Capt Sb will give you his own views but I will say this, market is going very well right now. # of daily transactions is close to 100, lots of deals are being made. However, market does slow down in early July because of budget discussions but prices usually remain same and pick up after budget is approved. So far budget seems construction-friendly and it is expected amnesty will be extended as finance minister has promised it will be.

I am sure you are asking this after watching a video from a certain someone on youtube. They have already deleted that video because it seemed very fishy that they were positive about market a week earlier and now suddenly very negative. Either they are stupid or purposely manipulating market for personal benefit. Let me tell you, that FBR suggestion they mentioned in video will not be approved because government will not let the construction industry tank this year otherwise their growth and economic targets will not be met. Best advice would be to wait after budget approval before doing any buying/selling in my view. I am an investor myself and I will be holding no matter what because I 100% know government will not do anything to hurt construction industry for this financial year.

Government’s view of economy this year is to produce high growth mainly through construction, industries and agriculture. This will allow them to meet high GDP growth targets. They will not do anything that hurts either three of these things so I have no doubt that prices will slowly go up for this year.

Who knows if you are fishy,  stupid and purposely manipulating the market for personal benefit instead??

There does not seem any rationale behind what you had stated above blindly that I will keep going up while not looking at huge taxes (up to 35 % +Treatment as business income) in finance bill 2021.

The construction sector is not linked to investment in empty plot trading.

If the land prices drop it will complement the construction sector more and more so don’t understand how reduced or correct and realistic land prices could slow down the construction sector??.. Totally nonsense and this shows how for personal benefit, people interpret and dream things in their own way.

All these amnesties were to facilitate the crocks sitting as policy-maker who always need a window of opportunity for a year or two after every few years to white all ill-gotten money. Once they get it done policy reverses in the name of taxes or compliance for few years,  they then again propose such amnesties after few years once they collect more stolen money. There is the real beneficiary – you might be one of those too. It always operates in the same cycle if you try to study history and who knows better than investors.???

For reference to those who might be misled by the post telling that there are no change in the tax, or its mere 5% etc.

if  Gain is above 5 million, it will be taxed under normal tax regime and profit will be clubbed with any other income such as salary or business – hence it could move to the highest tax slab that can go to 35% + provincial taxes in addition to that. Also in this case any percentage is irrelevant whatsoever.

2ndly, If the gain is less than 5 million, the tax will rate will be a flat 5% on the gain under section 237 (removing earlier 2.5% in year 5 of selling) but taking into account the year of selling,

3rdly -where the person is an investor (recorded to be repeated selling), the gain will be treated as business income.

Above is  not my personal interpretation but reference is given below for people to read

link to Act 2021

https://www.fbr.gov.pk/Budget2021-22/FinanceBill/Finance-Bill-Final-2021.pdf

Abstract below from act 2021 -page 48 onward.

Explanation.- For removal of doubt, it is clarified that where a person is habitually engaged in transactions of sale and purchase of immovable property or such sale and purchase
is adventure in the nature of trade and business, the provisions of this sub-section shall not apply and the income from such transactions shall be chargeable under the head Income from Business.”

“Provided that where the taxable gain on disposal of immoveable property exceeds five million rupees, it shall be chargeable to tax under sub-section (1) of this section (normal tax regime) and provisions of sub-section (3) shall not apply. However, the taxable gain shall be calculated while taking into consideration the benefit of holding period as provided in sub-section (3A)

Hope this will educate people truthfully despite what will be future price trends or if it’s approved or will be approved until 30 June etc.

The market is in an uptrend cycle right now, these cycles may get triggered due to reasons such as amnesty but they also have a logical background.

In short the real estate market will remain stable with certain small corrections. As for budget and its impact on real estate, the income tax has already been retracted by Govt so  I will hold back any comments till it is finally approved.

Jazak Allah

@yasim You are once again misinterpreting all those proposals. I will clarify it to you and why it will have an impact on construction/builders if implemented.

