‘World is conquered by sword but ruled by pen. No nation can survive without justice’.
Honorable SUPREME COURT OF PAKISTAN has promulgated its decision about Panama Case and everyone kens the outcome. We just need to discuss the impact of Panama case on real estate sector.
Crackdown on black money..
Panama case decision has loudly promulgated the direction of Pakistan as a corruption free nation. What we will visually perceive in the coming day or weeks is the terminus of plea bargain culture and crack down on black money. Now onward, no one will be able to park black money in real estate sector. The nation is reluctantly intolerant now, people with ebony mazuma can buy luxury properties but veracious tax payers are unable to buy even minuscule houses.
Property prices will fall..
The most immensely colossal effect of Panama case will be on property prices. Everyone kens that property prices were crashing in Pakistan after budget 2016. Prices just ceased declining after the exordium of property tax amnesty scheme. Now crackdown on the black money is evident, so who will dare to buy property with black money? In the absence of ebony mazuma, property prices will crash.
Genuine home buyers are at advantage..
Genuine home buyers were coerced away from the property market due to anomalously high property prices. Now due to crackdown on black money, property prices will fall. This will be the time when genuine home buyers will be able to buy properties on affordable prices. But genuine buyers have to wait few months as price drop will take some time.
Terminus of SATTA culture..
Pakistan property market was high jacked by land mafia. Land mafia was the main reason behind eccentrically high property prices in Pakistan. But now property prices will be dictated by the genuine home buyers with much less buying puissance. In other words, property prices will be now dictated by authentic demand rather than artificial demand due to influx of black money.
Frugal properties will be price crash resilient..
Target of black money in the top societies with extravagant properties not the minuscule or frugal properties. Frugal properties always have high demand as genuine home buyers purchase these properties for living. Property worth 10 million or less will be price crash resilient. In short, luxury property price will fall. Prices will additionally fall in societies where notional theorization is high.