In This Post
– Top areas to buy plots in Islamabad and Rawalpindi
– Top areas to buy houses in Islamabad and Rawalpindi
– Top areas to rent houses in Islamabad and Rawalpindi
– Major developments in the twin cities
In Pakistan, the term “real estate” has almost become synonymous with the word “investment.” With a slew of reforms being introduced by the incumbent government, the country’s real estate sector witnessed considerable growth in 2019, according to industry experts. This especially holds true for Islamabad and Rawalpindi, as a plethora of game-changing developments are in the pipeline for the twin cities.
For our annual report, we have compared prices recorded in 2019 with those seen in 2018, to help you get an idea of how Islamabad and Rawalpindi property market fared over the past 12 months. Sales and rental trends pertaining to residential plots and houses in the twin cities have also been provided to help you make an informed decision.
Most Popular Areas with Plots for Sale in Islamabad and Rawalpindi
Bahria Town
Known as one of the poshest neighbourhoods of the capital, Bahria Town Islamabad claimed the top spot for the most searched-area when it came to buying plots in the twin cities. Spanning thousands of hectares along GT Road, Bahria Town, Islamabad is a mega real estate project with its boundaries extending all the way to Rawalpindi. The presence of a well-planned infrastructure, secure environment, and state-of-the-art facilities make it the near-default choice of almost every property investor in Islamabad.
5 marla plots in Bahria Town Islamabad saw their price increase by 4.4% on average in 2019 and were on the market for PKR 35 lakh. It is mainly because 5 marla plots are considered budget-friendly for the majority of buyers and investors.
On the other hand, the prices of 10 marla and 1 kanal plots dipped by around 1%, with prices hovering at PKR 61 lakh and PKR 1.1 crore respectively. One of the major reasons behind the negligible dip is the stability and investor trust associated with Bahria Town’s name. The project offers a wide range of facilities including robust infrastructure, complete utilities, and every type neighbourhood amenity imaginable.
Gulberg
Bahria Town was followed by Gulberg Islamabad, which remained the second-most searched area by property investors in the twin cities. Launched in 2005, Gulberg Islamabad is a comparatively new project in the capital city, approved by the Capital Development Authority (CDA). Similar to other new developments in the city, Gulberg is also located on the outskirts of Islamabad. Its prime location puts it only a 15-minute drive away from the Islamabad Airport and a 5-minute drive away from GT Road. Gulberg Greens and Gulberg Residencia are two of the neighbourhood’s latest sub-districts that are, however, still in their initial development stage but have garnered a lot of interest and attention from buyers and investors.
The majority of 5 marla plots in Gulberg are located in these newly developed sub-districts, where the possession of plots is still awaited. This could be one of the key reasons why the average price of 5 marla plots in Gulberg Islamabad saw a dip of 16%, standing at around PKR 21 lakh. Keeping in view the general market practices, once the possession is handed over, the prices of such properties usually witness an immediate hike.
Meanwhile, the demand for properties in developed parts of the locality caused the prices of 10 marla and 1 kanal plots in Gulberg Islamabad to go up by 8.3% and 16% respectively. A 10 marla plot in Gulberg was sold for an average of PKR 65 lakh, while the price for a 1 kanal plot hovered at PKR 1.3 crore in 2019.
Other Areas
Other popular areas to buy plots in Islamabad and Rawalpindi were DHA Islamabad, B-17, I-12, D-12, I-15, I-14, Top City 1, and E-12. However, E-12, I-14 and I-15 are three such sectors of the capital where the development has been restarted after almost a decade, which is why these the average price trend of these areas recorded some unexpected changes. The Capital Development Authority (CDA) has expedited the development of infrastructure and other living facilities in the E-12 sector of Islamabad, due to which its real estate value has increased. Sector I-15 is now also being developed on a priority basis by the current CDA management to cater to home buyers who are looking for low-cost and mid-range housing options. This has resulted in the value of smaller property options like 5 marla plots, which are available in abundance in the locality, to significantly go up. However, development activities haven’t picked up the pace in Sector I-14, which is why prices of mid-sized properties like 10 marla plots in the neighbourhood have reported a drop.
