such circumstances, investing is the wisest option to not only retain the value of your money, but also to multiply it, and fulfill your financial targets. However, there are several factors to consider while making investment decisions, such as:

 

  • Risk tolerance: An investor with a high-risk tolerance is willing to endure loss to get potentially better results in the long term. Low-risk investors make investments which maintain their original investments.
  • Timely information: Background knowledge about investment plays a pivotal role in investment decisions. Saving accounts and certificates of deposit (CD) don’t require much knowledge, however, products such as stocks, require ample knowledge about the company, the product portfolio, the industry, the company’s financials, the competitors, etc.
  • Time horizon: Investments must resonate with the investor’s time horizon. Shorter time horizons demand safer investments with a low-risk factor. Longer time horizons involve aggressive, riskier investments.
  • Amount to be invested: Often, it is not prudent to invest all your money in a single place. Investments should be made in several diverse industries to ensure safety and higher chances of gaining maximum returns.

Once all these factors have been considered, it is time to invest! Listed below are the top high-return investment opportunities in Pakistan which are relatively safer involving lower risk levels:

 

 1. Real Estate

Real estate has proved to be a lucrative sector for investment in Pakistan. The real estate boom started in 2005 and has continued to bloom to date. The advantages of investing in real estate include passive income, stable cash flow, tax advantages, increase in property value etc. The government has introduced various incentives in recent years for both citizens and overseas Pakistanis which has opened new opportunities to expand their assets.

 

With so many projects coming up one wonders which one is a safe and productive investment.

Determining safe investment opportunities in Pakistan
D.I. khan New City presents a great opportunity for investment.

One such safe investment option is D.I Khan New City by Saif Group of Companies. Being one of the leading industrial and service conglomerates in Pakistan, Saif Group carries its legacy since the last 100 years. The initiatives taken by the founder of Saif Group- Khan Faizullah Khan have been raised to higher levels by the next generation of Saifullahs.

JK&S Global Developers (Pvt) Ltd, is a rapidly growing real estate development company of the Saif Group, a highly reputable and revered business house with an extensive history of delivering successful projects across Pakistan. Some highly successful endeavors by Saif Group include Mobilink, Transworld, Softech System Pvt Ltd, Kulsoom International Healthcare, and Eighteen Real Estate to name a few.

 

 2. Forex trading

Forex trading is the trading of one currency with another. It is a simple and convenient investment, requiring only that the investor be up to speed with the latest currency trends and financial developments.

 

 3. Stock

Another good option to invest is in stocks. Pakistan’s stock market recently earned its highest profits in 10 years, with a total of 178.40 billion shares valued at PKR 5.00 trillion or USD 24.21 Billion collectively. Although a bit risky, stocks yield a higher return on investment. If you are unfamiliar with how the stock market operates, stockbrokers can be hired for assistance.

Some stock options by Saif Group of Companies include Kohat textile Mills Ltd, Saif Textile Mills Ltd, Saif Energy Ltd etc.

 

 4. Government/treasury bonds

Treasury bonds yield a fixed rate of interest which is paid to the investor till the bond reaches maturity. The Pakistani government issues bonds starting as low as Rs 100 with a yield rate of 13.271%. Due to the government’s involvement, there is little risk in the payout and returns. The bonds can easily be turned into cash whenever the investor pleases.

 

 5. Mutual funds

Mutual funds consist of a company which pools together money from various investors and invests it in securities such as stocks, bonds, and short-term debt. The company charges a minimal fee for managing the investors’ pool of equities. Over time, all investors are benefited when the profit is multiplied, and the risk is lowered significantly due to the mutual pool.

 

 6. Food and beverage industry

Investing in franchises and food chains has proven to be an extremely profitable investment during the last few years. Nonetheless, a particular skillset is integral to ensure success when partaking in such ventures.

All in all, there are a plethora of investment opportunities in Pakistan. While some involve low levels of risk, others entail higher levels of risk. The return on investment differs according to the nature of the investment as well. It is integral to consider the aforementioned factors in the article before choosing which type of investment would be most suited to your long-term financial goal of making a safe investment with high returns in Pakistan.

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.

Grand Jamia Mosque at D. I. Khan New City

Grand Jamia Mosque at D. I. Khan New City

Grand Jamia Mosque at D. I. Khan New City 803 536 D. I. Khan New City

Grand Jamia Mosque in the center of D. I. Khan new city will be built on the historical Turkish architecture of Süleymaniye Mosque. D. I. Khan New City will have a central Grand Mosque, which will be strategically located in the center of the city for ease of access and beauty. The indigenous Architecture will be woven in entirely local materials, reflecting the true essence of Turkish Islamic architecture with a rich blend of modern elements.

Brief History of Süleymaniye Mosque:

Turkish architecture is renowned for making architecture marvels in the prime era of Ottomans, one of them is Süleymaniye Mosque. Turkish Architecture Mosque interior is lined up with repeating rectangular tiles with stencil-like floral patterns. The Grand Mosque in New City is an inspiration from such a mesmerizing and beautiful Süleymaniye Mosque in Turkey. It will be a landmark and its design has been inspired by Turkish Ottoman Architecture.

Interior of the Suleiman Mosque (Suleymaniye Camii), grand 16th-century mosque in Istanbul , Turkey

Tourists Attraction in Pakistan

Grand Jamia Mosque will be a go to ‘tourist attraction’ for people across Pakistan & from around the world. The Idea behind is to build monument and will be a great tourist attraction. The new city will be the driving factor for destination development in Pakistan.

The residential city will transform societies and rural economies of the region. The new city will be comprised of Leisure and tourism facilities which will impact the surrounding. This will upgrade the living standards of the region to an International standard. The new city offers endless opportunity to enjoy the living standards with modern crown facilities.

Separate Mosques for each Block at D. I. Khan New City

There are also other prayer areas planned in the city for convenience of our residents. D. I. Khan New City is planned into different blocks called residentials, overseas residentials, commercial, Farm Houses where we have separate mosque as well for each block in D. I. Khan New City.

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 plots booking or more information about project contact us our WhatsApp no. +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.