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DHA LAHORE REAL ESTATE MARKET OVERVIEW MAY-JUNE

Posted by HusnainAshraf on May 25, 2021
2 Comments

For time and again I have been emphasizing that DHA Lahore Real estate market is being speculated by Amnesty scheme introduction by Pakistan government to collect taxes by more money flow into this market whether it may be black money or ex-pats buying for their homes who lost their businesses and jobs due to the Pandemic.

Amnesty scheme has given this market a parabolic run to the upside but there was also a genuine interest as well by the expats and smart money who prevented their money from this never-ending inflation each day.

What goes up must come down is a general phenomenon of almost every market while it makes me confident that when the market often shows a very sharp upside without any basic fundamental reason and overall country’s economic strength it usually dumps back to its previous yearly highs. To be honest my opinion about the market is often opposite to the general herd or real estate consultants because Being on Imlaak I have always followed the principles of my mentor Captain Shahnawaz which is to let the customer know about the actual situation of the market rather than trapping them into speculative behavior of the market.

Imlaak.com has always been keen on making well-informed decisions based on research and development for which we always take into account many different things on which the Real estate market feeds on, the very basic reason of Pakistan Real estate market speculative behavior is the dollar index and we have been following dollar index for many years and that’s why our predictions about DHA Lahore real estate market has always been on target.

So lets see what Dollar index is predicting right now.

Dollar Currency Index breaking down

Well, the dollar is in the favor of the Real estate market in Pakistan because what is the chart telling it’s a huge weakness in the dollar which means that people would not like to hold the dollar and everything that is correlated to the dollar will appreciate whether it be precious metals or Real estate market but on the other side where will be a stop?

The rising inflation and all the economic factors make me curious that there is more upside action coming to the real estate market but there is only one drawback for which I think buyers should take into account and that is no further amnesty scheme extension which poses a huge risk if buying the very top of the market so be very cautious. Buy into less risky areas like High Rise Buildings i.e Sixty6 Gulberg or LAHORE SMART CITY.

An artificially pumped market is often very risky because it crashes badly and on the other side a natural growth stays longer and poses less risk for dumps.

So lets understand what is the difference in natural growth and Artificial growth.

Gold Chart explaining the impulsive run & correction.

Now let me explain the Gold chart for the general understanding of what impulsive runs in any market can bring sharp corrections to the downside anytime.

When you look at the chart you can clearly see that while gold was having a healthy upside behavior but suddenly from 2007 end implosive move got the attraction of main players around the globe so it went from nearly 500$ to almost 1900$ in just 4 years which is almost 3X and then after that sharp impulsive move Gold almost made a correction to 1000$ in next 5 years.

The common behavior of all markets correlate with each other but they just differ in time because some markets are volatile and they correct sharply while others take time but they often resemble in behavior.

I personally feel that Dha lahore real estate market might not have seen the top yet but it is real close and can take a while but the correction will come so the smart investor will always make smart decisions and will be the only seller while everyone is buying.

For expert opinion for buying and selling In real estate specially In DHA lahore you can call:

Husnain Ashraf 0300- 2049966

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Arhum

Totally agree that correction will come, no doubt. But it will be delayed by year or so because it seems very likely that government will extend amnesty scheme. Comments from Mr Shaukat Tarin and Imran Khan on IMF deal as well as government raising GDP growth targets indicates they will continue giving relief to construction sector to meet their targets.

Also note, government is earning more tax revenue from real estate right now than ever before so their taxation has also improved within the last year due to amnesty scheme. But yes, whenever amnesty does finish, I believe market will take correction.

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