As the first six months of 2019 come to an end, Zameen takes an immersive look at the performance of Rawalpindi and Islamabad property market. We have compared the price and search trends for the most popular types of property in the twin cities during the first half of 2019 (H1) with those recorded during the second half of 2018 (H2).
Most Popular Areas with Residential Plots for Sale in Islamabad and Rawalpindi
Partly located in Rawalpindi, Bahria Town Islamabad maintains the top position when it comes to buying residential plots in Islamabad, mainly due to the availability of smaller plots at affordable rates. The average price for a 5 marla plot in Bahria Town Islamabad has gone up by 2.34%, compared to H2 of 2018, and the property is available for around PKR 45 lakh. Meanwhile, the price of a 10 marla piece of residential land in Bahria Town stands at around 82 lakh, witnessing a drop of 3.34%.
Similarly, the average price of a 1 kanal plot in Bahria Town Islamabad now stands around PKR 1.5 crore after a minor drop of 0.87%. Overall, the average prices of larger plots in Bahria Town Islamabad have gone down because there has been a shift of interest in the market. Investors seem keener to buy properties smaller in size since they are usually more affordable. This can also be attributed to the inclination of buyers towards fruitful investment opportunities in the area.
DHA retains its position as the second-most popular area for buying residential plots in Islamabad. It hardly comes as a surprise as Defence has consistently remained one of the top three areas in the twin cities where people look for residential plots, according to Zameen’s search trends. However, due to a decrease in demand in the first half of 2019, a drop of 7.44% has been observed in the value of 5 marla plots in DHA Islamabad, the average price of it is around PKR 19.5 lakh.
The price of a 10 marla residential plot in Defence Islamabad, on the other hand, has risen by 2.87% and stands at about PKR 86 lakh. Meanwhile, a drop of 6.17% has been observed in the average price of a 1 kanal piece of residential land available in DHA Islamabad, which is now available for around PKR 1.4 crore, mostly due to slow development in the area.
Overall, Rawalpindi and Islamabad property market has performed well. Other top performing areas for buying residential plots in Islamabad include Gulberg, B-17, I-2, G-14, Gulshan Abad, University Town, Top City 1 and Fateh Jang Road.
Most Popular Areas with Residential Plots for Sale in Bahria Town Islamabad
A wide variety of residential plots are available for sale in different phases and localities of Bahria Town. In the wake of search trends, Bahria Town Phase 8 makes it to the first position of the popularity index making it the most sought after phase to buy a residential plot in Bahria Town Islamabad. A 5 marla residential plot in Phase 8 of Bahria Town Islamabad can be bought for as low as PKR 9.5 lakh. Those looking for a more spacious home can easily find options at affordable rates. The lowest price that you can pay to own a 10 marla residential plot in the area is around PKR 15 lakh. Similarly, the asking price for a 1 kanal plot in the area starts at around PKR 32 lakh. Prices of properties are lower in Phase 8 compared to other phases of Bahria Town, since some parts of the area are still under development.
Bahria Enclave is the second-most popular area to buy a residential plot in Bahria Town Islamabad. Investing in a 5 marla plot in Bahria Enclave will cost you at least PKR 25 lakh. The starting price of a 10 marla plot is around PKR 37 lakh.
Phases 3, 4 and 7 are some other popular phases in Bahria Town Islamabad where you can invest in residential plots.
Most Popular Areas with Houses for Sale in Islamabad and Rawalpindi
Here is a comprehensive comparison between price trends of houses for sale in Islamabad as well as Rawalpindi during the second half of 2018 and first half of 2019.
The area of Bahria Town Islamabad, again, stands first in terms of popularity when it comes to buying houses in the city. Moreover, with an increase of 2.01% as compared to the last six months of 2018, the price of a 5 marla house for sale in Bahria Town Islamabad has reached around PKR 1.36 crore. The insights of the real estate in Islamabad and Rawalpindi can also be fetched from the search trends for houses being sold in Islamabad.
A 10 marla residential unit on sale in Bahria Town is going at an average price of around PKR 2.67 crore. The average price of a 1 kanal house in Bahria Town Islamabad underwent a surge of 1.30%; it now hovers around PKR 4.34 crore.
The second most popular area in Rawalpindi for buying homes is Gulshan Abad. The market for 5 marla residential units in the neighbourhood is performing well. However, we only see a nominal drop in the value of a 5 marla house in the area, the average price of which is around 56 lakh. PKR 1.1 crore is the average price of a 10 marla residential unit in Gulshan Abad, the value of which has risen by 4.04%. Similarly, a 1 kanal house for sale in Gulshan Abad is available for PKR 2.1 crore, with an increase of 4.54% as compared to the prices of the similar units in the last six months of 2018.