1. If gains are below 5 million, flat 5% capital gains tax. This is mostly good because previously tax slabs were 10%, 7.5% and 5% for sale of property 1-3 years after buying. So only people selling in 4th year will be at a small loss. Most property purchasers will be at a gain here so this is in fact a positive.
2. If gains are above 5 million, normal tax slabs will apply (10%, 7.5%, 5% and 2.5%). This is normal, no real change.
3. If you are a regular buyer and seller of property meaning if it is your main business or source of income, then you will be charged 20% income tax. This means builders and investors who regularly purchase and sell immovable properties will be charged far more tax now. This is clearly a negative and will hurt construction which is why I expect it will be omitted.

That is as clear as it can be. You are exaggerating how bad these changes are. The changes to CGT are normal and in fact a more positive thing. The income tax part will hurt builders mostly and large investors (who buy and sell tens of properties yearly). Wait till budget is approved and becomes a bill and then we can come back and debate it. Even if these proposals are approved (I don’t believe income tax part will be), even then market won’t crash as some are saying.

Weldone Mr. Bukhari, readers would know who is misinterpreting and exaggerating but I wont be judgmental like you and assume you are yet learning difference in 5 million and 50 million.

CGT and treatment gain as business income where invenstor sell in short period of time is perfect policy to encourage construction and generate more jobs. No one would want to pay huge tax on trading plots but construct house to sell will only be option. If one can hold it for longer time, Govt. wont have issue. I believe its very thoughtful policy to tax looters who are making million and paying penuats as tax. It ll prove a big push to houses construction industry. You dont have to agree.

It looks like the guy like QasimBukhari  either works for the same estate or at least for the same market from his enthusiasm and activisim where he is replying everyone on earlier post as well, on behalf of imlaak. Its always trickly to assess vested interest of people on these forums but still useful to know different opinions while one remain be vigilant and use his own mind and take take his person motive and circumtances into account . Lastly I must ackowledge that Capt. Shahnaz is not a typical Estate Dealer but a valuable, much needed consultant in real estate who knows to bring balance between his business interst and fairness to client. So he can go long way.  Thanks

Dear Ahmed,

I would like to add something here for what is happening right now in Dha Lahore Market,

Yes you are quite right that DHA Lahore Real estate market has slowed down and the general sentiment of buyer is fearful right now.

Prices have gone so high and most of the people who are buyers right now are being speculated by the high prices that are changing in days.

Those who were not touching prism at 1.5 crores back 12 months back are now buyers at 2.5 and thats because being emotionally attached to the market, fear of missing out.

So my opinion about DHA lahore Real estate market is to sell right, i wont be a buyer at these prices.

Thankyou.

Please read the above article for more updates.

Dear Ahmed,

I would like to add something here for what is happening right now in Dha Lahore Market,

Yes you are quite right that DHA Lahore Real estate market has slowed down and the general sentiment of buyer is fearful right now.

Prices have gone so high and most of the people who are buyers right now are being speculated by the high prices that are changing in days.

Those who were not touching prism at 1.5 crores back 12 months back are now buyers at 2.5 and thats because being emotionally attached to the market, fear of missing out.

So my opinion about DHA lahore Real estate market is to sell right, i wont be a buyer at these prices.

Thankyou.

Please read the above article for more updates.

Yasim, that was a typo. I meant to write 50 lac but I have edited my response.

Noor, first of all I don’t work for any estate agency. If I did, I would be promoting it but I am just a regular user like you here. I like to help people and stop misinformation. Obviously everyone has their own interests but I have laid out the law changes very clearly in the post above, it is as simple as it gets.

And obviously I have provided my opinion with it. It is quite clear and logical that the government is supporting construction industry so it won’t pass any laws that will hurt it in the short-term. You can believe whatever you want with your ‘agendas’.

Not sure why this Bukhari is so offended for everyting! Fighting some personal war…?

Agreed with Husnain views. Perfectly narrated the real situation.

Yes, he is so panic for some reason. Look how he did post 50 million as threshold for CGT and imagine if it won’t be raised as untrue, how misleading that could be.

Also if a person like him is in post to provide consultancy or services to public at large – Godforbid, his small typo will make 50 Lak to 5 Cror so people should trust his  claims at their own risk.

You both are pathetic. I am not offended at all firstly and secondly I am not panicing. You both are living in a dream trying to ignore reality.

