The real estate sector in Pakistan has always enjoyed the strong confidence of the people, attracting investments, be it in residential or commercial projects.
The sector that once lacked transactional transparency, security, and little to no integration of technology played a major part in discouraging the investors overseas.
However, in recent years, the sector yielded outcomes attracting a positive influx of both national and foreign investments. Notably, a large portion of economic welfare in terms of remittance is generated by the overseas Pakistanis.
So, why is real estate the best investment option for overseas Pakistanis?
Amongst many investment opportunities present, real estate stands out as one of the best options for the overseas Pakistanis to invest in.
Here is why:
Seamless Digital Banking
For Overseas Pakistanis, investing in real estate is a one-time effort, as one does not have to do anything on a day to day basis to gain returns on your investment.
Introducing a new forefront of contactless banking, in collaboration with the State Bank of Pakistan (SBP), the Government of Pakistan unveiled ‘Roshan Digital Accounts’, presenting a digital banking solution for the Overseas Pakistanis. It is an official channel offering ease of payment, investment in the real estate of Pakistan, and attracting investment in Naya Pakistan Certificates (NPCs) that are to be issued very soon by the Government of Pakistan at attractive and risk-free rates. Our esteemed diaspora can enjoy genuine services in their homeland, from any corner of the world.
Any investment opportunity availed will consequently, help earn good returns on the investment.
Safer Investment option
Safe and secure investment options in real estate projects give an investor the confidence to move forward with the investment.
Today, in Pakistan, there are active privatization initiatives and substantial investment opportunities including residential, commercial housing projects and schemes and large infrastructure-related investment projects especially under the China-Pakistan Economic Corridor (CPEC), Ravi Riverfront Urban Development (RRUPD), various Special Economic Zones (SEZs), for the overseas Pakistanis to invest in.
In case of investment, the overseas Pakistanis must research the project holistically, before investing in them. In order to do so, genuine projects are supposed to have approved layout and/or building plans, which are formally approved by the concerned regulatory authorities such as Capital Development Authority (CDA), Lahore Development Authority (LDA), and Karachi Development Authority, etc.
The most popular real estate projects are the ones approved by the apex development authorities mentioned above.
Apart from the governmental schemes, the real estate sector of Pakistan offers significant private investment opportunities for potential investors across the globe.
To name a few, the Imarat Group of Companies offers some of the fastest-selling projects including Florence Galleria, Mall of Arabia, Amazon Outlet Mall, and Golf Floras.
The benefit of investing with private companies is higher Return on Investments (ROIs), fewer regulations, flexible investment plans, and full ownership of the tangible asset.
Due to changing dynamics, the advancement of technological innovations including Proptech and AI ignited the evolution of the ‘start-up ecosystem’ in the country.
Out of the many emerging Proptech platforms, Graana.com has worked its way to the top of the ladder in providing cutting edge Proptech solutions such as – smart listings, virtual tours, digital signage, real-estate market research valuation, and feasibility, smart market value prediction, and more.
All these technological advancements in the real estate industry have made it a very lucrative option for overseas Pakistanis to avail and invest in their home country with peace of mind.
Governmental policies and Relief packages
In order to kick-start the economy after the outbreak of COVID-19, the government unveiled the Construction Relief Package.
Under the relief package, some of the significant initiatives provided were waiving off the withholding tax on materials in the construction sector, and lower sales tax aligned with the provinces, and discarding the required money-trail.
The terms of the package, valid till December 31, 2020, has proved to be a game-changer for the real estate sector.
In addition, the introduction of Roshan Digital Accounts has further enabled the Overseas Pakistanis to invest in residential and commercial real estate and stock exchange, etc. through legal channels.
The minimum period to invest in real estate, set by the SBP is three years. Following the completion of the given period, investors will be able to repatriate the full amount of sale proceeds of the investment in property.
However, in case an investor wants to withdraw before the completion period, they can repatriate funds up to the lower amount of sale proceeds, or the principal investment amount in Pakistani rupee on the date of investment. This blog is originally published here.
Maham is a Content Writer.
She handles marketing communications at Graana.com.