IS PAKISTAN’S REAL ESTATE MARKET COLLAPSING? a question echoing throughout real estate corridor as market is going through a real rough patch in recent days .Over-active NAB raising flags for big real estate Tycoons every day. Multiple well known societies are under imminent NAB investigation. Flagship projects of Bahria Town group are under threat. Paragon Society management is under NAB custody as we write, facing strict QA session with NAB officials. In a short press release, NAB stated that 70% societies in Gwadar are fraud.
Few months back, MDA (Multan Development Authority) declared almost 85% of Multan housing Societies fake, announcement released on MDA official website when millions already shifted from ordinary people pockets into society management accounts.Wapda Town Phase-III, DHA city , DHA valley , Eden group projects are few key projects which came under NAB investigation few year ago and still their status is under doubt. In latest development, Officials of the LDA Metropolitan Planning Wing and Directorate of Estate Management Private Housing Schemes conducted raids on Raiwind and Grand Trunk Road areas in the provincial capital. The LDA officials sealed offices of Al-Kabir Town Phase-II, Dream Housing Scheme, Royal Enclave, Mehr Garden, Al-Hadi Town Phase-II, Al-Ghani Phase-III, Green Land, Alrahim Phase-IV and Metro City (Sector C and D). Four more housing scheme along Ferozepur Road, including Haideri Homes, Al-Haram Garden, Gulberg Town and Sun City were raided with their offices sealed.
Who knows future of disputed societies and prices of land in disputed areas are stagnant and people who invested their valued money years ago, still looking for their original amount which value nothing in comparison with investing years (Thanks to ever rising inflation in Pakistan).In past, whether it is LDA or MDA or KDA, it was believed that giving ads in newspapers and posting details of illegal housing schemes on its website was enough. However, in wake of recent wave about illegal lands announcement and apex court order, it seems that extra steps are necessary to safeguard investors from losing their money into fraud projects.
Where things are heading in most lucrative and loved area of investment in Pakistan in future? I must Say Nowhere. As societies going down are not unknown projects, these projects are once trusted & loved by investors for many past years, especially Bahria Projects, once enjoyed status of first choice for expats area of land investment In Pakistan.
One must confess here that high land price is no indicator of any country’s progress. In land investment money is out from ordinary pockets and it travel right into few real estate groups. No employment or job opportunities is created. It is no good sign in any economic term but happened on big scale due to few factors 1) it is a safe investment and appreciation of money was inevitable 2) One of ways to counter inflation in Halal way 3) Fear of failure in business investment etc often compel us to keep it safe in lands purchase.
As things are progressing, many people stopped putting their money in real estate business anymore and it is nowhere an option to keep your money safe. Many thinking of investing their money into different business options which will eventually benefit people on large scale.