2023: The Best Time for Overseas to invest and earn profits!
As the real estate market in Pakistan continues to evolve, there’s no denying that 2023 is a pivotal year for Overseas Pakistanis seeking investment opportunities in this dynamic sector. Let’s check out the reasons why this year presents an ideal window of opportunity for those looking to make smart and rewarding real estate investments.
Foreign Direct Investment (FDI) and Overseas Pakistanis
The Government of Pakistan approved Pakistan Investment Policy (PIP) 2023 to increase both foreign and national investments. Pakistan Investment Policy (PIP) 2023 has been approved on July 7th to seek foreign direct investment (FDI). It gives special rights and protection to foreign investors. This policy allows leasing of land, development of real estate by foreign investors. The minimum equity requirement for foreign investments has been eliminated by the authorities. It means that foreign investors are no longer obligated to invest a specific minimum amount to participate in investments within that jurisdiction. Many foreign investors have been investing in the Real Estate Sector of Pakistan since then. This has increased foreign direct investment (FDI) in the real estate sector. Foreign investors and overseas Pakistanis are eager to invest in the country’s real estate, which is driving growth and stability in the market.
Increasing Demand for Housing & Seller’s Market
Increasing housing demand in Pakistan drives more residential and commercial projects, creating a seller’s market with high profitability. More and more people are moving to cities in Pakistan for better jobs and lives, so they need houses. This ongoing urbanization in Pakistan, where people are moving from rural areas to cities, has created a substantial demand for housing. This surge in urban migration is driven by the promise of better job opportunities and an improved quality of life. As a result, the need for residential properties, such as houses and apartments, is steadily increasing. This trend offers a promising opportunity for Overseas and foreign real estate investors. Investing in housing projects and property developments has the potential to yield attractive returns. The reason for this is that the demand for housing is outstripping the current supply, particularly in major cities like Karachi, Lahore, and Islamabad.
Better Infrastructure and Connectivity
Foreign investors have started considering Pakistan as a favorable investment platform in terms of Real Estate. The country’s real estate sector has shown significant improvement, owing to enhanced infrastructure and connectivity. This takes us to the potential for higher returns on investments. Pakistan’s infrastructure development, which includes the expansion of road networks, transportation systems, and power supply, has improved accessibility to previously underserved areas. Notably, initiatives like the China-Pakistan Economic Corridor (CPEC) have created new opportunities for real estate investment. The establishment of upcoming industrial zones and improved connectivity is driving demand for both residential and commercial spaces. Consequently, 2023: Time For Overseas Pakistanis to invest in Real Estate.
Devaluation Of the Rupee and Its Impact
2023: Time For Overseas Pakistanis to invest in Real Estate because of currency devaluation. The purchasing power of the Pakistani rupee has been declining for many years now with no chance for recourse. This depreciates our currency in relation to gold and foreign currency. This depreciation lowers the purchasing power, making it hard for local buyers to own a property. Thus, if you already have investments in the real estate market, their value will only go up. Renting your property or selling it entirely is yielding more profits than ever. While devaluation under a fixed rate system allows the correction of balance of payments, it can also benefit the economy in the long run.
Shifts in Investment Patterns
Investment patterns in the real estate sector have also undergone shifts due to the current economic situation. Investors have become more cautious and selective in their real estate investments, considering the higher perceived risks associated with the economic downturn. Some investors have shifted their focus from residential properties to commercial real estate or other alternative investment options.
Also Read: Top Real Estate Developers of Pakistan
Thus, 2023 is the best time to invest in Pakistan especially for foreign investors who can avail benefits from the latest change of policies by the government of Pakistan.
