Re: Property mania in Pakistan..
U know guys, may be i am wrong about this, but i think
Stock market ups and downs are mostly because of foreign investments. So, when KSE Index started going up everybody tried to jump into the boat, due to higher demand shares prices also went up, Then all the foreign companies started taking out their money for profits(which i dont blame them, caz who does not want to make money, would't u) and then all the ppl like us, got panicked, and started taking there money out. and stock market crashed.
After the crash, all of us started doing the same thing, which we are good at. blaming the Govt. Even PM kept telling us, dont invest bluntly or dont invest every penny that we got. But we did not listen, and at the end, when it was going all down the hill, we woke up and started cursing our govt.
Now the real estate, i think, every time when govt. drops down the interest rate in savings accounts, ppl tend to take out their money and buy property. And i think, there are couple of other factors too, like easy excess to home mortgage, and all the money flow that came into pakistan after 9/11.
So untill, the interest on saving accounts are low, we will see higher prices, the day they will bump up the interest rate, ppl who bought properties for business purposes will loose money.