Most Popular Phases with Plots for Sale in Bahria Town Islamabad
According to Zameen.com’s search trends, people mulling real estate investments in Rawalpindi and Islamabad property market mostly showed their interest in Bahria Town Islamabad’s Phase 8. The development work of Phase 8 in Bahria Town is in full swing. The well-planned phase is further divided into blocks A to E, E 1-4, F 1-5, G, H, I, J, K, L, M, N, Overseas-1, Overseas-2, Overseas-3, Overseas-4, Overseas-5, Overseas-6, Overseas 7, and Block P. Full and partial possession is available for completed blocks, while other blocks are also nearing completion. A signal-free corridor, which is known as Bahria Expressway, has been constructed to facilitate residents of Phase 8. It links Bahria Town’s Phase 8 to GT Road, reducing the distance to just 5 minutes, making the commute from Bahria Town to other parts of the city incredibly convenient. One of the key highlights of Phase 8 for investors is that only around 35% of the land has been allocated for housing purposes, while the remaining 65% of the land has been reserved for the construction of public spaces. The reserved area is scheduled to be converted into a rest and recreation zone, which will significantly enhance the quality of living in Phase 8 of Bahria Town. These features combined have positively impacted the value of real estate in the phase.
Bahria Town’s Phase 8 is now being extended, however, the development is in its initial stages. Also, most of the land in this newly developed area is awaiting possession. These two factors have marginally brought down the average rate of 5 marla, 10 marla, and 1 kanal plots up for sale in Bahria Town’s Phase 8. That’s why the majority of properties for sale in the area are currently available at relatively low rates. For instance, a 5 marla plot in the upscale neighbourhood can be purchased for as low as PKR 22 lakh, while the starting price of a 10 marla plot in the area is around PKR 50 lakh. The asking price of 1 kanal plots in Bahria Town Islamabad Phase 8 starts at PKR 75 lakh. Some parts of Phase 8 are still under development, which is why it is considered ideal for long term investment as prices are expected to go up as the development progresses.
Phase 7 followed Phase 8 as the second most sought-after phase for plots in Bahria Town Islamabad. The availability of many neighbourhood facilities like 24/7 electricity, gas and water supply, well-carpeted roads and beautiful landmarks only adds to the charm of the area. The development of Phase 7 is progressing at a satisfactory pace, which can be another major reason behind the area’s increasing popularity.
Since Bahria Town Phase 7 is developed a bit more than Phase 8, buying properties in this phase requires a comparatively higher amount. For instance, the asking price of 5 marla plots in Phase 7 starts at PKR 38 lakh, whereas 10 marla residential plots can cost around PKR 58 lakh at the very least. Similarly, you can invest in 1 kanal plots in the area for as low as PKR 90 lakh.
Home to an awe-inspiring infrastructure, wide streets, green spaces, parks, and astonishing monuments, Bahria Town Phase 3 has also made it to the list of most popular investment avenues in the twin cities. Phase 4 and Phase 2 were the next best options to buy plots in Bahria Town.
Most Popular Areas with Houses for Sale in Islamabad and Rawalpindi
Let’s take a look at the top areas for buying a home in the twin cities that have performed outstandingly over the past twelve months.
Bahria Town
Bahria Town again tops the list of most searched areas by home buyers in Islamabad according to Zameen’s data. Reflecting the serene lifestyle of the capital and taking it up a notch, Bahria Town boasts neatly aligned and contemporarily designed houses, which uplifts the value of the neighbourhood and gives it a modern look. With 24/7 power backup and supply of other necessary utilities, this posh locality offers a quality lifestyle unlike any other. Due to proper planning, residential properties are complemented by 50 to 80-metre wide road links present throughout the neighbourhood, adding to the convenience of commuters.
In light of the increase in demand for smaller and mid-sized residential units in the neighbourhood, a 5 marla house for sale in Bahria Town Islamabad was sold for an average price of PKR 1.1 crore in 2019, witnessing a jump of 14.8%. The average price of a 10 marla residential unit increased by 7.3%, hovering around PKR 2.3 crore. On the other hand, the value of a 1 kanal house for sale in Bahria Town Islamabad was recorded at PKR 4.3 crore, going up by 2.6%. The increase in asking prices of the three most popular types of houses, according to area, indicates stability and investor confidence in the project.
