The Punjab government has introduced several regulatory reforms aimed at streamlining the real estate sector, enhancing transparency, and promoting sustainable urban development.​

Key Regulatory Changes:

1. Crackdown on Illegal Housing Schemes: The government has finalized land-use and zoning plans for 32 districts, making it illegal to establish housing schemes or commercial projects on land not approved in the master plans. This measure aims to curb unauthorized developments and preserve agricultural land.

2. Property Tax Reforms: Significant reforms in the property tax system have been unveiled, including exemptions for affordable housing. These changes are expected to boost the real estate sector by encouraging investments and facilitating property transactions.

3. Amendments to the Affordable Housing Policy: The Punjab Housing Department has revised its Affordable Housing Policy, offering additional incentives such as allowing more flats, increased saleable area, reduced parking requirements, and better floor area ratios (FAR). These amendments aim to make affordable housing projects more viable for developers and accessible to the populace.

Impact on the Real Estate Market:

These regulatory measures are designed to promote organized urban development, protect consumer interests, and stimulate investment in the real estate sector. By enforcing stricter zoning laws and offering tax incentives, the government seeks to create a more transparent and investor-friendly environment.​

Influence of Bank Savings Account Trends on Real Estate Investments:

The prevailing trends in bank savings accounts, particularly interest rates, have a direct impact on investment decisions in the real estate market.​

• Low-Interest Rates: When banks offer low-interest rates on savings accounts, investors often seek alternative avenues with higher returns, such as real estate. The potential for capital appreciation and rental income makes property investment an attractive option during periods of low bank returns.​

• High-Interest Rates: Conversely, higher interest rates on savings accounts may lead investors to prefer the safety and liquidity of bank deposits over the relatively illiquid nature of real estate investments. This shift can result in reduced capital inflow into the property market.​

Understanding these dynamics is crucial for investors to make informed decisions, balancing their portfolios between liquid assets and long-term investments like real estate, based on prevailing economic conditions and personal financial goals.