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KARACHI: Pakistanis purchased 6,106 properties during 2015 as compared to 5,079 units last year, an increase of 20 per cent, Dubai Land Department (DLD) figures showed on Thursday.
Around AED 8 billion ($2.178bn) worth of properties were purchased by Pakistanis during the year as compared to AED 7.588bn ($2.066bn) last year, up 5.43pc.
Media statements that the government was investigating Pakistani investments in Dubai property market seemed ineffective due to the rise in purchases.
According to the DLD’s report, the overall real-estate investment exceeded AED 135bn in 2015 (55,928 investors) as compared to around AED 109bn (41,715 investors) a year ago.
Pakistanis have invested AED 24bn in Dubai property market since 2013.
Some brokers were surprised with the trend as they believed that the money flow from overseas (particularly from Dubai) was pushing up the real estate in Pakistan.
Owner of Parekh Estate in Clifton, Abdul Wahab Parekh, said businessmen invested more in Dubai property market followed by politicians and industrial tycoons.
Most businessmen, perturbed by imposition of 0.03pc and 0.06pc withholding tax on banking transactions, have pulled out their money from the banks and parked it in the real-estate of both Dubai and Pakistan, he said.
“In Dubai, supply of real-estate is currently higher than demand causing downward trend in prices,” he opined.
On holding of Expo Dubai 2020, Parekh said that the event may drive up the prices of rentals.
Another broker in Karachi said that a huge chunk of money that goes in the Dubai property market comes from the overseas Pakistanis.
Published in Dawn, February 26th, 2016
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Comments (39) Closed
Feb 26, 2016 08:17am
All black money moving to Dubai
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Feb 26, 2016 09:55am
With well documented property transactions in UAE, Pakistani government can get a good idea as to you all have this much disposable income and what is their tax contributions at home. But this requires political will as most of the faces are expected to be that of Near Ones
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Feb 26, 2016 10:31am
We need to see the list of Pakistanis who are buying Dubai real estate at such prolific rates - $6B of property bought in the last 3-4 years. That is nearly 650B rupees. Those questioning corruption at the highest levels should also start getting answers to their queries. No one makes this kind of money (even collectively) in Pakistan! Actually no one makes this kind of money in a legal way anywhere in the world, and those that do don't invest in Dubai!
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Feb 26, 2016 12:29pm
if all the money Pakistanis keeping in foreign banks bring back to Pakistan, we might have foreign reserves in excess of 300 Billion USD
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Feb 26, 2016 01:28pm
All these billions belong to government treasury. This money has not been earnd by honesty. Bribes, corruption, fraud, theft etc etc and etc.
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Feb 26, 2016 01:58pm
All looted from Pakistan and its tax payers....
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Feb 26, 2016 01:59pm
Get all of them and check how much tax they have paid....
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Feb 26, 2016 02:00pm
I am sure this all money can easily return back to Pakistan if Pakistan can convert Gwadar a complete safe and modern city like Dubai. I believe it can be done within five years of time. Govt can board private investors like Bahria Town and make some amendment in constitution and give special status like China has given to Hongkong.
P.S:Millions of people like me don't like to live abroad in the same time we hate to return to Pakistan due to poor law and order and infrastructure condition.
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Feb 26, 2016 02:24pm
Dubai is proving to be a haven for looted and shady money, all glitter and gloss, no ethics.
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Feb 26, 2016 03:15pm
Govt., has failed to stop money laundering. What happened to super model case.
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Feb 26, 2016 03:24pm
@Khalid (From Japan) According to the reports most of the properties are bought by the overseas Pakistanis. So why this money have to return to Pakistan. Secondly Dubai is giving permamnet stay to those who bought the properties. So it is an investment for the future and a way of securing long term visa as well. Many Pakistani origin families residing in America and Europe are making Dubai as their second home. The reason is that it is better to invest in a country where there is a mixture of east and west. Dubai is a far better choice than Pakistan, when someone wants to more their family from Europe.
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Feb 26, 2016 03:48pm
@Malik people like you are most welcome to move to dubai,for the rest of Pakistan we will strive to make sure that Pakistan' s future is bright, almost every criminal and politician has a solid footing in dubai.
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Feb 26, 2016 03:49pm
@Khalid (From Japan) gawadar will be developed however the I'll wishers of Pakistan prevent it to be.
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Feb 26, 2016 03:49pm
Looking at the tax collection rate in Pakistan, it looks most of this is black money. UAE Govt must be aware of this. Have they ever asked a question about the source of this ill money. No never, every one knows this. People understand the corruption level in Pakistan but Is there any moral, legal or religious responsibility of UAE Govt to stop this black koney?
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Feb 26, 2016 03:52pm
@Greetings they need money direly for expo 2020 so no questions are expected
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Feb 26, 2016 05:04pm
@Malik Not true at all, most of this money is from Pakistanis from Pakistan and not Pakistanis in Europe or America. Very few overseas Pakistanis invest in Dubai the vast majority are Pakistanis who want to hide their incomes for tax reasons or because that income was earned via corruption. Please investigate these people and take action against them.
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Feb 26, 2016 05:41pm
Tax tax lot of people talking about checking their taxes paid, but why? the Sheriff family claims to be alway rich and well off from start, did you know Mr NS the PM only paid 428 rupee tax in 1984 and non 1985 and 1987...he and his co are probably paying peanuts at the moment. tooba
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Feb 26, 2016 05:48pm
the list of these buyers should be checked against the tax payers in Pakistan. Any of those who do not pay tax in Pakistan. The tax authorities should investigate.