Yasim, it is a very small mistake of zeros, anyone could have made it. As for Noor, Husnain made a prediction saying market will see a correction soon. I have no complaints about that and no doubt about it, everyone knows a correction is coming but what I’m saying is that the correction won’t be coming this year or until June 2022. Government’s whole GDP growth is riding on the construction industry so for the next financial year, they will do nothing to harm it. People like you have been saying from last December that ‘market is crashing, market will crash’ but so far in the last six months, the market has slowly grown. You can either accept reality or suffer in the face of your ignorance for another year. Enjoy.

Dear Bukhari, please don’t drive nuts child and grow up a bit. Participate in the discussion instead of being idiot. You were of opinion that market will go up, now stating that ‘we all know that there will be correction’ etc. but it will happen per you date. don’t understand what was point for all your RANDI RONA then? Ahmed would be regretting to ask the question and would not be expecting that a DEWANA like you is out there wandering in the market and could jump in uninvitedly 🙂

The budget bill has been passed now and your prediction didn’t work BABA RAMDEV BUKHARI. so please tell bit about near future please?

Also please don’t forget to read below by someone with full senses

I think he is very badly effected by some video he has watched that he referred in his very first post.

Ahmed, that video has already been deleted, the creator of that video has realised his mistakes.

Dear Noor,

Keep resorting to insults, I will not go down to your level. Keep waiting for a year so that you can finally invest your money somewhere while everyone else enjoys their nice profits. Also, yes the budget has been passed but there were many changes to clauses made by PTI govt. I wasn’t able to watch all of the session live so I didn’t get to see what discussions were made about real estate (they reviewed every change clause by clause). I’ll wait for FBR to upload the final Finance Act before making any comments. I’m not sure why you’re jumping up and down because nothing is confirmed as of yet.

And I’ve read that article, a correction of 50% is impossible and in no way will happen. Whenever a major correction does occur (and it won’t occur till 2022 June), it’ll be 15-25%. Prices won’t suddenly go down to pre-corona levels because genuine price growth has been made which wasn’t occurring from 2016-early 2020 due to stagnant market. I hope you come to face reality as it is. Ignorance, in this case, is not blissful.

Update: I just finished watching some budget highlights, got around to when amendments made by treasury. When they discussed real estate section 37, they said amendments will be made to reduce CGT rates. I will wait for FBR to upload finance act so specifics can be identified.

Because everyone who has been spreading rumours of market crash has watched that video. Don’t worry, you can watch that person’s latest video: lahore real estate – YouTube . They mention exactly what I said that was discussed in budget session, CGT rates have been reduced.

Dear QBukhari,

Alhtough Its useless to argue after looking at your psychological condition, where you are flighting with everyone.  However, can I ask why are you so against paying a proposed tax against your earning from a huge profit and gain?  Can you do that in UK or USA – can you imagine a tax of 2 to 3 % against 5 to 10 million gain anywhere in world against your investment? They charge a flat 20% tax on any second property whatsoever plus gains are club with other earnings. Is not this unfair to ordinary people in this country who pay huge taxes while people like you milking it with both hands and still crying and abusing all around. Why are you so stuborn to think that high land value will help construction sector? what is rationale? Also, market won’t crash but market will and should return to actuall and correct values to welfare of ordinary people. Can you explain what make you think that this 100-150% increase is genuine. Has an ordinary people got 150% increase in his salary and inflation gone down? What dollar rate has to do with land in Pakistan and local economy. This is all crap and reality is that current increase in land value is 100% manupolation and artificition and unsustainable. This is on correction and its written on wall. but people like you are blind in greed of their personal gain and not sleeping for ages. I’m not an investor not in favour of dumping money in land trading- to me its for either bad money(haram) or some completely passive persons (with exception) who have no potential in life to create employment by being progressive or dumb. I’m in my early 60s, running educational institutes with no greed and vested interest but concerned about ordinary, middle class who are actually feeding looters of this country who are now making these middle class a scapgoat to earn through manupoling with land values and keep them homeless. So don’t be panic and don’t turn all for your gain.