DHA Islamabad, Adiala Road, Gulraiz Housing Society, E-11, PWD Housing Scheme, Pakistan Town and National Police Foundation O-9 are other most popular areas to buy houses in Islamabad.
Most Popular Areas with Houses for Sale in Bahria Town Islamabad
Situated near Adiyala Road, Phase 8 is the most popular area in Bahria Town Islamabad. The cost of a 5 marla house in Bahria Town Phase 8 starts at PKR 34 lakh. Meanwhile, the cost of a 10 marla house can be as low as PKR 95 lakh. The lowest price of a 1 kanal residential unit available for sale in the area is around PKR 1.6 crore.
The second most searched for area for buying houses in Bahria Town is Bahria Enclave, as per the data extracted from the first half of 2019. You can buy a 5 marla house in Bahria Enclave for as low as PKR 1.05 crore. You can choose between 10 marla and 1 kanal house options with the lowest asking price of around PKR 1.55 crore and PKR 3.2 crore, respectively.
Phases 2, 3 and 4 are amongst the other three most popular areas in terms of buying houses in Bahria Town Islamabad.
Most Popular Areas with Houses for Rent in Islamabad and Rawalpindi
Below is an analysis of the fluctuation in the value of rental property in Islamabad and Rawalpindi based on the comparison of market performance in H2 of 2018 and H1 of 2019.
Bahria Town Islamabad is the most sought after neighbourhood amongst tenants looking for houses to rent in Islamabad and Rawalpindi. A 5 marla house in Bahria Town Islamabad is now available with an average monthly rent of PKR 50,000, whereas the rent of a 10 marla house in Bahria Town Islamabad is about PKR 82,000 per month. For 1 kanal houses in Bahria Town, the monthly rental average is around PKR 93,000.
The area of F-10 secures second position as a popular area for rent in Islamabad. The average monthly rental price for a 10 marla residential unit in F-10 Islamabad is around PKR 80,000. The average rental price of a 1-kanal rental house in F-10 Islamabad is PKR 1.9 lakh per month.
Ghouri Town, DHA Defence, F-7, F-8, F-11, Airport Housing Society, PWD Housing Scheme and G-13 are other areas that made it to the list of top 10 neighbourhoods to rent houses in Islamabad.
Conclusion
Overall, Rawalpindi and Islamabad property market is ripe with opportunities for investors, thanks, in part, to the recent development and expansion of housing projects in the twin cities like Gulberg, Bahria Town Phase 8 and Green City.
The budget for 2019-20 features many real estate-taxation clauses, which will impact the real estate market of Rawalpindi and Islamabad in the coming times.
Looking at how the real estate market of the twin cities performed, CEO of Zameen.com, Zeeshan Ali Khan said, “We have the downtown, high-priced areas such as Blue Area and Jinnah Avenue where the cost of land practically dictates that developers go as vertical as possible; and then we have the peripheral residential conglomerations such as Bahria Town and DHA Islamabad-Rawalpindi where land is still affordable enough for horizontal expansion.”
He further stated, “One of our own projects, Zameen Ace Mall, is being built in DHA Islamabad-Rawalpindi’s Phase II as well, so Islamabad is still a very practical investment option. It is a particular favorite for expatriate Pakistanis because of its reputation for being a highly secure city with great infrastructure, excellent facilities and lifestyle options.”
“Over the last few years, especially since the introduction of revised taxation regimes, Pakistan’s real estate sector had become a market largely dominated by genuine buyers and investors whose primary interest was not to make a quick buck, but long-term utilization of property,” he continued.
“What we’ve seen since the end of speculative trading is the emergence of a class of buyers and investors whose aim is to either utilize the property they are buying by making it livable now, or investing for long-term returns meant for future generations,” said Khan. “There is next to no trading or flipping going on because that is no longer as lucrative a prospect as it once was, given the drastic changes to the taxation mechanism over the last few years.”
“With the announcement of the latest budget and yet another revision in the tax regime, we expect to see stable price trends in the coming months before the market reacts to these changes. This makes for an ideal buyers’ market, and that too in a sector where stability is virtually guaranteed because of the cash-based nature of the investment and the near-absence of mortgages. Risks are low, rewards are potentially very high in the long term; that is an ideal investment scenario,” he further elaborated.
Khan also said the major realty markets in the country such as Karachi, Lahore and Islamabad had distinct challenges and their own sets of opportunities for investors to make the most of.
The H1 Islamabad/Rawalpindi Real Estate Market Report for 2019 is based on prices advertised by real estate agencies on behalf of their clients on Zameen.com, and do not represent actual real estate transactions conducted in the twin cities. All prices mentioned above are subject to change without notice.
