A blog about real estate, lifestyle and tourism in Pakistan | Feeta Blog

  • News
  • Construction
  • Tips & Advice
  • International
  • Amazing Design
  • Interior Decoration
  • Style Your Home
  • Design Ideas

USD and Pakistan Real Estate

feeta_admin
Friday, 07 May 2021 / Published in Featured, International, Market Overview, News, Real Estate, Real Estate Guide, Real Estate Trends, Trends

USD and Pakistan Real Estate

USD and Pakistan real estate enjoy a very complicated relationship. Although they are a very small factor especially for the emigrants, not much is available according to research. However, if you understand how they affect each other, you can probably make a lot more money than you usually do. It is often understood that a rise in USD price is directly responsible for real estate growth. In 2018, when the dollar gained 35% in record time, real estate was also expected to grow. It usually functions as a hedge, however, it took almost 2 years and a global pandemic to realize real estate.

Today while house prices are about 30 to 50% higher than year 2018, in dollars the prices are similar to that of 2018. Now it is time to find out if this correlation has existed in the past or not and how it works usually plays out.

Taking DHA Lahore as an example, let’s look at the data we have:

USD – PKR exchange rate in 2005 -2007 = 60

2008 = 70

2009 – 2011 = 80 to 85

2012 = 90

2013 to 2017 = 100 to 105

2018 = 121

2019 to 2021 = 155

For the purpose of this study, we calculated average prices of DHA Lahore Phase 5, 6 and 7.

 

Year 2005

1 x USD = 60 PKR

Average price of DHA Lahore Phase 6 in 2005 = 8 Million (150,000)

Average price of DHA Lahore Phase 7 in 2005 = 7 Million ($ 116,666)

 

Year 2011

1 x USD = 80 PKR

Average price of DHA Lahore Phase 5 in 2010 = 10.2 Million ($ 127,500)

Average price of DHA Lahore Phase 6 in 2010 = 6.6 Million (82,500)

Average price of DHA Lahore Phase 7 in 2010 = 4 Million ($ 50,000)

 

Year 2013-2014

1 x USD = 100 PKR

Average price of DHA Lahore Phase 5 in 2013 = 20 Million ($ 200,000)

Average price of DHA Lahore Phase 6 in 2013 = 15 Million (150,000)

Average price of DHA Lahore Phase 7 in 2013 = 10 Thousand ($ 100,000)

 

Year 2016

1 x USD = 105 PKR

Average price of DHA Lahore Phase 5 in 2016 = 29 Million ($ 276,190)

Average price of DHA Lahore Phase 6 in 2016 = 24 Million (228,571)

Average price of DHA Lahore Phase 7 in 2016 = 14.6 Million ($ 139,047)

 

Year 2019

1 x USD = 160 PKR

Average price of DHA Lahore Phase 5 in 2019 = 35 Million ($ 218,000)

Average price of DHA Lahore Phase 6 in 2019 = 28 Million (175,000)

Average price of DHA Lahore Phase 7 in 2019 = 13.7 Million ($ 85,625)

 

Year 2021

1 x USD = 160 PKR

Average price of DHA Lahore Phase 5 in 2021 = 40 Million ($ 250,000)

Average price of DHA Lahore Phase 6 in 2021 = 36 Million (225,000)

Average price of DHA Lahore Phase 7 in 2021 = 22.7 Million ($ 141,875)

Summary

Looking at the above data, it is clear that profits in USD vary depending on the cycle you are looking at. Keeping your property for long periods of time is usually not a very profitable option. Smaller cycles with a stable USD PKR period are where house prices have really offered good returns.

It is also clear that an increase in USD-PKR rate does not have an isolated effect on house prices. For example during the period from 2006 to 2011 house prices fell while USD – PKR rose from 60 to 80. However, the house prices actually cover the gap.

USD and Pakistan Real Estate 2021

While the real estate market is growing according to PKR, it has barely managed to gain the lost glory of the year 2016 in terms of USD. Rather in most areas, it is still struggling as Phase 5, which is lower in terms of USD than its 2016 high.

If you have invested dollars in Pakistan in the last 10 years and you have been consistent then no matter what happened, you have earned some money. Not as much as you thought you had or believed.

That is why renting generating real estate is the key to creating wealth. Plots really aren’t the way to go if you want to create real wealth in real estate. It is the effect of drops of the rents that enriches you, and not a piece of land that lies there for all eternity.

