Donald Trump’s Shocking Victory And The Probable Rise of Pakistan’s Construction and Realty Industry
Many are still in the state of shock while others can’t wrap their head around the fact that Americans have chosen Donald Trump as their next President. But the truth is, it has happened and the business tycoon is now all set to move into the White House. So how this is going to affect Pakistan in general, and especially Pakistanis living in the US?
Some are of the view that Trump’s victory will boost property prices in Pakistan because expats are expected to shift their funds back to Pakistan as they did after 9-11. This shift in investment is likely to create newer opportunities. But, others are of the opinion that implicating Trump’s win in the US elections with local realty market may be far-fetched.
Perhaps, it’s too early to draw any conclusions. But, here are few extracts from Trump’s policy on the visa, immigration, and expats that may give you a slight peek into the future revelation.
- Trump’s Take on Visa Policy and Muslim Immigrants
The most controversial remarks about Muslims came from the Republican in December last year, when he called for a ban on Muslims entering the United States after Orlando shooting. This sparked rage among the 1.5 billion followers of Islam around the world. Now that the populist candidate is set to take office in the White House, fear and anxiety have struck the Muslim countries.
Even if some consider it an election rhetoric, it is surely not a rhetoric for Trump’s supporters. It is why Muslim immigrants are anticipating more racism and sterner government policies under Trump’s rule.
Although it may not be a prophetic situation as we saw after 9-11, but 11-9 is likely to make a few Pakistani expats to remember their homeland. Especially if Trump’s fundamental policies reaps positive results, and other developing nations like EU countries may follow suit.
- Is This a Lose-Lose Situation for Pakistani Expats in U.S.A?
Quitting job or winding up a creditworthy business to move to another country is not an easy decision to make, especially when you have a family to take care for. This decision gets even tougher when you have to choose between U.S.A and Pakistan, a country that has an unstable economy. Certainly, you will be anxious, but close analysis will reveal to you it’s not a lose-lose situation to move back to Pakistan.
The latest stats from Zameen.com shows realty prices in three major cities of Pakistan (Lahore, Islamabad, and Karachi) have seen a significant decline during the third quarter of 2016. Back in 2015, things were not the same as the property prices in the three metropolises were relatively on the higher side during the same period.
Investment Opportunities in Pakistan
According to the online property portal, the average asking price for 10 marla and one kannal plots in Phases VII to XI of Defence Housing Authority (DHA) Lahore have shown 3.55% and 2.74% decline in Q3 of 2016.
Even Phases I to VI have registered a 2.28% drop, where the real estate trade is usually driven by genuine buyers and sellers. The prices of one kannal plots in Bahria Town Lahore, however, remained stable during this time of the year, but the same plot category saw a 3.49% decline in Bahria Orchard.
The plot prices in DHA and Bahria Town Islamabad also declined by 1.31% and 1.49%, respectively, in the quarter ended on 30th September 2016. The sale-purchase activity also remained stagnant in Sector B-17. As a result, the prices of the one kannal plot in the area fell by 3.32%.
The statistics from the property website divulged that the asking prices for 500 square-yard plots in DHA City Karachi and DHA Karachi saw a decline of 7.22% and 4.03% in the past quarter. The property prices in Bahria Town Karachi also slipped down as the asking price for 250 square-yard and 500 square-yard plots in the locality registered 4.15% and 1.77% drop.
What Does This Mean?
This means Pakistani expats in America can buy properties in posh localities at lower prices and gain the advantage to build their dream homes without compromising on the construction quality by getting the services of a professional architecture company in Pakistan. This will save them a lot of money, which wasn’t possible earlier.
Low property prices will not only enable overseas Pakistanis to construct new homes at reasonable charge, but also gives them the chance to build commercial buildings in localities like DHA and Bahria Town. They can rent out the commercial buildings to a suitable bank, business, retail store, restaurant, café or hotel and earn a decent amount every month in the form of rent without any hassle. If not, then they can always use the building to setup their own business.
CPEC – The Crown Jewel of New Economic Paradigm
To the extent business openings are concerned, China-Pakistan Economic Corridor (also known as CPEC) has emerged as a golden opportunity for both local and overseas Pakistani investors. According to experts, Gwadar port would immensely benefit China and Pakistan.
Owing to the fact that it will drastically shorten the transit distance of Chinese goods by linking China’s Kashgar city to Gwadar Port. This will reduce China’s access to gulf region from 12,000 km to 3,000 km. So investors have the opportunity to invest in infrastructure, energy and other sectors.
Mind you, investing in Gwadar property market can also bear good results because the potential geographical reality is likely to outclass Dubai in the future due to its geo-strategic and geo-economic location. Soon you will see it enter age of skyscrapers and many new constructions like hotels, restaurants, offices, flats and residential localities. So if you are planning to buy a property for rental purpose or to setup your own business, then this is the time to gain the advantage.
Good US-China Relations Provide Support to CPEC
Trump has shown interest in improving relations with both China and Russia. Improved ties means USA may actually be supporting the CPEC project. China and Russia are already keenly interested in developing the project. So it seems like a win-win situation for CPEC investors.