The real estate sector is one of the best choices for investment, particularly for long-term investment, globally. However, due to high taxation and other challenges, the real estate market in Pakistan has been in crisis for the past 10 years. As a result, many Pakistani investors are turning their attention to the Dubai real estate market, which is comparatively more investment-friendly and attractive.
Recently, Hasan Bakhshi, Chairman of the Association of Builders and Developers of Pakistan (ABAD), also described the Dubai market as more appealing for those looking to invest in real estate.
In a viral video, while comparing Dubai’s investment-friendly environment with the problematic market in Pakistan, Bakhshi said: “In Pakistan, there is a 60 percent tax on my income, while in Dubai, just an hour and a half away by flight, the tax is only 9 percent.”
“In Karachi, my property title can be illegally occupied at any time, while in Dubai, my title is secure. In Pakistan, when I buy a plot and sell it, I have to pay a 29 percent capital gains tax, while in Dubai, the same tax is zero percent. Similarly, in Dubai, when I apply for approval, there is a digital system, and I get approval without paying a single rupee. In Pakistan, the system is conventional and infested with corruption,” he added.
He further explained that when he works in Dubai’s real estate market, he enjoys buyers from all over the world, and no one asks where the buyers or sellers have sourced their funds from. However, when he invests in Pakistan, both he and his clients are asked over 120 questions.
Regarding the fluctuation in the value of the Pakistani rupee against the dollar, Bakhshi pointed out that currency fluctuation in Pakistan has reached up to 100 percent in the last four years, while in Dubai, the currency parity is stable, with no fluctuation.
He also compared transfer fees, noting that when you buy property in Pakistan, you have to pay up to a 16 percent transfer fee, while in Dubai, the transfer tax is only 4 percent.
Bakhshi advised the Pakistani government, stating that the world is now a global village and it is crucial for Pakistan to remain competitive with regional economies.