The dilemma is that anyone who invested in Plots in 2019 or 2020 is now at least 30 to 40% richer. Where those who invested in plots in 2015 or 16 or earlier are now just breaking through.

On the other hand, everyone who has invested in rental real estate during these times enjoys their wealth growth regardless of the time frame.

Lesson learned?

When the dollar rises and real estate falls, it’s time to buy plots. However, if you want to make money regardless of when you are investing in rental generic real estate, it is the only evergreen solution.

For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.

What you can read next

dha-Multan
Why should you invest in DHA Multan?
Family-Homes-Looking-Good-In-Gold-Marble
Family Homes Looking Good In Gold, Marble And Wood
Mid-Century-Modern-Interiors-Spiced-With-Asian-Influence
Mid-Century Modern Interiors: Asian Influence

Style Your Home - Gallery

Pin #700169073308717047

Source: picoji.com

3 marla house plan has 19.5 ft front and 35 ft depth. House plan is designed where you can park one car in this small space. The house of 3…

3 marla house plan has 19.5 ft front and 35 ft depth. House plan is designed where you can park one car in this small space. The house of 3 Marla is planned to fulfill all the living needs as it has 3 bedrooms with attached bathrooms and one powder room. The façade of the design is in magnificent shades of golden brown, black and white. The asymmetry of the design brings forth the dynamism of the design.

Source: gharplans.pk

Hidden Bookcase Doors – Secure & Custom – High Tech Secret Bookcases

Hidden Bookcase Doors – Secure & Custom – High Tech Secret Bookcases

Source: hiddenpassageway.com

Thanks to everyone that voted on the dining chairs in my stories! I went with the popular vote and I love them in this room! We’ve already enjoyed eating in…

Thanks to everyone that voted on the dining chairs in my stories! I went with the popular vote and I love them in this room! We’ve already enjoyed eating in here and I can’t wait for many memories to be made around this table!! 💗

Source: ballarddesigns.com

#HiddenRoom #HiddenRoomDesign #SecretRoomIdeas

Hidden Room Design

Source: homydea.com

Amazing Secret Rooms And Hidden Passageways Built Into Houses – Face IDecor

Amazing Secret Rooms And Hidden Passageways Built Into Houses – Face IDecor

Source: jrofox.com

6_marlas_double_story_house_for_sale_in_adyala_rd_near_mubarak_lane_5_awan_street_rwp_3340133431565353025

6_marlas_double_story_house_for_sale_in_adyala_rd_near_mubarak_lane_5_awan_street_rwp_3340133431565353025

Source: civilengineerspk.com

The top half of this room is very black and dark, while the bottom half is very light and white. The floor is dark too, but a very different color…

The top half of this room is very black and dark, while the bottom half is very light and white. The floor is dark too, but a very different color from the other two. The contrast in colors seems to give this room three levels.

Source: westelm.com

Pin #700169073308716979

Source: m.domino.com

20 Secret Room Ideas You Wanted Since Childhood – Hongkiat

20 Secret Room Ideas You Wanted Since Childhood – Hongkiat

Source: hongkiat.com

versteckter Aufenthaltsraum. #hidden #Recreational #room #hidden #Recreational -…, #Aufent…

versteckter Aufenthaltsraum. -…, room

Source: well3.hizlievdenevenakliyat.com

Pin #700169073308716966

Source: budgetstairs.com.au

Pin #700169073308717040

Source: behance.net

Pin #700169073308717010

Source: theultralinx.com

Great The best way to Design a Secret Room

Consider it or not, secret rooms like you will have seen in a thriller/suspense thriller or science fiction/fantasy movie will not be only for film un… ,

Source: homebezt.com

9 large & affordable vintage rugs | Sunny Circle Studio | One of the most common questions I am asked is where I find and source my rugs for my…

9 large & affordable vintage rugs | Sunny Circle Studio | One of the most common questions I am asked is where I find and source my rugs for my dining room, living room and bedrooms! In this blog post, I’m sharing colorful vintage rugs that are affordable!

Source: sunnycirclestudio.com

Pin #700169073308716982

Source: behance.net

Pin #700169073308717047

Source: picoji.com

Pin #700169073308716999

Source: sastairs.com.au

Great The best way to Design a Secret Room

Consider it or not, secret rooms like you will have seen in a thriller/suspense thriller or science fiction/fantasy movie will not be only for film un… ,

Source: homebezt.com

GOSSIP

  • News
  • Construction
  • Tips & Advice
  • International
  • Amazing Design
  • Interior Decoration
  • Style Your Home
  • Design Ideas
TOP