Impact of Corona Virus on Bahria Town Property Prices
Coronavirus, COVID-19, has hit the world with a dramatic force. It has badly affected all the industries, including real estate. The world-wide lockdown, limitations on traveling, quarantine, and the horror of deaths have shown its negative effect on Pakistan’s economy. The real estate sector, which was already disturbed has hit rock bottom in early 2020. The construction relief package’s announcement has appeared as the game-changer for the real estate sector. However, we cannot forget the adverse effects of COVID-19 on real estate.
Now we have entered 2021 with lots of hopes and positive energy. But still, the world has failed to control this deadly virus completely. This virus will continue affecting directly or indirectly all the industries of Pakistan.
The downfall of Property Prices and Overseas Investment
The one and the foremost effect of COVID-19 on the real estate sector is the downfall of property prices. The prices of property, including the properties of Bahria town, have fallen. There were more sellers in the market as compared to buyers.
Also, the ban on global traveling has restricted Overseas Pakistanis from investment. Undoubtedly, Overseas investment is a big support to Pakistan’s real estate and the overall economy. So, that was also a reason behind the decreasing prices of property in the country.
COVID-19 and Construction Relief Package
To stabilize the condition of real estate and construction sectors, PM Imran Khan has presented a construction relief package. It was a big incentive package for the construction industry that also includes billions of rupees’ subsidies.
One of the biggest facilities provided in this package was those who invest in the sector will not be asked questions about their income source. The withholding tax on construction is lifted from all sectors, except steel and cement. Also, the fixed tax on the construction sector was introduced.
The announcement of this incentive package has worked greatly as per the expectations. More and more investors have invested their amounts in the properties countrywide. Moreover, hundreds of new projects are launched that are developing at the fastest speed.
Not only this, but this package is also a reason behind the opening of hundreds of job opportunities.
To get maximum benefits from this package, Bahria Town itself and the authorized dealers of Bahria Town have launched several new property deals.
Undoubtedly, this construction package has appeared as a game-changer for the real estate sector in 2020. By keeping the success and need for this incentive package, PM Imran Khan has extended the Fixed Tax Regime Scheme for the construction sector till December 31, 2021.
Coronavirus and Real Estate Sector in 2021
The second wave of COVID-19 has started showing its worst effects. But still, we are in full hope that the year 2021 will be a great year for the real estate sector. The vaccine for the treatment of COVID-19 is approved and is now easily available. However, we don’t really yet know what’s going to happen. The future will depend on how much social mixing resumes and what kind of prevention we do. Also, the lockdowns are easing in many countries, leading some people to assume that the pandemic is ending.
According to the property experts, property prices will continue increasing till the first four to six months of 2021. There are several new and exciting upcoming property deals. Both investors and buyers will get more and more investment opportunities in the real estate and construction industry. So, if you are planning to invest in the real estate sector to earn profitable gains, this is the right time.
Do read our detailed blogs on Pakistan Real Estate in 2021