KARACHI - Despite witnessing a drastic reversal in flight of capital from the country, the local property market has substantially gone down above 50 percent amid weak economic environment, ongoing stock market crisis and dearth in investing opportunities, sources related to land business disclosed this while talking to The Nation on Wednesday. In addition to above-stated facts, the property market might face tough time for another six months in anticipation of lack of investment from the genuine investors and sustained rise in cement prices. The domestic real estate business is being adversely affected by a number of external and internal negative developments ranging from global financial turmoil to inner political instability coupled with strained border situation which has put severe dent on the buying and selling activities of the said market. It has been learnt that in response to ensuing vulnerabilities and risks being posed to the investment in the property business and equity market, the big investors are no longer inclined to buy stake in real estate even if the current situation gets frequently persists the market can hardly see rare number of purchasers of getting land and ready/furnished bungalows in any reputed residential and commercial projects of the posh areas of metropolis. However, it is interesting to mention here that one can only find stock brokers in the real estate dealings who have been selling their commercial and residential properties under pledged stocks which they had held as collateral against banks' loan. Sources also said that the phenomenon of "flight of capital" had stopped since Pakistan's economy had started to show sign of the improvement to a year long macroeconomic deterioration and the government had arrested renowned persons involved in 'hundi' business. "The supply side of the financial inflows has been improved, sources said, adding that the financial inflow of workers' remittances is neither invested in stock market and unexpectedly nor utilized in real estate business". Sources further revealed, "Badly affected by the ongoing world financial recession the value of property in the Middle East and South East Asian market has been dropped by more than 50 percent. Billions of rupees of Pakistani investors cum developers have stuck in Dubai property market. No further investments in the Middle East real estate market especially in Dubai is expected to take place even many new projects have been shutdown. Investors are trying to mop up their capital from the real estate market of Dubai and bringing it back to the country. Earlier the amount of foreign exchange was being transferred to Dubai, Malaysia and Kuwait through clandestine channels and the major builders were making investment in the Middle Eastern countries like Dubai, Qatar, Abu Dhabi and Malaysia, in the Far East. These places were considered as the "top destinations" for investment ventures due to growing demand in construction sector, low interest rates and viable infrastructural facilities". The place of "Ajman" has been the most popular amongst Pakistani real estate investors for venturing there because of affordable cement and material building prices, sources added. Coming to the expectations of the property market experts who termed this trend as a "temporary reversal" of shift of capital the amount of foreign exchange is unlikely to invest in the real estate business but investors are anticipated to deposit their money in local banks account or further transfer to European countries despite the fact that the said countries have been facing economic downturn. There are not even 5 percent of real buyers available in the market. Genuine buyers are keeping themselves away from the real estate world due to the uncertainty being prevailed in the market due to the poor economic and political situation of the country, said Tahir Ali, a DHA based real estate broker. He revealed that DHA property market is facing a huge turmoil because of the lack of investment and lack of interest of the investors. It is because there is no clear sign of recovery perceptible in near future. Owners are selling their plots and bungalows against low prices, which can be calculated as even half of the peak time price. Moreover, this property crisis is heading towards worst state due to the political destabilization, worsening Indo-Pak relation and poor security condition of the country. Although property markets around the world have slumped sharply, the condition of local property market is no better than the rest, he further detailed. Notwithstanding, Muhammad Jamal, co-owner of a real estate agency is of the view that the local property market is slowly moving towards betterment. According to him, "this is the best time for investors to invest and the market is actually safe for investment." Our real estate crisis is interconnected with the real estate disaster around the world but overall the situation is better here as far as risk factor is concerned, he added. Meanwhile, a DHA member, who recently sold her plot, told The Nation that she was not satisfied with the work of the real estate agent she nominated. "The working style of the local real estate world is strange. When my agent arranged the meeting with the buyer, I met different persons. When the documents were submitted for transfer, I met with different party, and finally when I was called to sign the transfer document, I saw a new person." She further revealed that the selling amount written on the documents was not even half of the actual deal. When I asked the broker about this, he said it is to reduce the heavy tax amount. On the other hand, sources told The Nation that UAE based Emaar properties has suspended its mega project in Karachi due to the lack of investment hope and ongoing economic crisis which has left major developers financially unstable.