Real estate market fraud

 Real Estate Market Downturn: Why Holding Your Property is the Best Strategy

The real estate market, like any other, experiences ups and downs. During a downturn, panic often sets in, and property owners consider selling to avoid further losses. However, as someone deeply involved in real estate, I, Nasir Gondal, advise against making hasty decisions. Selling during a downturn can lead to missed opportunities for significant future gains. Let’s explore why holding your property is the best strategy and how to avoid falling victim to fraud during uncertain times.

Real estate is inherently a long-term investment. Expecting significant profits within a year or two is often unrealistic. Historical data shows that markets recover over time, often rebounding stronger than before. Those with the patience to weather downturns are typically rewarded with higher returns.

Case Studies: DHA Developments

Observations from various Defense Housing Authority (DHA) projects illustrate this point:

  • DHA Quetta: In December 2024, 1 Kanal residential plot in sectors A1, A2, and A3 were priced between PKR 60 to 80 lakh for army allotments and PKR 90 to 110 lakh for civilian plots. By January 2025, these prices had risen to PKR 115 to 130 lakh, with featured plots reaching up to PKR 150 lakh. This significant appreciation occurred despite previous market downturns.

  • DHA Lahore and DHA Gujranwala: Similar upward trends have been observed with property values increasing over time, underscoring the benefits of holding onto investments during market fluctuations

    Emerging Opportunities: Lahore Smart City

    Lahore Smart City has transitioned from negative to positive pricing, indicating a shift towards profitability. This turnaround exemplifies how patience can convert potential losses into gains as market conditions improve.

Beware of Fraudulent Practices During Market Recoveries

During market recoveries, some real estate advisors may exploit uninformed sellers:

  1. Understating Property Value: Advisors might present offers below the current market rate, capitalizing on the seller’s lack of market awareness.

  2. Profiting from Resale: After acquiring the property at a reduced price, they resell it at its true value, pocketing the difference.

Protecting Yourself: Steps to Ensure Fair Transactions

To safeguard your interests:

  • Consult Multiple Sources: Before finalizing a sale, seek valuations from several reputable real estate agents active in the specific housing project.

  • Leverage Social Media: Engage with online property forums and groups to gather current market insights.

  • Stay Informed: Regularly monitor real estate news and updates to understand market trends and property values.

 

In real estate, patience is more than a virtue; it’s a strategy. Holding onto your property during downturns can prevent losses and position you for significant gains as the market rebounds. Stay informed, consult multiple sources, and approach sales decisions with caution to maximize your investment’s potential.