The impact of lower interest rates on real estate in Pakistan is a concern of every Realtor and citizen nowadays. So, we will answer this question in this article. The State Bank of Pakistan has notably reduced the interest rate from 22 % in 2023 to 15%. This decrease will impact the Pakistani economy in multiple ways and the real estate sector will also have a positive impact. According to research, Pakistanis have 31 trillion Rupees in bank savings to receive monthly interest from the banks.
After the reduction in interest percentage, they will withdraw their bank savings to invest in real estate and other businesses. We will discuss the possible positive changes for the Pakistani real estate sector after the reduction of interest rates. Let’s read!
Detail of Impact of Lower Interest Rates on Real Estate in Pakistan
After the reduction in interest rates, the real estate sector will see the following changes and developments:
Lower Interest Rate Reduced Bank Saving Profits
Due to lower interest rates, people no longer deposit their money in their bank account to get fixed interest on savings. Instead, they will withdraw this money and invest in a business or real estate to earn higher profits. For Example, the State Bank of Pakistan has lowered the interest rate from 22% in 2023 to 15 % in 2024.
The significant reduction in interest rates will reduce the fixed profit on bank savings accounts. It will compel people to withdraw their bank savings and invest in a business or property to earn more profits.
Reduced Interest Rates Increased the Demand for Home Loans
With the lower interest rate, there will be an increase in demand for home loans. It will increase the investments in the real estate and construction industry.
This positive cash flow will increase the demand for houses in the country. As a result, the real estate market of Pakistan will recover from the ongoing recession.
Property Price Appreciation
The lower interest rate will increase real estate investment. The demand and price for existing properties will rise. So, it will cause real estate property appreciation.
Investment Options with Property Naama Group
You can invest with Property Naama Group in various real estate projects according to your budget and life goals. You can invest in commercial and residential properties. We are working on more than 20 mega real estate projects in the country and abroad. Here is the list of our projects where you can invest :
- Umar Mall and Apartment
- Umar Chalets Murree
- Umar District Tower Bahria Town Rawalpindi
- Umar Tower Ajman UAE
- Umar Farm Houses And the list goes on.
You can contact our marketing team through the contact numbers at the end of this blog or on our social media pages. Book your free appointment with our property consultant and plan your next investment.
Contact for Booking and Information
For booking and other details of properties in Pakistan and UAE, you can reach out to us via :
Our Email address: Info@propertynaama.com
Oversees Clients (For Call Only):
UAN: +92 332 7777888
Overseas and Domestic Clients (For WhatsApp):
WhatsApp: 0331 0105531
Disclaimer:
Please note that the information provided in this blog post is for educational and awareness purposes only and should not be considered professional advice.
Property Naama Group is not responsible for any investment decisions by our clients or investors based on the information provided.
