Tag: real estate

  • Billionaire Mukesh Ambani buys Dubai’s most expensive villa for $163 million

    Billionaire Mukesh Ambani buys Dubai’s most expensive villa for $163 million

    India’s second-richest man is expanding his Dubai real estate portfolio with the acquisition of a new beachfront mansion, shattering his previous record for the most expensive residential real estate transaction in the city in a couple of months.

    According to reports, Mukesh Ambani purchased the Palm Jumeirah property from the family of Kuwaiti tycoon Mohammed Alshaya last week for approximately $163 million.

    Starbucks, H&M, and Victoria’s Secret have local franchises owned by Alshaya’s company. Ambani, whose net worth is $84 billion, is the chairman of Reliance Industries Ltd., the largest firm in India by market value.

    The tycoon has been buying up properties abroad and is increasingly searching for second residences in the west. According to Bloomberg, Ambani is looking into purchasing a home in New York and Reliance spent $79 million last year purchasing Stoke Park, a renowned country club in the United Kingdom.

    According to Bloomberg, the $80 million mansion that Ambani bought earlier this year is only a short stroll from his most recent purchase in Dubai. Until another mansion on the palm-shaped island sold for $82.4 million, that transaction represented the largest residential sale in the history of the city.

    This Thursday, the Dubai Land Department reported a $163 million real estate transaction in Palm Jumeirah without identifying the purchaser. Reliance’s spokesman declined to comment, and Alshaya’s representatives did not respond to calls for comment.

  • Majority of property owners in London are Indians, followed by English and Pakistani people

    Majority of property owners in London are Indians, followed by English and Pakistani people

    Indians are among the people who own the most real estate in the capital of the United Kingdom (UK), London, more than the English themselves.

    According to London-based residential developer Barratt London, the largest group of property owners in London are Indians, who are represented by those who have lived in the UK for generations, NRIs, investors from other countries, students, and families who travel to the UK for education. English and Pakistani people are next in number.

    These Indian investors, who reside in both the UK and India, are prepared to spend anywhere between GBP 290,000 and GBP 450,000 for a one, two, or three-bedroom property in London, the nation’s capital.

    “We are seeing a strong demand from Indian investors looking to purchase properties in London and invest in the stable and long-term property market. Outside of London, most of our products are sold to UK residential buyers, who buy these properties and live in them,” Stuart Leslie – International Sales and Marketing Director for Barratt London, told Financial Express.

    In London, 30 per cent of sales are made to pure investors (those who want to use the apartments as rentals), and 30 per cent of those buyers come from foreign markets.

    “This year we have seen a growth in the percentage of Indian homebuyers, who make up 7-8 per cent of the overseas market players. We are really reacting to where the demand is coming from rather than speculating and looking for business,” Stuart Leslie said.

    According to a Knight Frank survey, 10 per cent of India’s UHNWIs intend to purchase a new home in 2022, and they prefer to invest in domestic real estate, followed by homes on the UK, UAE, and US foreign markets.

    London is well-liked by Indian investors and homebuyers because it is a hub for finance and education and one of the major international entry points for investors.

    Additionally, it makes sense for Indian homebuyers to look at the real estate market in London given that the cost per square foot is roughly comparable between London and Mumbai and that the two cities also share a similar legal framework, making transactions simpler.

    “The reason why Indians are comfortable with buying property is because of the market fundamentals and confidence along with a history of Indians investing in houses in London. They’re eager to invest in the UK residential markets because they are getting better returns owing to the exchange rates and market presence presently. It is relatively a safer market in comparison to the UAE or India,” he said.

    In addition to being a “stable market” for residential real estate, the UK has advantages over other international potential markets, such as good weather and quicker travel times.

    Many families and students, especially those from India, relocate to the UK for educational opportunities. According to Stuart Leslie, the number of Indian students applying to UK colleges and universities has surged by 128 per cent in just one year.

    Therefore, there are several reasons why Indians have traditionally preferred to invest in the UK, including the country’s high-quality educational institutions, business-friendly environment, cosmopolitan mindset, language familiarity, and expanding investment opportunities.

    Currently, there is a demand for finished or nearly finished projects since people are looking to move quickly after the pandemic. Barratt London’s common price range for real estate is between GBP 390,000 and GBP 450,000.

    “This is not a price which people normally associate with the London market but with tier-II or tier-III cities. This makes people want to own properties in London rather than smaller cities of the UK,” he said.

