ISLAMABAD: Small investors in Pakistan’s real estate sector are reeling from a prolonged recession, risking their hard-earned savings and facing imminent losses.
Many invested with hopes of profit, only to find themselves trapped as property prices plummeted by 50% to 70% over the past two years.
Rashid Mahmood, a small investor in Bahria Town, Rawalpindi, expressed deep concern over potential cancellation of his booking and loss of his investment, highlighting the dire situation faced by thousands.
Abdul Rauf, another investor, emphasized how his modest investment for future needs turned into a significant financial setback. With many investors struggling to meet payment demands from housing societies, some are resorting to selling personal valuables. They appeal to the government for a one-time bailout policy to rescue them from impending financial ruin and urge for long-term strategies to safeguard future investors.
Meanwhile, housing society owners defend their stance, asserting that demands for payments align with signed agreements and market dynamics. However, they acknowledge the distress faced by investors and emphasize their efforts to provide incentives amidst challenging market conditions.
Real estate agents, who also face uncertainty, advocate for governmental intervention to protect small investors. Aamir Chaudhry lamented the unforeseen recession and emphasized the need for supportive policies to prevent further financial distress among investors, particularly those who invested in property files.
As the real estate sector mirrors broader economic turmoil, there is a pressing need for comprehensive strategies to support middle-class and small investors. Without intervention, there is a risk that these investors will face severe losses through cancellations of their property files due to payment defaults. Thus, immediate government action is crucial to stabilize the sector, protect investors’ interests, and mitigate the economic fallout affecting countless families across Pakistan.