DHA
DHA Islamabad emerged as the second most-searched neighbourhood. Even though the area is located away from the city centre, commuting from DHA Islamabad isn’t a big hassle, thanks to the availability of mini vans, taxis, rickshaws and app-based cab services. Facilities in DHA Islamabad include top-notch educational institutions, shopping centres, and medical facilities.
DHA Islamabad has, over the past couple of years, witnessed the construction and extension of many new subdistricts, most of which are still in their initial stages of development. DHA Valley is an important example in this regard. The housing society mostly features single and double-storey residential units measuring around 5 and 10 marla, where the selling price of 10 marla houses in DHA Islamabad has gone up by 12%, with the average price touching PKR 2.8 crore. Meanwhile, 5 marla houses for sale in DHA Valley Islamabad remained unchanged at PKR 35 lakh.
Similar is the case with a 1 kanal house for sale in DHA Islamabad, the value of which has risen by 7.8%, touching PKR 4.8 crore.
Other Areas
Situated in the CDA Zone-1, Sector G-13 is another popular sector for buying plots in Islamabad. The sector lies between Kashmir Highway and Nazim-ud-din Road. As compared to 2018, the sector is now more developed, and the value of properties has reported an increase. Likewise, Airport Housing Society also made it to the list of top areas with residential plots for sale in Islamabad. A number of well-developed societies have popped up around AECHS in recent years, adding to the significance of the neighbourhood. The society is divided into four sectors. In sectors 1, 2 and 3 of the area, you’ll mostly come across spacious residential units. On the other hand, sector 4 features smaller houses that are both furnished and unfurnished along with residential and commercial plots.
E-11 also stands among the popular residential neighbourhood in the capital city among investors. This posh locality is further divided into various sub-districts, some of the most important ones include Golra, FECHS, MPCHS and Al Meher Colony. Property investors in E-11 usually come across three popular property sizes including 5 marla, 10 marla and 1 kanal plots. Some other areas that have successfully appeared in the list of the top-searched localities to buy homes in Rawalpindi and Islamabad property market include Adiala Road, I-10, F-10, Gulshan Abad, Ghauri Town. The overall price trends for houses in the Islamabad and Rawalpindi property market have not undergone any major changes during 2019, but a notable increase was observed in the value of 10 marla houses due to a constant increase in their demand.
Most Popular Phases with Houses for Sale in Bahria Town Islamabad
One of the key reasons that Bahria Town Phase 8 appeared as the top phase in the neighbourhood to buy homes is affordable property prices.
As discussed above, Phase 8 is comparatively a newer sub-district of Bahria Town, which is being developed rapidly. This phase has many 5 marla, 10 marla and 1 kanal houses. You’ll mostly come across single-storey houses in Awami Villas, Bahria Town, which is a newly-developed locality that aims to provide low-cost units using prefabricated housing technology.
The cost of 5 marla houses in the area starts at PKR 45 lakh, for 10 marla residential units, prices start at PKR 98 lakh. If you’re looking for 1 kanal units in Bahria Town Islamabad Phase 8, you need, at least, PKR 2 crore.
Phase 3 was the second most searched phase with houses for sale in Bahria Town Islamabad for 2019. It is perhaps one of the most developed phases, which makes it relatively expensive. Other factors contributing to the phase’s immense popularity are robust infrastructure, contemporary housing units and plenty of recreational spots.
The buying trend for a 5 marla house starts at PKR 1 crore. You can buy a 10 marla house in the area for as low as PKR 1.9 crore. If you desire a more spacious dwelling, then you can explore 1 kanal houses in Bahria Town Phase 3; prices for these units begin at PKR 3.5 crore.
Bahria Town Phase 4 also turned out to be among the top choices of home buyers in Islamabad and Rawalpindi. Ideally located alongside the banks of Sawan River, Bahria Town Phase 4 lies in proximity to two of the most important road links in the city: Islamabad Expressway and Grand Trunk (GT) Road, which makes commuting to other parts of the city very convenient. Well-developed and equipped with good facilities, Phases 2 and 7 also made it to the top spots.
