Lake City offers possession in M7 (b)

Lake City offers possession in M7 (b) – where is the society headed?

Lake City is one of the most sought after housing projects on Raiwind Road and now enjoys excellent access because of the development of Alternate Route. Possession was handed over for 5-marla plots in Block M7 (b) of the society on Monday, which probably means that the block will now be approached by home buyers instead of investors.

Usually, property prices in a particular locality experience a jump after possession, and the same can be said for M7 (b). Please the see table below to have an idea of prices before and after possession:

Plot category	Price range before possession	Price range after possession
5 marla	PKR 3,500,000 to PKR 4,300,000	PKR 3,800,000 to PKR 4,500,000

As you can see that prices of 5-marla plots in the locality have increased PKR 200,000 to 300,000 after possession and it is expected that these plots will hit PKR 5,000,000 mark within 6 months or so.

Which blocks are next in line for possession?

It is expected that Blocks M2 (a) and M3 (a) will get possession in September, however, no official statement has been given by Lake City in this regard.

Development work is almost complete in both blocks, located along the Alternate Route. Property prices have already increased manifold in these blocks, but there is still a room for further growth. The table below will give you an idea of current prices in the said blocks:

Block M2(a)
Plot category	Market Price
10 marla	PKR 7,000,000 to PKR 8,000,000
Block M3(a)
12 marla	PKR 7,500,000 to PKR 8,500,000
14 marla	PKR 8500,000 to PKR 9,000,000
1 kanal	PKR 10,500,000 to PKR 12,500,000

On the other hand, possession for 5-marla plots will be handed over in Block M7(c) within 6 months. Currently, the market value of on-ground plots in the block is PKR 3,500,000 and you can expect a price surge upon possession for this particular plot category.

Though 5-, 7- and 10-marla plot files are up for grabs on instalments in Lake City, if you are still on the lookout for on-ground plots, you need to head to M8, where 5- and 7-marla plots are available on cash payment for PKR 3,000,000 to 3,500,000 and 3,800,000 to 4500,000 respectively. However, the area is undeveloped and Lake City will take some years to complete development work in the block

Via Zameen.com

Real estate set to win biggest tax amnesty

The government on Thursday agreed, in principle, to offer the biggest ever tax amnesty scheme in the country’s history, which will whiten a whopping Rs7 trillion untaxed and black money currently stashed in the real estate sector

Finance Minister Ishaq Dar and representatives of the real estate sector discussed the broader contours of the amnesty scheme, which will be implemented by either promulgating a presidential ordinance or introducing a bill in parliament, said a government official. It was the third round of talks in last four days.

After the talks, Dar told media that the next meeting will be held on Wednesday in which real estate sector representatives and FBR officials will share their respective property valuation rates. “On Wednesday, the two parties will reach a consensus as things are going towards positive direction,” he said.

Real estate sector representatives would bring their own property valuation rates of 18 main cities and FBR officials will share their rates. On the basis of both the rates, valuers will work out ‘consensus rates’. These determinations then will become the base for giving amnesty on past transactions and calculating taxes on future transactions, said the officials.

Dar ducked three repeated questions on whether the government was going to give another tax amnesty scheme and left the venue. It will be the tenth amnesty scheme in the history of the country and the third of the PML-N government in last as many years. The government’s last tax amnesty scheme to traders miserably failed, as it could bring in only 9,090 traders in the net against the claim of over one million.

The need for the tax amnesty scheme arose after the government brought legal changes to determine fair market value of the properties by amending Income Tax Ordinance through Finance Act 2016. However, a move that was initially aimed at capturing actual income gains from the property transactions would end up whitening about Rs7 trillion untaxed and black money currently parked in the real estate sector.

The ill-conceived changes in the tax law immediately created two problems, putting a question mark over trillions of rupees transactions carried out till June 30 and the fair market value of the future transactions, said a senior government official who attended the negotiations.

A government official told The Express Tribune that it has been decided that the government would not ask the source of income of the past transactions from investors.

Abdul Rauf Alam, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said that this issue was not only the issue of real estate and builders associations but it was the issue of every businessperson, industrialist, importer, exporter and bureaucrat.

Since the beneficiaries of the schemes are from all segments of society, the scheme is expected to pass through all the legal obstacles, said FBR officials.

“The big players in speculative business in real estate and capital markets are the beneficiaries of policies of appeasement,” said eminent tax expert Dr Ikramul Haq. He said these big players, in between politicians and corrupt bureaucrats, get their share courtesy a few leading tax experts who in connivance with some stalwart in FBR provide support to tax evaders. Haq added that the whitening of assets by compromise is a great fraud depriving the country of trillions of rupees in taxes.

According to the broader contours of the likely amnesty scheme the government would settle the past property transactions by charging a fixed tax of 4% to 5% of the price differential between the deputy collector rates and the new rates, which will be determined by next week.

Published in The Express Tribune, July 22^nd, 2016.

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Pakistan rated among top emerging economies

Another international ratings agency has put Pakistan among top emerging South Asian economies because of continuity of policies and political stability.

2015-16: China helps as FDI in Pakistan surges 38.8%

Atlantic Media Company (AMC) of the United States has ranked Pakistan as a comparatively stronger economy in South Asian markets and expects the country will grow rapidly during the days ahead.

