What Should Overseas Pakistani Must Know Before Buying A Plot In Karachi

Overseas Pakistani

Karachi is the economic hub of Pakistan, contributing significantly to the country’s GDP and is home to various industries, including finance, textiles, manufacturing, shipping and services, as a cosmo political city offers around the globe. The city offers various investment opportunities across various real estate businesses. The continuously increasing population and urbanization produce residential and commercial property expansion, providing a favorable environment for overseas Pakistanis to make real estate investments. The government invests in infrastructure development projects, including road networks like the Malir bypass, to boost Karachi’s expanding real estate market. Bahria Town Karachi and DHA City Karachi are the biggest projects under construction, and there are a lot of construction work opportunities for contractors in DHA Karachi. Over the years, Karachi has experienced an upward trend in property prices, resulting in potential capital appreciation. The demand-supply dynamics, infrastructure development, and economic growth contribute to the city’s long-term appreciation of property values. Karachi’s rental market is active, and investing in properties for rental purposes can provide a steady income stream. The city attracts a large number of students, professionals, and expatriates who seek rental accommodations. However, it is crucial to exercise caution and ensure that the plot you intend to purchase is legally authorized and does not fall under any irregular or disputed category.

As an overseas Pakistani, you must understand basic government laws and regulations before buying a plot in Karachi. Some of them are:

Property Ownership Laws

Overseas Pakistani have the same property ownership rights as resident Pakistanis. As an overseas Pakistani, you can purchase and own residential and commercial properties in your name or through a legal representative.

National Identity Card for Overseas Pakistani: 

As an overseas Pakistani, you need a valid NICOP or Smart NICOP card to facilitate property transactions. It serves your identification and is required for property registration and other legal processes.

National Identity Card for Overseas Pakistani: 

The transfer of property ownership involves the execution of a sale deed or transfer deed. This document must be properly drafted, executed and registered with the relevant authorities, such as the sub-registrar’s office or the relevant land authority.

Capital Value Tax (CVT): 

Similar to resident Pakistanis, Overseas Pakistanis are also subject to CVT. The Government of Pakistan imposes this tax on property transactions, including selling, purchasing, or transferring real estate. The CVT rates vary depending on the location and value of the property. It is advisable to consult with a tax professional to understand the applicable rates and requirements.

Repatriation of Funds:

Under certain conditions, The State Bank of Pakistan allows the repatriation of funds overseas Pakistani invest in real estate. If you decide to sell the property, sale proceeds can be repatriated after providing necessary documentation, such as a sale agreement and evidence of the source of funds used for the purchase.

Several other factors must be considered before buying a plot in Karachi and constructing a plot in Karachi, including but not limited to:

Legal Documentation:

Before buying any property, one must ensure that said property has clear and legal documentation. Verifying the ownership documents, title deed and land record to avoid unwanted surprises and legal issues at a later stage.

Land Status and Zoning:

Before investment, one must have clear information if the land is designated for residential, commercial or industrial purposes. 

Development Plans:

Inquire about any future development plans or projects that may impact the value or usage of the plot. Check if any proposed infrastructure projects, roads, or commercial developments nearby could affect the property’s desirability.

Security and Safety:

Consider the security situation in the area. Research the crime rates, presence of security measures, and overall safety of the neighborhood before making any real estate investment decision.

Local Regulations:

Local regulations and laws related to land and property ownership in Karachi must be well understood to avoid any later surprises, including but not limited to property registration, transfer of ownership etc.

Due Diligence:

Thorough due diligence before finalizing the purchase, including physical site visits, inspection, background checks and verification of necessary documents from the concerned government department, is a MUST. It’s crucial to undertake proper research and seek professional advice to ensure a smooth and secure transaction when buying a plot in Karachi as an overseas Pakistani.