  • Lahore Development Authority seals illegal commercial buildings

    Lahore Development Authority seals illegal commercial buildings

    On Thursday, the LDA’s Town Planning Wing carried out a massive operation against unpaid commercial fees and illegal commercial activity throughout the city.

    LDA DG Chaudhry Muhammad Ali Randhawa, who directed the operation, stated that illegal construction and commercial activity would not be tolerated and that action would be taken against them.

    The operation on Thursday involved sealing off illegal and unapproved commercial buildings and business centres in the neighbourhoods of Gulshan Ravi, Ferozepur Road, Multan Road, and LDA-controlled areas.

    According to chief town planner Shakeel Anjum Minhas, legal notices have already been sent to the building owners, directing them to correct the irregularities. He stated that “action will be taken against the buildings if the LDA notices are not implemented” and threatened to seal any structures that did not stop any illegal activity or respond to the notice.

    Director Shafqat Niaz Kang and Chief Town Planner Shakeel Anjum Minhas oversaw the operation. The Enforcement Wing and a large police presence were also present during the operation.

    Two officers were appointed and transferred as a result of LDA DG’s orders. While Assistant Director Muhammad Haris Ali, who was a Deputy Director in the Town Planning Wing, was posted to the Directorate of State Management (Private Housing Schemes) at his own pay scale, Assistant Director Tayyab Ali was appointed in the Directorate of State Management (Private Housing Schemes) at the Chief Town Planner LDA’s discretion.

  • Offices of illegal housing society sealed by CDA

    Offices of illegal housing society sealed by CDA

    The Capital Development Authority’s (CDA) Planning Wing sealed the management offices of an illegal housing society along the Islamabad Expressway on Thursday, preventing the sale, acquisition, and transfer of plots.

    Since neither the layout design for this housing society was approved nor the management received an NoC, the planning division of the CDA has already declared all stages of this housing society to be illegal.

    Along with physically shutting the office, CDA’s Director of Regional Planning also issued a letter in this regard, according to The News.

    According to the letter, despite warnings about the housing society’s management’s illegal behaviour, the management proceeded to sell and transfer plots, which prompted the authorities to take enforcement action.

    Due to violations of the CDA Ordinance 1960, ICT Zoning Regulations 1992, and ICT Building Control Regulations 2020, the housing society’s offices have been sealed.

    The PTCL, Islamabad Electric Supply Company, and Sui Gas Northern Gas Company have also been advised by the CDA planning wing not to offer their services during all stages of the private housing society.

    A dozen unauthorised housing societies in the Rawalpindi district were also sent notifications by the Rawalpindi Development Authority (RDA) in a similar development.

    New Metro City, Smart City, Prism Town, Capital Valley, Life Residencia, Seven Enclave, Manan City, Lake View City, Faha Fatima, Park Zameen Town, Hawks Melbourne City, and Kashmir Valley have all received notices from RDA’s Metropolitan Planning and Traffic Engineering (MPTE) Directorate.

    The Punjab Private Housing Schemes and Land Subdivision Rules 2010 were used to issue the notices. These societies have been requested by the RDA to produce mortgage deeds, surrender deeds, and NOCs. Otherwise, they will be the target of legal action.

  • Residential buildings make up 80 per cent of Pakistanis’ wealth: Study

    Residential buildings make up 80 per cent of Pakistanis’ wealth: Study

    Almost 80 per cent of the wealth accumulated by Pakistani households by the time they are 60 to 65 years old is made up of residential buildings, according to a recent World Bank study.

    Between the ages of 25 and 65, the net worth of the typical Pakistani household increases by 60 months’ worth of consumption (5 years).

    According to a DAWN report, residential housing makes up the majority of this growth, whereas other types of wealth like land, durables, business and farm values, and financial assets stagnate over time. Early in life, asset accumulation is slower; it picks up between the ages of 40 and 65.

    According to a study titled “Life Cycle Savings in a High-Informality Setting — Evidence from Pakistan” published earlier this week, financing elderly consumption will be a significant challenge in the future due to a combination of factors including population ageing, deteriorating family and village risk-sharing networks, and low formal pension coverage.

    When compared to other investment options, real estate and land are a safe bet, as evidenced by the fact that households save primarily in these areas. According to the study, housing may be a way to permanently store resources in a way that makes them difficult for other family members to steal or use against them.

    According to the study, it might also be a result of a lack of access to other reliable, safe, and high-return long-term saving options. Participation in alternative saving methods may be hindered by low levels of financial literacy, numeracy, and familiarity with formal banking institutions.

