Now is the perfect opportunity for any overseas Pakistani interested in entering Pakistan’s real estate market! The property market is on the rise, thanks to the government’s efforts to facilitate property investment for overseas Pakistanis. Additionally, advancements in technology, including the widespread use of social media, ensure that nothing remains concealed from the public eye. This means that potential buyers living abroad can access detailed information about property investments in Pakistan without leaving the comfort of their homes. Through platforms like YouTube, Facebook reviews, and online images, you can virtually explore the land you desire to invest in. However, it’s crucial to conduct thorough research and exercise caution before selecting a property. This task requires meticulous investigation, keen analytical skills, and the ability to detect any fraudulent activities. Here are a few recommendations to help you in this regard:
Essential investment guidelines for overseas Pakistanis
Essential investment guidelines for overseas Pakistanis
Is this project safe for investment?
The first question to address when considering a property purchase is whether the housing project is a secure investment opportunity. If it falls under the jurisdiction of municipal authorities like the Capital Development Authority (CDA), Karachi Development Authority (KDA), or Lahore Development Authority (LDA), or if it is regulated by institutions such as the Defence Housing Authority (DHA) or the Pakistan Armed Forces (PAF), then it is likely to be a safe investment. Also, verify if the residential scheme has been approved by government authorities. If a project is still awaiting approval, it should raise concerns for potential buyers. Lack of approval often indicates that the housing scheme has been canceled by the authorities. Therefore, it is safest to invest in well-known and approved projects only.
Assess the builder's track record
If the developer or builder is a reputable figure in the real estate market and has a history of successful housing projects, you can trust them without hesitation. Builders like Rufi Builders, Saima Group, and Pakistan Navy have undertaken numerous large-scale residential schemes that you can consider investing in. A trustworthy developer will provide a timeline for project completion. Assess their current ongoing projects to determine their efficiency and timeliness, as this will help you gauge whether they will deliver as promised. When selecting a property, whether for purchase or rent, remember to base your decision on what you can see rather than relying solely on promises. Ask yourself these questions: Is there access to electricity, gas, and water? How well-developed is the basic infrastructure, such as roads and drainage systems? What are the transportation options available? Is the security system up-to-date? Does the area experience frequent power outages (load-shedding)?
Exercise caution and stay vigilant against fraudulent practices and scams
Engage the services of a reputable legal firm that can conduct thorough background checks on your behalf. Leave no stone unturned in your investigation of the property developer.Ā Reputable projects typically have a well-defined plan or design that potential buyers can review. These layout plans must receive approval from the relevant government authorities.
- Ensure a documented record of the property’s ownership history: It is crucial to request proof of the developer’s ownership history for the property they are selling. Genuine developers will possess official records of their past and ongoing projects.
- Verify the seller’s legal possession of the property: Investing in real estate is a significant decision for any buyer, as it involves a substantial amount of money. Therefore, it is imperative to insist on obtaining and verifying official documents that confirm the seller’s ownership of the property being offered.
- Confirm clearance of all outstanding dues on the property: Avoid purchasing any property that has pending dues, such as unpaid utility bills or property taxes. If a seller expects you to bear this financial burden, it is advisable to refrain from engaging with them altogether.
- Request the original copy of the property’s registry: Although we have already emphasized the importance of documentation, it is necessary to underscore this aspect once again. Always demand the title document and/or the allotment letter from the seller. Make copies of these documents, and it is advisable to scan and store them immediately for future reference
Membership with the overseas pakistani foundation
As per the official website of the Overseas Pakistani Foundation, overseas Pakistanis who have been residing abroad since March 23rd, 1979, holding valid work visas issued by the Protectorate of Emigrants, Bureau of Emigrations & Overseas Employment (BE&OE), and Overseas Employment Corporation (OEC), are eligible for registration with the Overseas Pakistani Foundation. Those who are not currently registered with OPF can easily enroll themselves by paying a fee of PKR 2000. Your membership with OPF remains valid as long as you stay abroad.
Reasons to invest in pakistan for expats
One significant motive for expatriates to invest in Pakistan is the country’s rapid economic growth. Overseas Pakistanis explore investment opportunities in various sectors, including agriculture, retail, IT & telecommunications, power & energy, mining, tourism, textile, pharmaceuticals, automotive, and financial services. The Investment Facilitation Centre of OPF provides comprehensive information on policies and regulations governing these investment opportunities.
Buying property guidelines provided by the overseas pakistani foundation
To ensure a smooth property purchase process, follow these guidelines recommended by the Overseas Pakistani Foundation:
1. Confirm Official Approval:
If you intend to buy property from a private housing scheme, verify with the relevant local regulatory authority such as the Lahore Development Authority (LDA), Malir Development Authority (MDA), Faisalabad Development Authority (FDA), Rawalpindi Development Authority (RDA), or Capital Development Authority (CDA) to ascertain if the housing project has official approval.
2. Transfer of Land:
Inquire with the housing scheme administration about the transfer of land. It is advisable to have the land transferred in your name rather than receiving only an allotment. The Overseas Pakistani Foundation (OPF) recommends this approach.
3. Verify Seller's Registry Title:
If you are purchasing property from an individual, verify the seller’s registry title with the local authorities to ensure its authenticity.
4. Ensure Mutation Entry:
Once you have acquired property through a Registered Sales Deed, it is essential to ensure that the mutation entry is made in the land record. This step confirms your status as the legitimate property owner, as solely having a sales deed is insufficient.
5. Secure Open Plots:
Open plots are more susceptible to illegal possession. The OPF advises constructing a boundary wall with a gate around your property to safeguard it from unauthorized occupation.
6. Publish Notice:
Prior to finalizing the property purchase, consider publishing a notice in a local newspaper, which can help establish a legal record and provide public notification of your intentions.
By adhering to these guidelines, you can navigate the property buying process more effectively and protect your interests as an overseas Pakistani.
Simplified tax filing procedure for overseas pakistanis
In 2019, the government introduced measures to simplify tax filing for overseas Pakistanis. The stringent requirements for non-filers of tax returns were relaxed, allowing overseas Pakistanis to navigate the process more easily.
Overseas Pakistanis can now invest in Pakistan’s real estate sector without the previous obligation of filing tax returns before purchasing land. While overseas Pakistanis may not be subject to taxation, they become liable to pay property tax in Pakistan once they acquire property. This shift aims to boost remittances and alleviate the country’s financial challenges, forming part of the current government’s strategy to strengthen the Pakistani economy.
Moreover, the need to file income tax returns for properties valued above PKR 5 million has been eliminated. In summary, this presents an opportune moment for overseas Pakistanis to invest in the country’s real estate market without the burden of income tax filing obligations.
