Islamabad’s I-16, what does it offer for investors?

Islamabad’s I-16 was launched some time ago, but in the last few months it has caught everyone’s attention as the Capital Development Authority (CDA) has announced that it would ensure timely development of the sector.

As a part of its anti-encroachment drive, the CDA has removed a number of land encroachments from this sector because of which the people are now optimistic that the sector will be making headway. There are a number of reasons why this project is a good option for investment now.

Development status

Sector I-16 is close to Islamabad International Airport (IIA). Close proximity to the IIA will allow this project to emerge to prominence. According to Masaud Iqbal from Ocean Estate & Builders, there is news of construction on Capital Highway from Kashmir Highway to the IIA. This direct access will answer all the major grievances of the people who already reside here or plan to. Masaud has added that as of now, all residents of I-14, I-15, and I-16 have to access their sectors from the main GT Road.

There’s no doubt then that this road is pretty busy and not in a good condition. As a result of this, many people who had invested in the project to build their houses, are now holding onto their property, as they wait for the road to be constructed.

Apart from this, the internal development of the sector has been completed since a few years now. All utility connections except for water have been completed. However, Rana Asif from Shehryar Estate Services is of the view that the CDA will soon provide a water supply connection to the sector, which will rid people of the hassle of water boring, which they have to do on a regular basis.

Roads, streets and plotting has already been done, and a number of houses have been constructed, as possession is available. Previously, more focus was being put on the construction of apartments in the sector as more investors seemed interested. However, with the operation of the IIA, the project is now attracting interest from everywhere.

Market conditions

The project has good prospects, and especially when newer developments will take place, the project is bound to gain momentum. According to Asif, the prices of plots (5-, and 7-marla) have increased by 50% in the last year alone. He expects that prices will further increase in the coming months.

The price of a 5-marla residential plot ranges from PKR 3,000,000- PKR 4,000,000. With new infrastructural developments and construction, another 50% increase can be expected for the next year. Atif Soori, a seller in the area sees great potential for investment here. He is selling his 4-marla apartment because of personal reasons but opines that if it wasn’t for this, he’d hold on to his property for at least a year or two and sell it at a much higher price because of Capital Highway that is going to provide the necessary accessibility to this project.

Our experts are of the view that the new government would have to introduce a number of key reforms to ensure activity remains. They believe that taxes such as Capital Gains Tax and transfer fees would have to be significantly reduced in order to keep investors and genuine buyers engaged in the market.

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