Industry sources have reported a decline of around 15% in the prices of immovable properties during the first three months of 2023 due to the imposition of new taxes and political uncertainty.
The uncertain political situation has discouraged new investment in the property market, with overseas Pakistanis also hesitant to enter the market for the same reason.
Additionally, changes in the capital gain tax for immovable property and the imposition of deemed income during the current fiscal year have contributed to the decrease in property prices.
Shafi Jakvani, the Vice President of the Karachi Defence and Clifton Association of Real Estate Agents, stated that the government’s policies have further aggravated the investment scenario, adding that the heavy taxes on the property industry need to be reviewed to attract investment, given the already-declining prices of immovable properties.
Jakvani further emphasized that the present political and economic situation is already discouraging investors, and the indefinite extension of the time for capital gain tax is not correct. He also mentioned that the government has imposed wealth tax in the shape of fixed tax.
He urged the government to review the heavy taxes on the property industry in order to attract investment as prices of immovable properties have already fallen by 15 per cent in the first three months of the year 2023.
