After the property tax amendments made to the Income Tax Ordinance 2001, many anticipated a huge dip in property prices and it was speculated that the property market would lose its energy. This prediction did come true to some extent, however, no severe decreases were seen in prices in either Lahore, Islamabad or Karachi during August 2016. On the other hand, no remarkable upward trends were noticed either, according to the stats shared by Zameen.com, Pakistan's leading real estate website.
Transaction volume dropped to an alarmingly low level with no signs of recovery seen during the month, said a press release issued by the website on Tuesday. Discussing the Lahore market, it said despite a significant lack of investment activity, property prices in Lahore remained stable for the most part. However, no substantial spikes were observed either.
"After the implementation of the new taxes, 65 percent drop has been seen in sale-purchase activity. Prices mostly decreased in the localities that are sought after by investors, however, in localities where the market activity is steered by genuine buyers, prices have remained stable," said Imran Shabbir of Richmoor Real Estate.-PR