Advise on buying a residential property in Islamabad

Buying Property
#1

Salam,

I am interested in purchasing/constructing a second home in Islamabad.

My requirements are as follows:

  1. 2 kanal ( land or a demolishable house )
  2. Security
  3. Margalla hills or scenic views
  4. Hiking trails
  5. Quiet neighbourhood
  6. No utility issues ( water, power, gas )
  7. Must be close to main Islamabad

Please advise, which sector, area or society might be suitable for us. We do not have any budget constraints, but wouldn’t want to go overboard. We are overseas Pakistanis and this will most likely be our vacation home.

Please do mention the current price range as well.

Thanks in advance.

Jawad

#2

Still a ballpark figure of budgeting would help to be more precise. Immediate names that fit the context:

  • D-12
  • Bahria Enclave
  • Bahria Golf City

Park View City but will take half a decade to be decently populated/liveable.

#3

Hi,

Thanks for your response, We are planning to go ahead with the transaction in the next 2-3 months. As I have mentioned that it’s going to be a vacation property, In terms of the budget, I would say around 350 million is my comfort zone, but I wouldn’t go over Rs400 million.

You have mentioned D12, is this sector in or near main Islamabad? Does it have all the utilities ( gas, water, power) without disruption?

Is there any option available in the F or E sectors in my budget range, and how do these sectors compare to D12?

Kind regards

#4

I guess, in 350 - 400 the only option for 2 Kanal can be Bahria Enclave and Bahria Golf City (just the land).

D-12 stretches well beyond that.

#5

Just wanted to clarify, I meant to say , my budget in Pakistani currency is 35 to 40 Crore rupees.

#6

Right sure, thanks for clarifying.

That’s quite good enough of an amount. Es and Fs are the elite sectors of ISB but too much concrete around.

D-12 is good, being at Margalla foot hills, all ameneties around and closer to mainstream ISB.

Else as suggested earlier, Enclave and Golf City are good enough as far as being closer to hill view and serenity.

#7

Sounds good, I have narrowed down my search based on your advice. I have searched some properties on Zameen in E7 and D12.

D12 and E7 look like better options for me. I was just wondering, how much a 2 kanal lot would cost approximately in D12 (Hill facing).

For E7, it seems like an older neighbourhood. If i choose to go this way, chances are I have to buy a demolishable house and get it reconstructed. Just wondering, if you can provide me with a rough price estimate for a 2 kanal piece of land or an old demolishable house in E7.

Please refer some reputable real estate agents, so I can get the ball rolling.

I also wanted your input for the agents’s commission fee/percentage in Islamabad, for residential deals?

Thanks again for your help!

#8

Islamabad agents usually charge 0.75% to 1.0% commission on gross amount. I can put you in contact with a trusted dealer if you send me your whatsapp number in private message.

You should have your questionnaire ready to enquire about fees, taxes, foreign remittance, transfer/deed process, and new FATF-compliant regulatory procedures.

#9

Hi,

Thanks for your advice, I have heard some good thing sabout Eighteen. The reason why we might not consider this society, is because we need to live close to Margalla hills, hiking trails, and close to main Islamabad. As I have mentioned earlier that D12 and E7 seem to suit our needs, this might change upon our in person visit to these sectors, and we might consider more options.

I will however visit Eighteen, once I am in Pakistan before I finalize a deal.

I will private message you my WhatsApp number. Please send me the contact information of the agents. Please make sure they don’t start calling me 10 times a day. I will try to start the process by the end of this month or by mid February.

For all matters related to this transaction, my lawyers will handle everything.

Thanks for your time.

#10

18 seems like shaping up to be quite an upgraded, elite sort project by the looks and promotions of it. With the interchnage it will be quite the mainstream.

I have the feel, whatever there will be inorganic in terms of greenery and water. That area, in general have severe water shortage, overall. They, for sure will manage but it will not be like the natural cloudy, more rain fall, and serenity like the ones in the proximity of the margalla hills.

Re: Comisisons and Practicality

  • 1% is the Norm and being Fair to every body. To be precise agent charges 1% each to both the buyer and seller.

  • The trap to be avoided is the Top (i.e., typical practice: agent buys undervalued from Seller and trades overvalued to Buyer or eithe one, whichever works for him, as long as he makes extra bucks under the table).

  • Getting rare but best deals are ones in which buyer settles the price to get the deal closed with same person on whose name are the property documents (Registry-Intiqaal or Transfer Letter and/or Possession Certificate, whichever applicable)

#11

Interesting, I would feel comfortable dealing directly with the registered owner, as it makes no sense to buy something from someone, who is not the registered owner of that item/property. It sounds like a read flag and asking for trouble.

I am looking for a trustworthy realtor/agent to deal with. Commission is not a problem, as it’s their lawful right for providing their services.

I will finalize a decision based on my lawyers thorough due diligence as getting to the land titles/records should not be an issue.

These are my thoughts.

Thanks for your valuable insight of the industry. I honestly appreciate it.

#12

Is there a formulated mechanism in Pakistan, to determine the valuation, assessment of a property or is it solely based on supply and demand?

#13

It’s purely based on Supply/Demand and driven by market rates. Prices can jump up like 10/20 % overnight and fall the same in some situations.

Yes, almost every one buys from owner but in many cases, the agents create a proxy.

  • The agent pay token money and get the deal amount fixed with the seller via an agreement that he will pay the seller the amount in 30 days to get it on his name. He has the legal right to sell it to anyone as he paid Token Money and got the rights to trade it further.

  • In 30 days times, the agent tries to find a buyer and closes a deal with him on higher price.

  • In the end, the agent gets the asset traded between buyer and seller by creating a proxy.

The Mecahanism in Technical Grounds is OK and not a big deal, the problem is in almost all cases, the agent have to build a pile of lies to buer and seller to maximiser his gains and that exactly is the problem in this line of work

This ia not to scare anyone away from taking but just highlighting some common tricks by agents that should be avoided/minimized.

#14

We have a similar practice here, they call that “speculation”, but still there are rules set in place for consumer protection.

Based on what you said, it boils down to finding an honest realtor with good credibility. The malpractice you mentioned, is it the norm or is it something that happens rarely. Another thing, when you use the term proxy, do you mean, the agent brings in an individual, who acts like a buyer, so they can drive the prices up while negotiating with the real buyer ( i.e bidding war ).

#15

What other precautionary measures would you recommend, other than using legal professionals?

#16

Proxy is any layers (one or multiple individuals) created between Geniune Buyer and Seller to maximise Agent gains beyond the 1% agent fee.

#17

Thanks everyone who responded. I really appreciate your valuable input and I am now more prepared to make an informed decision. In sha Allah

Cheers

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