Pakistanis are amongst the top 3 property investors in UAE during the first half of 2016
Pakistanis bought property worth three billion United Arab Emirates (UAE) dirhams (around US $816 million) in Dubai during the first half of 2016.
These numbers put Pakistan just behind Indians and Britons who invested Dh7 billion and Dh4 billion in real estate in UAE respectively.
Pakistanis have invested over 18bn dirhams (Rs512bn) in Dubai realty market in the last two-and-a-half years, according to reports based on Dubai Land Department appeared in the UAE media.
In 2015, Indian nationals ranked the highest value foreigners, making property transactions worth 20bn dirhams from 8,756 investors.
Britons came in at second with a total of 10bn dirhams worth of property transactions from 4,889 investors while Pakistanis ranked third with 8bn dirhams from 6,106 investors.
In 2014, Pakistanis were at second position with 5,079 transactions with a total of 7.59-dirham investment.
Abdul Wahab Parekh, the owner of Parekh Estate in Clifton said that Pakistani politicians, bureaucrats and some genuine buyers have lifted properties in Dubai instead of local businessmen.
‘Businessmen have pulled out their money from banks after introduction of 0.3 to 0.6% withholding tax on filers and non-filers on tax returns. They have basically parked their money abroad,’ he added.
Mr Parekh believed that after new valuation rates for property, the local businessmen were unlikely to take the plunge and started buying property in Dubai as the prices on that market have been in decline for more than one year.
‘Businessmen have pulled out their money from banks in Pakistan after introduction of 0.3 to 0.6 per cent withholding tax on filers and non-filers on tax returns,’ Parekh added.
The sale/purchase had become negligible from July 2016 onwards as buyers and sellers had adopted wait-and-see approach, especially after new valuation rates, said Mohammad Najeeb, the owner of Nazimabad Estate in North Naziamabad.
CEO of Citi Associates in Clifton, Mohamed Shafi Jakvani, said the volume of property transactions has shrunk and only 10-15% deals have taken place in DHA and Karachi Development Authority compared to the volume before the introduction of latest finance bill.