Pakistani bought $ 4.3 billion property in Dubai in one year

[Kambojaric]

I can't donate posts but I can sign a mutual "thanks" agreement whereby both of us will thank each other posts wherever we see them. What say you ? deal?

be active on PDF , its a good Source to learn
you will be senior member in no time ..

Believe me I am trying my best since exclusive senior member only sub forums have started coming into existence. I am otherwise much more of a lurker than a poster.

 

[Danish saleem]

1. If you compare the inflows vs outflows, there is a massive difference in favor of outflows. There's your first negative. This money should have been invested in Pakistan. People are investing out of Pakistan because they can't find enough avenues to grow their net value due to a number of reasons. Simply stating inflows good, outflows bad especially for a country like Pakistan with a chronic account and trade deficit.
2. If you are inclined to believe the conspiracy theories going around, it is possible that a certain portion of this money is illegal. Remember the famous "turn your black money to white by investing in stocks while we look the other way" scheme by Zardari? Well this is a more legal way of doing this. Governments of Pakistan and UAE are effectively looking the other way while Pakistani money is entering UAE. And UAE is not exactly known for asking source of money and other bullshit like transparency.
3. Finally even for UAE, this money is going in to real estate. All the top cities of the world face this problem; foreigners pump their (legal and illegal) money in to their real estate. The result: property prices go up and out of reach of the actual residents of these citizens. In fact this issue has been highlighted by civil society groups in London recently. Here is a link if you are interested Empty homes, foreign buyers fuel resentment in London - The Globe and Mail
4. And finally for the investors themselves, UAE (and Dubai in particular) real estate is a gamble. Unlike older and established major cities, Dubai is a newcomer built entirely on credit. Remember the 2008 financial crisis? People left their cars parked in Dubai airports and fled. Lots of properties lost millions in worth overnight. There is nothing to say that this can't happen again.

Hope it helps.

Brother,

In the system of Open economy or Capitalism, you or any government not able to control the Inflows and outflows, the only factor which control that is the possibilities!

Question : Why people from whole world investing in Desert(Dubai)??

 

[AugenBlick]

This is half of Pak defence budget...... Would it not be better if this money were spent on opening a factory or two... a few solid manufacturing jobs!

 

[SBD-3]

One thing is for sure, Pakistanis are obsessed with Property. The financial sense of Pakistanis is probably one of the most conservative one in the whole world. A Pakistani saver can't think of outside Property and Prize Bonds. After these two, the national financial sense pretty much ends.

Indeed. The UK is full of Pakistanis who have saved up and invested in property in Pakistan only for shameless relatives and acquaintances back home doing "qabza" on these properties. If not them then a local thug will do this anyways. Where people are corrupt and the authorities do nothing about it, no sane minded individual would invest their hard earned money there.

One should ask, why in Pakistan, why not in UK? probably because in Pakistan they can easily evade the tax net while in UK they can't do so.

 

[Kambojaric]

One thing is for sure, Pakistanis are obsessed with Property. The financial sense of Pakistanis is probably one of the most conservative one in the whole world. A Pakistani saver can't think of outside Property and Prize Bonds. After these two, the national financial sense pretty much ends.


One should ask, why in Pakistan, why not in UK? probably because in Pakistan they can easily evade the tax net while in UK they can't do so.

For some maybe but a vast majority of the elder generation of British Pakistanis came to the UK in the 50s, 60s and 70s when there was a labour shortage here. These Pakistanis had always wanted to go home one day when they had saved enough money. The houses they built in Pakistan were supposed to be their place of residence when they moved back to Pakistan. Problem is most never did as their children had settled down in the west and did not want to move back. Still most use these houses when they go back to Pak on holidays or during the winter months but face problems as relatives back home have done qabza on these houses and in some cases they have to ask permission to stay in their own house. Come to UK and every second Pakistani uncle here has his own story on what has happened to the qothi he built back home.

 

[474474]

It is the outflow of capital ; the capital which could have been invested inside Pakistan
for generating economic growth and employment

Adding to that, this probably won't bring in rent (GNP) since these people will transfer that to another country.

 

[Jaanbaz]

One should ask, why in Pakistan, why not in UK? probably because in Pakistan they can easily evade the tax net while in UK they can't do so.

No because we still love our country, some may do it to avoid tax but there are many who wish to play a positive part in Pakistan. Personally I would never ever invest in Pakistan, not until there is some sort of accountability.

And London is pretty much the best place in the world to do business, outside London, England is kind of boring with rainy weather.

 

[SBD-3]

No because we still love our country, some may do it to avoid tax but there are many who wish to play a positive part in Pakistan. Personally I would never ever invest in Pakistan, not until there is some sort of accountability.

????????? What value does a property purchase makes to the economy rather than putting money in the black box? If you really have love for the country invest in places which add to economy like businesses, banks and corporations via their stocks.

For some maybe but a vast majority of the elder generation of British Pakistanis came to the UK in the 50s, 60s and 70s when there was a labour shortage here. These Pakistanis had always wanted to go home one day when they had saved enough money. The houses they built in Pakistan were supposed to be their place of residence when they moved back to Pakistan. Problem is most never did as their children had settled down in the west and did not want to move back. Still most use these houses when they go back to Pak on holidays or during the winter months but face problems as relatives back home have done qabza on these houses and in some cases they have to ask permission to stay in their own house. Come to UK and every second Pakistani uncle here has his own story on what has happened to the qothi he built back home.

And yet these Pakistanis continue to buy up even more properties and thus making housing more expensive for local residents?Anyways, Pakistanis are known for being "penny wise, pound foolish" kind of people.

 

[Jazzbot]

Most of this 4.3 billion probably belong to samdhi jee of Nawaz..

 

[Jaanbaz]

????????? What value does a property purchase makes to the economy rather than putting money in the black box? If you really have love for the country invest in places which add to economy like businesses, banks and corporations via their stocks.

Government of Pakistan must win our trust, when we see news of corruptions scandals breaking out every other week we think twice before putting any money in a Pakistani bank.

 

[Echo_419]

This is half of Pak defence budget...... Would it not be better if this money were spent on opening a factory or two... a few solid manufacturing jobs!

Nah to mainstream for Pakistanis

 

[SBD-3]

Government of Pakistan must win our trust[/B], when we see news of corruptions scandals breaking out every other week we think twice before putting any money in a Pakistani bank.

If the government is "not winning" your trust, why don't you try invest in UK? All you have to do is pay tax there. why so worried about it?
P:S. Pakistani banks are more well managed than British banks, where even the central bank is facing probes over the rate rigging.

 

[Umair Nawaz]

Indeed. The UK is full of Pakistanis who have saved up and invested in property in Pakistan only for shameless relatives and acquaintances back home doing "qabza" on these properties. If not them then a local thug will do this anyways. Where people are corrupt and the authorities do nothing about it, no sane minded individual would invest their hard earned money there.

@Pakistani Exile and Bamxa, did yr relatives or friends who had the property here registered it to the government?

 

[Mr.Nair]

What about prime property price in karachi or lahore compared to dubai

 

[Pakistani E]

@Pakistani Exile and Bamxa, did yr relatives or friends who had the property here registered it to the government?

It was a business and yes it was properly registered. I really don't want to disclose more on the internet.