Most Popular Areas with Houses for Rent in Islamabad and Rawalpindi
Let’s take a look at how well has the rental real estate market of some of the most searched localities in the twin cities performed over the year.
According to the above-given data, the posh locality of Bahria Town has once again taken the lead and appeared as the first choice of people looking for rental houses in Islamabad and Rawalpindi.
Rents of houses in Bahria Town didn’t experience any major changes, as compared to 2018. For instance, 5 marla rental houses in Bahria Town, which are smaller property options with affordable monthly rents always remain in high demand. After experiencing a small hike, the monthly rent of a 5 marla residential unit in Bahria Town averaged at PKR 32,500 in 2019. With a nominal increase, 10 marla rental homes in the neighbourhood were offered for PKR 65,000 per month on average. Meanwhile, a 1 kanal house in Bahria Town can be rented out for around PKR 1.2 lakh. It has also been observed that rental homes in some of the most rapidly developing sub-districts of Bahria Town including Phase 8 and Safari Villas are gaining popularity and value with time, which means average rental prices in the neighbourhood may go further up.
F-10 Islamabad was the second most popular area among people seeking rental properties in the twin cities. The neighbourhood is found at a peaceful location, far from the hustle and bustle of the city. Some of the most popular rental options in F-10 Islamabad are 5 marla, 10 marla and 1 kanal houses. The rental units available in the area are both furnished and unfurnished. Moreover, F-10 Islamabad is surrounded by key road links in the city including Kashmir Highway, Margalla Road and Nizam-ud-din Road, to name a few, making it an ideal choice for renters, which is why renting a property in the locality can be a bit costly. For example, a 5 marla rental house in F-10 is priced around PKR 50,000 per month. On the other hand, the average rent for bigger homes, including 10 marla and 1 kanal units in F-10 Islamabad, is around PKR 83,000 and PKR 1.9 lakh respectively.
Along with the above-listed areas, G-13, DHA Islamabad, F-8, F-7, E-11, I-8, F-11 and G-11 also came out as popular localities to rent houses in Islamabad and Rawalpindi.
Major Developments In the Twin Cities
Let’s take a look at some major developments in Islamabad and Rawalpindi that may directly or indirectly influence the performance of the property market in the twin cities:
- Capital Smart City
- Beautification of Rawalpindi
- CDA Restores Development In Stalled Sectors
- Infrastructure Developments In the Twin Cities
Capital Smart City
Envisioned to become the first smart city in Pakistan, Capital Smart City will feature smart infrastructure, secure living and contemporary accommodations. The model of the city is based on the principles of eco-friendliness and self-sustainability in mind. The project is ideally located on the M-2 Motorway, conveniently linked with the twin cities of Islamabad and Rawalpindi. It also lies in proximity to the eastern route of the CPEC and the new Islamabad International Airport. The first ballot for Overseas and Executive Blocks of Capital Smart City was held in December 2019 at the project site, which means things are headed in the right direction.
Beautification of Rawalpindi
The Rawalpindi Development Authority (RDA) has planned to carry out a comprehensive beautification project on the city’s four major arteries and the age-old markets, food streets lining those roads. According to the plan, the project will be set on the junction of road links connecting Murree Road with Liaqat Bagh Road, Bhabra Bazar with Haweli Subhan Sang, and Lal Haweli with Bohar Bazar.
CDA Plans to Restores Development In Stalled Sectors
The Capital Development Authority (CDA) has finally announced its plan to develop stalled sectors of Islamabad including E-12, I-14 and I-15 that remained neglected for a long time as there has been no progress for almost a decade. This must have been a piece of much-awaited news for those who already have invested in these neighbourhoods of the capital.
