Current Real estate market trends.

 

Given the unabashed economic downturn in the country. The government has imposed several new taxes in a bid to push the economy of the country. Several new taxes have been introduced which will have multifold implications. The real estate sector has no exception, the tax regime of this sector has been transformed and some new taxes in the real estate sector have also been imposed. Further, existing taxes have also been increased.

The federal government imposed new taxes of 440 Billion rupees with a focus on the real estate sector in the recent budget. With the introduction of “Deem Tax” that is on unused properties and additional properties, Custom Duties, Sales Tax, and Federal Excise duties have also been escalated. Rs 34 Billion on Custom duties, Rs 90 Billion on Sales tax and Federal Excise Duty, and Rs 316 Billion will be collected in this fiscal year. These taxes might be useful to sustain the dwindling economy, but their implications on the real estate sector and other related sectors will be dreadful. These taxes will not only disturb the real estate sector but will also badly affect the construction sector. And if these two sectors are disturbed, several other related sectors will be affected and then unemployment will surge.

First of all, this hike in gain tax, purchase tax, and transfer taxes will discourage investors and will decrease their confidence of investors. So, if investors stop investing in the real estate sector, this growing sector could destroy. Because the real estate sector works only if investors invest in this sector. So, with the cease in investment, builders and constructors might discourage and stop working on their projects. This development will increase unemployment in the country and a number of laborers will not have work to do. For example, in Nova CityPeshawar, investors from all across the country and overseas are taking a keen interest but this current situation might discourage them.

Further, non-filers will have to suffer the most but filers will also face troubles in buying or selling a property. This will adversely impact this sector. Given the current economic situation and unprecedented surge in inflation which have already disturbed the lives of the populace, these taxes will not motivate people to buy property.

In addition to these, a large number of overseas Pakistani invest in the real estate sector. So, this trend brings remittances to the country and also supports the economy of the country. In the last few months, Pakistan has been receiving over 3 billion dollars on monthly basis. But these taxes will also demotivate and discourage foreign investors which means a decrease in remittances to the country as foreign investors are interested in Nova City Phase 1 but now there might be a lack of investment.

It is understood that our country needs some crucial decision-making for the larger benefit and long-term advantages. But it does not mean that we should discourage investment in the country because the private sector is playing a pivotal role in the economy and especially for the last few years, the real estate sector has been playing an important role in the country. Not only does it generate and rotate wealth but it also creates jobs and business opportunities. Further, filers should have been given a special advantage as their investment is directly beneficial for the country.

Record Marketing has taken up this opportunity to guide and provide you with the finest information about Nova City  Peshawar division in a bid to ameliorate the standard of living in our country.