As the government is about to finish its term and elections are expected at year end or in the first quarter of 2013 at the latest, how is this going to effect real estate?
Do you see prices going down or up?
What about investors confidence in this volatile situation which is expected even after the elections?
Dear MBS,
Elections must effect on real estate.
But this time issue of prime-minister
badly effect on real estate. Investors
are waiting for SC decision.
The question is if the effect would be good or bad?
Would it increase the prices or take them down. I personally think they will largely go down in coming months coz of high intensity political activities and increased friction among institutions.
Dear MBS,
I agree from your statement.
But my point is that it's a good time for investors.
isn't it?Prices are on ground this time, they must
rise. This time its look risky but in fact risk is low
suspected profit will be high.
I think prices are not low. They are out of reach for end users who want property for living and not investment. You should also consider the fact that the supply has increased much more than few years back when there was boom. Good examples are private societies in zone 2 and zone 5.
Last thing, sectors like g13 n g14 n d12 are still not populated. Additionally many zone 2 societies like g15 f15 n e16 have very slow or no construction. So practically i see there's much more supply available or in pipeline than is required. This difference will further push the prices down if coupled with political situation. Just a personal opinion. ...
i guess the prices will go down when the trasnsition of the govt. will be taking place and i guess that would be the right time to invest because within six months after the new govt. is setup the prices will start rising again and it is most probable that a new govt. will try to gain some popularity by making progress in sectors like e 12
I think the situation is gettin messy and no party seems to be getting a deciding mandate which means another ‘halwa’ government and that would be discouraging to investors. wouldnt it?
There will be no effect on developed or where homes are under construction and it may effect undeveloped sectors.
You need to see how speculators are thinking, they are out of real estate market for a very long time that is why prices at least in Islamabad are constant. Is there any legislation in pipe line that can drive out speculators out of market. If we can find the answers we can easily predict what will be the impact on real estate. I completely agree property prices even at present are out of reach for a common Pakistani, it is speculators who in my opinion inflate the prices. Rest Allah knows better.
I think now is the time to invest in property in Lahore and Islamabad. Especially in Islamabad, prices will shoot up dramatically at any time within 1-2 years. In any case, the prices are still rising enough to keep you protected against rupee devaluation. In good areas, prices are rising enough to keep you afloat against inflation and devaluation.
The secret is to invest wisely: invest in area where the works are complete or almost complete but not yet populated. This will protect your investment against risk of no-development, and when the population starts to rise, your property will jump by 5-6 lakh per year on a one kanal plot.
Well mbs this question quite tricky. Let us try to divide it in several portions in order to solve it properly.
1.) inflation will be highest in the first year after elections. Most suitable time for govt to print money because
A.) fav argument as always (previous govt ended up in a mess)
B.) people are tired in election campaign and will let govt perform for some time. If post election scenario is a stable one.
I am expecting at least 15-20 % inflation in last term (feb-2008- feb-2009) it was 27% In first year. I suggest ppl having foreign currency should hold strictly to get protection against high upcoming inflation.
Demand and supply :
For isb i think you made a correct assessment for residential. But in commercial side still there is small room in bahria and dha. Those people can not go city centre for each and everything. Wtc is delayed so there is opportunity in civic centre and dha-2. Lahore is a hot cake both in residential and commercial but i think one year after elections will be suitable time.
Business scenario : there is influx (lhr and isb) after worst law and order of khi so this will depend upon khi govt.But there is very less hope about khi until all traders combine and call cj and coas to solve their issues. Lot to add on this aspect as i am not expert.
Price increase and rental value of commercial property depends too much on the economy and business climate in the country. If there is loadshedding and businesses are not doing very well, a lot of money will not be invested in business.
Comparatively, price and rental value of residential property does not depend too much on economy because a lot of people keep buying residential property even if business climate is not that good.
Even if business is slow, overseas Pakistanis in gulf countries still need to build their house because they have no option but to come back and retire in Pakistan. They also visit Pakistan for vacation and want to stay in their own house.
So in the current situation i think residential property is a better investment compared to commercial property.
What do you all think?
Elections are going to be held in may 2013.
The period before the elections is when real estate prices remain stable. No steep rise in prices and no sudden drop in prices. Local investors, people looking to make home and overseas pakistanis are all waiting to see the election result. If the election results can produce a stable govt, prices will rise. If the election produces a hung parliament with no clear majority for any party, then prices of real estate will be a bit stagnant.
In a way this is a risky time for investment but it is also a good time for purchase of property. If the new federal government wants to show a positive image in the start, it may announce development activity soon after elections.
Also, if the prices shoot up after elections, the investors who bought now will gain most.
What do you all think?
Agree with you pk1.
Prices would tend to be steady until the poll results come out. Investors/buyers would not want to pay higher than current prices.
Opportunity cost concept!
And yes if a good party with a majority comes up, darn... Whoever has bought anything will cherish :)
Or otherwise 
Dear friends, I want to purchase 10 marla plot file in bahria town phase 8 extension, rawalpindi, anybody can give me advice for this investment because someone are against / discouraging for investment and some dealers are demanding more than the deposited amount to bahria town and some are asking for less than the deposited installments, what are the fact and what is the reality, please advice……….