    The study emphasised that Pakistan has expanded financial inclusion much more slowly than other nearby countries and that these barriers must be removed.

    Despite being a safe investment, housing is relatively illiquid, which depletes funds for short-term consumption smoothing. Only 3 per cent of Pakistani adults (15 and older) report being able to rely on savings for emergency funds, while 49 per cent claim it is impossible to come up with emergency funds.

    According to 41 per cent of people ages 15 and older, family or friends are typically the primary source of emergency funds; 25 per cent report borrowing for medical expenses.

    Theoretically, policies that permit more real estate assets to be used as collateral for loans made through formal financial institutions could lessen the need for liquid precautionary savings and free up funds for retirement savings. However, these programmes might also promote excessive debt and result in evictions.

    Scarcity of other secure, liquid savings options may also restrict the income potential of self-employment. Although self-employed people have similar levels of education to wage workers, they are typically older. Nearly half of self-employed people lack education.

    Given that the majority of self-employed businesses are started with their own capital, the older age of the self-employed may indicate that the first working years are spent acquiring start-up capital. Only 11 per cent of people aged 15 and older, according to Findex surveys, borrow money to launch or grow a business.

    According to the study, expanding options for secure long-term savings outside of the housing through the use of government-sponsored or subsidised old-age savings instruments could lead to greater independence in old age and lessen the burden on younger families.

    The study found that the average net worth accumulation accelerates around the age of forty, roughly in the middle of the working years. We demonstrate that active saving likely plays a significant role, even though some of this accumulation may reflect patterns in inheritances.

    Around that time, household income growth starts to outpace household consumption growth, and the saving rate rises by 20 percentage points between ages 40 and 65. This suggests that people in that age range may benefit most from programmes designed to encourage formal saving.

  • Pakistan’s cement exports fell by 82.15 per cent in April 2022

    Pakistan’s cement exports fell by 82.15 per cent in April 2022

    Owing to unpredictable economic and political conditions, cement sales remained weak last month and between July and April 2021-22 (10MFY22), according to All Pakistan Cement Manufacturers Association (APCMA).

    The sector shipped 3.37 million tonnes of local cement in April 2022, down 17 per cent from 4.06 million tonnes in April 2021, while exports dropped 82.15 per cent from 877,163 tonnes in April 2021 to 156,613 tonnes in April 2022.

    As a result, overall cement sales including local and exports plummeted by 28.6 per cent in April 2022 to 3.52 million tonnes, down from 4.94 million tonnes in April 2021, as per APCMA data.

    North-based cement mills sold 2.8 million tonnes in domestic markets in April 2022, down 17 per cent from 3.3 million tonnes in April 2021. Exports from northern mills declined 75.22 per cent in April 2021, from 250,072 tonnes to 61,971 tonnes.

    According to data from the State Bank of Pakistan (SBP), banks granted Rs180 billion in housing loans in 10MFY22, with Rs57 billion disbursed over the same time. Housing loan applications of Rs409 billion had been received by banks.

    The political and economic instability of March had begun to deter investors in the construction industry, as seen by the APCMA’s domestic April sales figures.

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    Moreover, high lending rates of 12.25 per cent effective April 7 and the risk of further rate hikes will impact construction activity, while consumers are already under pressure due to increased living costs, with the CPI for April at 13.37 per cent.

    Owing to record high prices for steel bars, cement, and other construction supplies, people are also cautious to make new investments in building new homes.

  • FBR to regulate jewellers, accountants, real estate agents to curb money laundering

    FBR to regulate jewellers, accountants, real estate agents to curb money laundering

    The Federal Board of Revenue (FBR) will regulate and monitor businesses of jewellers, accountants, and real estate agents, and they will be asked to maintain records of their customers to check money laundering transactions.

    The FBR has issued Anti Money Laundering and Countering Financing of Terrorism Regulations for the Designated Non-Financial Businesses and Professions (DNFBRs) 2020.

    The government on Tuesday declared FBR as the AMU/CFT Regulatory Authority.” Every DNFBP shall be registered with the Board. The DNFBP shall provide any information or documentation that may be required by the Board for the purposes of registration or keeping the DNFBP registration up to date, including but not limited to criminal records of the senior management and beneficial owners.

    The record to be maintained and furnished by the Accountants, Real Estate Agents and Jewelers under these rules and as required by AML Act shall be subject to inspection by FBR, as laid down in section 6A(2)(f) of AML Act, who may be assisted by other law enforcement agencies.

    Any violation of any provision of these regulations shall be subject to sanctions issued under the AML Act, FBR added.