According to many surveys, rates of commercial as well as residential properties of Pakistan have been stagnant for over six years. Because of a lack in demand, most of the housing societies (including Wapda Town, Johar Town, NFC and Safpak society) offer residential and rental properties at affordable prices.

1) High CVT on Property TransfersThe transfer of any kind of property falls under one of the main categories which include surrender, power of attorney, gift, transfer of property to filial, exchange or purchase. This tax is applicable on every residential property equal to more than one kanal, whereas all commercial properties have to pay this tax upon transfer without any exception. This tax is one of the hurdles for buyers interested in investing in Pakistan real estate.

2) High interest on mortgage rates.Developed countries use mortgage rate as a tool to improve their real estate values but in Pakistan mortgage loans are so high that they serve the purpose of repelling investment. With mortgage rate ranging between 15-20%, the rental value of properties has increased 4-6 times. After the 2008 property slump in Pakistan, many investors were declared defaulters. 3) High fear of political instability.The depressing political situation of Pakistan has led to rapid changes in policies. 4) High rate of inflation.Inflation also has its role to play in the adverse conditions of Pakistan real estate. With diminutive incomes and the ever increasing prices, people are having a hard time getting properties on lease.