According to an AMC report, Pakistan government’s investment in infrastructure and other development projects has caused the country’s gross domestic product to grow.

The economy: All is not well

“It is acknowledged internationally that Pakistan is surfacing as a ‘market leader’. Current economic conditions of Pakistan are attracting foreign investors,” AMC noted.

It said last month the American stock index provider MSCI also included Pakistan among 10 most emerging economies in the world.

AMC pointed out that the security situation in Pakistan had also improved, resulting in economic stability.

China’s Premier says world should step up economic policy coordination

Moreover, $46 billion investment in the China-Pakistan Economic Corridor would help Pakistan overcome chronic problems like power crisis and unemployment.

It said the KSE 100-share Index had been performing the best among Asian markets during 2016 and was ranked as world’s fifth best stock market.

Published in The Express Tribune, July 22^nd, 2016.

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Fiscal plan: LDA budget approved

LAHORE: 

The Lahore Development Authority (LDA) governing body on Thursday approved Rs93.48 annual budget of the LDA and its subordinate agencies – the Water and Sanitation Agency (WASA) and the Traffic Engineering and Transport Planning Agency (TEPA).

Governing body member Khwaja Ahmad Hassaan chaired the budget session, attended by MPAs Baoo Muhammad Akhtar from Lahore and Rana Muhammad Arshad from Nankana Sahib, LDA Director General Nabeel Javed, WASA Managing Director Naseer Ahmad, TEPA Chief Engineer Saifur Rehman, Chief Metropolitan Planner Waheed Ahmad Butt and LDA Finance Director Zaheer Asghar Rana.

Resources of the LDA, the WASA and the TEPA have been estimated at Rs93.48 billion. Of this, Rs80 billion has been earmarked for development works in Lahore, Sheikupura, Nankan Sahib and Kasur.

LDA (Urban Development Wing)

Resources available to the LDA (UD Wing) during 2016-17 have been estimated at Rs71.86 billion. Development expenditures of Rs68 billion are planned.

Rs56.1 billion is to be provided by the provincial government, for executing various development projects under the Annual Development Programme and deposit works notably the Lahore Orange Line Metro Train project.

Rs5.82 billion has been allocated for development activities in LDA housing schemes. This includes Rs1.52 billion for LDA Avenue-I; Rs350 million for the construction of roads, water supply and sewerage lines in the Finance and Trade Centre, Johar Town; Rs350 million for LDA City; and Rs3.5 billion for development projects in various LDA housing schemes. The projects include construction of an underpass at the railway crossing near Gurumangat Road, Gulberg; remodelling of junctions and U-turns at Maulana Shaukat Ali Road; Khayaban-i-Firdousi; and Khyban-i-Jinnah.

Rs449 million will be spent on the construction of LDA office buildings in Johar Town and Sheikupura and official residences for employees. Rs30 million will be spent on the construction of a pedestrian bridge in front of Girls College, Gujjarpura.

Rs3.63 billion has been allocated for new projects in Lahore. These include Rs2.28 billion for the construction of Defence Road Flyover, Sharaqpur Bypass, Southern Bypass and Kala Shah Kaku Expressway.

A sum of Rs3.72 billion has been allocated for the widening of Canal Bank Road and construction of Chobucha Underpass.  Rs400 million will be spent on the  construction of an underpasses on Sheikhupura-Gujranwala Road and Sheikhupura-Hafizabad Road, Sheikhupura. A hockey stadium will be built in Nanakana Sahib at a cost of Rs500 million.

Rs3.37 billion has been allocated for the Orange Line Metro Train project, allied works and security services.

Widening and improvement of Bedian Road, Burki Road and adjoining roads will cost Rs5.84 billion. Remodelling of junctions along Multan Road from Chauburji to Multan Chungi will be carried out at a cost of Rs5.12 billion.

A hockey stadium will be constructed in Sheikupura at a cost of Rs240 million.

WASA

The agency excepts receipts of Rs18.77 billion during 2016-17. It will spend Rs18.84 billion, including Rs9.81 billion, on development schemes. Rs5.49 billion has been reserved for ongoing development schemes.

TEPA

The agency will have Rs2.855 billion at its disposal; its expenditures have been estimated at Rs2.54 billion, including Rs2.19 billion for development schemes.

Rs134 million will be spent on the construction of Kasur Sports Complex. Rs745 million has been allocated for the construction of a flyover at Kacha Jail Road.

Published in The Express Tribune, July 15^th, 2016.

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Lda city: Buyers can check payment info online 

LAHORE: 

The Lahore Development Authority has uploaded information of plot file holders in LDA City, its latest real estate project in the city, on its website.

A spokesperson for the authority said the step had been taken to ensure transparency and to boost buyers’ confidence in the authority’s operations.

He said those holding files of plots in the new scheme could check their payment details and remaining balance by entering their Computerised National Identity Card (CNIC) number and file number at the LDA website.

Separately, the LDA governing body decided to continue a ban on temporary commercialisation in LDA Avenue-I, Jubilee Town and Mohlanwal Housing Scheme.

It decided that the schemes would be developed in accordance with their original development plans.

Commercial activities would be allowed only in the commercial zones identified in the original plans for these schemes, it decided.

Published in The Express Tribune, July 12^th, 2016.

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