Bloomberg: Egyptian Billionaire Eyes Further Pakistan Real Estate Projects

[American Pakistani]

The theory behind this kind of foreign investment that supporters give is known as the "trickle down" effect i.e. when foreign investment is made, its effects trickle down to the wider economy in stages. Examples include how Apple manufactures its phones in China. The company benefits due to low wages making its phones more competitive on the world market, the country benefits because of increased employment, which in turn leads to the wages being earned from Apple being spent on Chinese manufactured clothes, which in turn leads to more employment for Chinese people in clothes manufacturing factories, with all parties involved paying a certain level of tax which also benefits the wider economy. Theoretically its a "win win" situation for everyone if implemented correctly.

Don't you think, Apple in China situation is different. Apple export the units manufactured or assembled in China. Apple is earning $$$ from the world in that case while paying employees in China this is not the case for this real estate project.

Obviously some poor Pakistanis will make money, then what, even if they purchase something using that money, half of the stuff is imported in Pakistani markets.

Why do you think Pakistan's loan is building up, reserves are depleted, etc etc?

 

[Indus Pakistan]

I will be seriously looking into this. Islamabad is the only city where I felt safe and the enivironment is great. The location is adjacent to my areas of connectivity. In particular wiuth the sprawling motorway network. And the new international airport in Islamabad. Things look good.

 

[Kambojaric]

Don't you think, Apple in China situation is different. Apple export the units manufactured or assembled in China. Apple is earning $$$ from the world in that case while paying employees in China this is not the case for this real estate project.

Obviously some poor Pakistanis will make money, then what, even if they purchase something using that money, half of the stuff is imported in Pakistani markets.

Why do you think Pakistan's loan is building up, reserves are depleted, etc etc?

It is different to an extent yes. However if we look at the construction industry specifically, cement that is required to build housing will most certainly be domestic (with production capacity increasing at a good pace http://www.apcma.com/data_history.html). Expertise in this field has allowed Pakistani cement players to actually expand their operations abroad as well (http://www.iraq-businessnews.com/2017/08/02/lucky-cement-expansion-to-be-completed-by-nov/). More demand equals to expansion in production capacity = more jobs = more taxes. Further the Pakistani diaspora is huge and is looking to invest in property in Pakistan (especially in gated communities, https://tribune.com.pk/story/151098...ing-property-droves-theres-preference-change/). Meeting their demand boosts employment in the domestic real estate sector (brokers, website developers, lawyers for contracts etc). As said it is a long cycle. However I dont think there is anything negative about foreign investment in a country's real estate sector. In fact it is a huge market in the UK, with Chinese money flooding in (http://uk.businessinsider.com/r-hon...rophy-hunting-in-london-despite-brexit-2017-8).

 

[Kabira]

House prices are going out of reach from public in karachi and it wouldnt increase now. The baloon now is full of air.

Karachi is biggest Pak city and cannot grow in all directions. In coming years prices will keep increasing if people want to live near centre. Islamabad too would eventually run out of space. Next will be Lahore as all these cities don't grow vertical.

 

[AZ1]

Karachi is biggest Pak city and cannot grow in all directions. In coming years prices will keep increasing if people want to live near centre. Islamabad too would eventually run out of space. Next will be Lahore as all these cities don't grow vertical.

People are not looking to live near center because of traffic jam, bad roads even they are moving away from center less crowded good area like bahria town etc. Price will decrease and there should be limit for 120 yard house you can expect it ti be 5 crore. Its 1-2 crore right now for 2 floors.