Infrastructure Developments In the Twin Cities
As per the latest developments, the CDA has decided to improvise the infrastructure of the capital by adding five new interchanges to ensure the smooth flow of the traffic. These five new interchanges in Islamabad will be developed at different avenues including the 7th Avenue, 10th Avenue, 11th Avenue and 12th Avenue of Kashmir Highway and one on the 9th Avenue of Khayaban-e-Iqbal. These interchanges will connect the north end to the south end of the capital. Moreover, there is another great news for the residents of Rawalpindi as construction work on the city’s very own Ring Road project will begin soon. Expected to be completed at a cost of over PKR 70 billion, the Rawalpindi’s Ring Road has been forecasted as a game-changer for the city’s infrastructure. It is going to be over a 50-kilometre long highway featuring several intersections for the inner-city traffic. Rawalpindi Ring Road will connect Rawat in the city’s southeast region with Tarnol (M2 motorway)
Conclusion
Although fluctuations have been observed in Islamabad and Rawalpindi property market, they’ve had a limited impact on investment. Property trends indicate growth, for the most part. So far, Bahria Town, DHA and Gulberg have appeared as the top contenders for buying property in Islamabad and Rawalpindi. Noteworthy infrastructure development like the Ring Road Rawalpindi project in Rawalpindi, along with the construction of new interchanges, is also expected to increase the significance of the real estate of the twin cities among investors, similar to what was observed in the case of Ring Road project in Lahore. The restoration of construction work in the stalled sector of Islamabad by the Capital Development Authority can also be a game-changer for the local property market. In light of all these developments, positive trends are expected to continue in 2020.
Echoing the positive findings of the annual report, Zeeshan Ali Khan, CEO of Zameen.com, commented, “On the whole, Islamabad’s real estate market has remained dominated by two segments: the downtown, which is now more or less synonymous with the commercial hub of Blue Area, and then we have the real estate behemoths expanding over the periphery of the city, such as Bahria Town, Gulberg Islamabad and DHA Islamabad-Rawalpindi,” he added, while singling out Gulberg. “The project has entered the Islamabad property market with full force. Its success can be attributed to the fact that it’s a semi-government project by the Intelligence Bureau, so there’s an unrivalled level of trust among buyers.”
Khan further shed light on other major projects that have helped attract foreign direct investment “The capital city remained a top favourite among expatriate Pakistanis, offering many lucrative investment opportunities. Capital Smart City (CSC) is an important example in this regard. The project aims to become the first-ever smart city to be developed within Asia. Plus, CSC has an “Overseas Block” that has particularly been designed for overseas Pakistanis.”
“As the CDA is set to relax its construction by-laws for high-rises, which were previously very restrictive, developers are eyeing downtown areas for vertical expansion. Meanwhile, horizontal development is rapidly taking place in gated housing communities along the city’s major expressways. In my opinion, the latter option seems more practical. That’s one of the reasons why one of our own mega projects, Zameen Ace Mall, is being built in DHA Islamabad-Rawalpindi Phase II. The primary aim of the project is to promote the culture of mixed-use developments in the country with a view to optimizing available space,” he added.
“All of these factors, coupled with the capital’s impeccable reputation for providing its residents robust infrastructure, security and top-notch lifestyle, makes Islamabad a veritable magnet for interested buyers and investors,” Khan concluded.
Moreover, he pointed out how Pakistan’s real estate was no longer a short-term market, thanks, in particular, to the revised taxation system.
“Sales activity may have slowed down a little bit in the past, but transactions have started to pick up the pace. We’re headed in the right direction. Most deals involve genuine buyers and investors who are looking for homes or investment for a longer period. It’s no more about easy money; people are in it for the long haul.”
Khan also weighed in on the positive impact of the incumbent government’s measures that have helped attract foreign investors and developer groups to Pakistan. He cited the example of “Eighteen,” which is a joint venture of Egypt’s Ora Development Group and Pakistan’s Saif Group.
“The ongoing reforms have increased foreign direct investment. Like Eighteen, we can expect more international players entering the Pakistani real estate market in the coming years.”
While Khan appreciated the changes, he stressed on the importance of improvement and regulation in the country’s property sector.
“Pakistan needs stronger regulations to bring stability and sustainability in the real estate industry. There is a huge demand from low-income groups that requires the attention of authorities,” he continued.
In this regard, Khan appreciated the Naya (new) Pakistan Housing Programme as much-needed move for the country.
“It’s a brilliant effort. The target of building five million houses in five years may be ambitious, but even if we achieve 20 percent of it, that would be a great start. It would be a huge success, in my opinion.”
Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Zameen.com, and not representative of actual real estate transactions conducted in Islamabad-Rawalpindi. All prices quoted on the portal are subject to change without notice.