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Feb 26, 2016 05:52pm
@Jatt
how do you know that most expat Pakistanis don't invest in Dubai? what is your evidence?
I am UK based I can tell you lots of Pakistanis even born in the UK invest in Dubai actually. It has been very popular place to invest for at least the last 20 years. I even know the taxi drivers here have invested there.
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Feb 26, 2016 05:55pm
Any investment in Mideast will be loss, oil prices will remain down; moreover Tulsa electric cars run on Batteries will be in Market at cheap prices by 2018 running more than 200 miles before need for charge. . Oil is history, so are the Middle Est High rises
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Feb 26, 2016 06:31pm
I bet not a penny was paid in taxes on this money used to buy these properties..
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Feb 26, 2016 06:33pm
NAB wake up!!!
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Feb 26, 2016 06:49pm
@Greetings If the money is helping the UAE economy, why should they question the people who are bringing the money. It is for India and Pakistan governments to stop the outflow, not for the UAE authorities. Put your own house in order, dont blame others.
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Feb 26, 2016 06:58pm
@Ahmad you are absolutely right. Very soon oil will become less relevant whem people start moving to electric cars which are more environment friendly too.
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Feb 26, 2016 07:11pm
"Around AED 8 billion ($2.178bn) worth of properties were purchased by Pakistanis during the year " - where is this money coming from ? Every year finance minister Dar runs to IMF for the loan but so much money ($2.178 bn) is invested in the real estate by affluent class. Who is paying taxes ? it is all black money.
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Feb 26, 2016 07:18pm
History repeats itself.
Bank in 2008, just before the financial meltdown,Pakistanis and Indians were the biggest investors in Dubai real estate market.. And after the crash, property prices in Dubai dropped by as much as 70%. Many lost their shirt in the crash. Many were fired from their jobs in the downturn.
The Dubai economy is again heading towards a slow down; jobs are being lost; homes on the market for sale or rent go vacant for several months without any takers. U.A.E also just announced first VAT Tax of 5% beginning 2018. That's how bad things are already. With oil prices still around $30 a barrel, I expect more layoffs, home prices and rents falling and more taxes introduced by the governments around GCC to make up for revenue shortfall.
Pakistanis will soon find themselves in the same situation again, eight years later! They must be those who have money to loose!
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Feb 26, 2016 07:21pm
@timetostopthis Electric cars were introduced in the U.S, and Europe back in the 1990s.. Almost two decades later, majority of cars still use gas and other fuels. 'Very soon' in your assertion, is at least 2-3 decades away. Oil is and will still remain relevant in every aspect of industrialized economies.
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Feb 26, 2016 08:18pm
@akram Money traveling from UK would be categorized as such. The article is also clear about the source of this investment - politicians, businessman and industrialists from Pakistan. Taxi drivers from UK or for that matter from Pakistan aren't on the list.
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Feb 26, 2016 08:19pm
While Indians are no better,
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Feb 26, 2016 08:26pm
@Mahmood I have no sympathy for those who are and will lose money in Dubai real estate. However if this money is ill-gotten, getting it back will make it so much harder. It is Pakistan which will lose in the end - first the money was stolen, and second it was lost in the Casino of Dubai!
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Feb 26, 2016 08:50pm
Was all this money sent through legal channel: State Bank of Pakistan? If not then all these Pakistanis should be investigated by the military courts only.
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Feb 27, 2016 03:58am
good dubai is good no corruption
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Feb 27, 2016 04:17am
lets hope not but this dubai property bubble can pop anytime with falling oil prices and economies around the world struggling. People investing in Dubai need to think several time before making investment there. Pakistan is always a safer property investment option.
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Feb 27, 2016 06:55am
It is foolish on the part of Citizens of Pakistan to invest money in Dubai or any parts of the Middle East. Iraq, Syria and Yemen are in shambles due to the civil wars in these countries. The winds of instability are moving very rapidly towards Saudi Arabia, UAE, Bahrain, Qatar and Kuwait and they are in line for the future civil wars. Therefore it will be prudent on the part of Pakistani to shy away from investment in the Middle Eastern countries.
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Feb 27, 2016 07:31am
Mind boggling! And if some of the money came from Pakistan, the question is : how did it get there?
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Feb 27, 2016 04:17pm
@Muhammad Arshad - While I agree with you what you said, to motivate the investors (1) the perception of corruption is required to be removed and honest political leadership to be in place instead of dakoos, chors and bhuthkhors.
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Feb 27, 2016 04:22pm
@aslam shaikh - How did your reach to the conclusion without having seen the list of the people. Your statement is certainly true for the money invested by corrupt and bhuttakhor leaders.
However, I know there are lot of overseas that have invested their hard earned savings in properties of dubai. Please explain how do you judge this money also as black.
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Feb 27, 2016 04:29pm
@Khalid (From Japan) Do you agree with the comments being made here that all the money invested in dubai are sourced from corruption and bhuttakhori? Significant white money earned by hard work by OSPs is also invested there.
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Feb 27, 2016 04:35pm
@Greetings While we have been electing (or let it happen) the corrupt people to rule us, how can we expect others to was our dirty laundry. The only solution is to have honest leadership. Let us struggle for it.
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