A very difficult time is ahead for Pakistan. Pakistan’s foreign reserves fell to a four-year lowest of $6.7 billion at the end of 2022, hardly enough to fund monthly imports. The Pakistani rupee, which was at 176 rupees against the US dollar in January 2022, concluded the year worth 226 rupees, a 28% depreciation. And the time when this blog was written, 1 USD was worth almost 264 PKR in the open market, and World Bank predicted Pakitan’s GDP growth of even less than 2% for the year 2023.
All the economical and political turmoil is affecting all the masses in the country as well as every industry of the country, including real estate. Pakistan’s economics and real estate are directly related, and every shift in the economy affects the construction industry and has a trickle-down effect on around 200 industries associated with land and construction.
Considering the circumstances, it is expected that real estate prices will also soar in the upcoming months. Construction materials, i.e., cement, steel, etc., are going up every other day, leaving developers with no choice but to increase the prices of the properties, either commercial or residential, because now construction costs a lot more than before.
The PKR roughly devalued 30% in the past year; if you had 100,000 in cash, those are still 100,000 physically, but in worth, this money is equivalent to 70,000 PKR if we compared to the last year. And for the next few months, there is no end in sight for this downfall. So, if you have any savings, this is the perfect time to invest in real estate. Investing in real estate now can save your hard-earned money from devaluation, and you can also build an asset growing in worth over time instead of losing its value to inflation.