Real Estate Gets a Boost: Govt Ends 3% FED on First Sale

ISLAMABAD, Pakistan Real Estate News – Good news for property buyers and sellers. The federal government has ended the 3% federal excise duty (FED) on the first sale of property.

This decision comes after intense backlash from the real estate sector. Many developers and investors stated that the tax was harming the market.

What’s Happening Now

The removal of the FED is seen as a bold move to revive the estate industry. Experts say this change is likely to boost property transactions and attract new investments.

With the budget around the corner and rising concerns over interest rates, this step may bring relief and stability to the estate sector.

Why This Matters

For months, the estate sector has faced slow growth.

High property taxes and burdensome regulations made it hard for buyers. But this new decision brings relief and fresh hope. It is expected to increase property investment and attract more capital into the market.

Just ahead of the upcoming budget, this move sends a clear signal. The government wants to support growth and encourage development.

Lower taxes also ease pressure on interest rates, which were a concern for both investors and real estate agents.

Foreign Investors Are Watching Too

Meanwhile, One Homes, a British real estate firm, is entering Pakistan’s $30 billion student housing market. They have already developed projects worth $435 million in the country.

Now, they aim to construct more homes for students, particularly in major cities like Islamabad, Lahore, and Karachi.

This suggests that foreign investors remain optimistic about Pakistan’s estate investment opportunities, particularly in niche areas such as student housing.

But Not All Is Smooth: IMF Steps In

On the flip side, the IMF has raised concerns.

The global lender wants action against tax evasion in the real estate market. This is part of their talks to release a $1 billion loan to Pakistan.

So, while the FED relief is a win, the sector must also face tighter rules and increased transparency ahead.

REITs: Pakistan Real Estate News

In other good news, experts say REITs (Real Estate Investment Trusts) can help change the market.

These trusts enable small investors to pool their money and invest in large property projects.

This means more people can join, not just the wealthy. It also brings transparency and liquidity to the system.

REITs offer a new way to access estate investment opportunities.

A Sector Full of Promise — With the Right Moves

According to recent reports, Pakistan’s real estate market is full of untapped potential.

Yes, there are challenges. But with the proper steps, the sector can grow fast.

Ending the 3% FED is one of those steps. It signals a fresh start in 2025.

If the government continues this path — cutting red tape, supporting homeowners, and attracting foreign capital — the market can bounce back stronger than ever.

The estate forecast for 2025 looks hopeful if reforms continue.

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