ABAD and builders are at advantage
Association of Builders and Developers of Pakistan (ABAD) and builders are at advantage as construction taxes imposed in the last budget have been withdrawn. In the last budget construction taxes were imposed according to different cities and property types. These taxes resulted in less tax accumulation and now regime has withdrawn these taxes to boost the construction sector.
Individual home builder is at disadvantage
Taxes on cement and steel have been incremented. The regime has incremented the Federal Excise Obligation (VICTUALED) on cement from Rs 1 Rupee per kg to Rs 1.25 rupee. Taxes on steel have been incremented from 9% to 10.5%. This will ultimately increase the domicile construction cost.
Effects of budget 2017-18 on property market; Low sale volume and low income for estate agents
Capital Gain Tax has been incremented in the budget 2017-18. For non-filer CGT is 20% and for filer its 15%. Due to the incrementation of CGT, property notional theorization will decrement and this will withal decrease the volume of authentic estate transactions. Authentic estate agents will optically discern their income slashed which is deplorable news as more than 30% estate agencies have already closed their offices due to low transactions.
Some price fall is expected for genuine buyers
Property price is directly cognate to the volume of authentic estate transactions. Property price increases when transactions are high and falls when transactions are low. Due to low transactions, 20-30% price fall is expected. This is great news for the genuine home buyers who are unable to buy properties due to aberrantly high prices.
Approbation of authentic estate developments from SECP; Security and Exchange Commission of Pakistan (SECP)
Pakistanis are always worried about property frauds & scams. To secure the investments of Pakistanis, regime has sanctioned Security and Exchange Commission of Pakistan (SECP) to monitor authentic estate sector. Now onward, no developer or builder can accumulate advance payment unless society is approved from SECP. This is indeed the great step to magnetize astronomically immense investment in authentic estate sector and to secure hard earned money of Pakistanis.