The real estate opportunity

In a time of increasing inflation and devaluation of the Pakistani rupee, the government is looking for more taxes but it seems like there is no solution, instead of going after tax evaders, the government is penalising the existing tax payers. How valid is this claim? The urban real estate valuation in major cities in Pakistan has expanded fundamentally during recent years which ought to be in direct proportionality to purchasing power. This was the case in thickly populated cities like Bombay, Hong Kong and so forth. But the rental yield stands at 3.5 per cent to 5pc. An analysis of data from the ministry of planning, the State Bank of Pakistan (SBP), the Pakistan Stock Exchange (PSX), and Zameen.com found that the total value of assets in Pakistan, excluding the value of the commercial real estate and private businesses, is abnormally overvalued. It is estimated that over $19 billion sailed into empty urban plots in 2021.