Individuals, organizations and general people of over 100 nationalities invest in the property market of Dubai, according to Dubai’s land authorities, one of the most investor-friendly destinations among seven states of the UAE.
It is also the most populous city in the UAE.
The top countries to invest in Dubai’s real estate from the past few years include Pakistan too. Other nations to do the same include India, Britain and Saudi Arabia. Since 2013, all of these countries have been investing in Dubai in large quantities including Pakistan.
But from 2016, investment from Pakistan has gradually declined in Dubai’s real estate.
The estimated population of Pakistanis in the United Arab Emirates is a lot. The tiny gulf nation has over 1.2 million Pakistanis living there most of whom have gone there for their bread.
According to builders and real estate agents, Pakistanis are withdrawing their investments from the UAE and taking their money back into Pakistani markets. The security and economic growth being the reasons for these.
Dubai’s tax authorities have started sharing non-native data with their government from January 1, 2017. This has forced Pakistanis to bring back the money to Pakistan where, at the moment, profit margins are concrete and much higher than those in Dubai.
“Even the rental income in Dubai is on the decline, which is quite opposite in Pakistan,” Association of Builders and Developers of Pakistan (ABAD) former senior vice chairman Arif Jeewa said.
“Contrary to this, the property market in Karachi, Lahore and Islamabad is providing handsome returns.”
Pakistan became the 104th member of the Organization of Economic Cooperation and Development (OECD) convention on mutual administrative assistance in tax matters in September. After application of this deal, which will come into effect from 2018, Pakistan will be sharing financial data of its citizens with OECD member-countries.
In a nutshell, if a Pakistani citizen purchases any real-estate in the UAE, its government will share the data with the government of Pakistan and both the countries will be able to know everything about the deal, perhaps even the source of income.