And here comes yet another blow to investors. Bahria Town Karachi, a project that has been facing various controversies over the last few months, is likely to see further dips in prices very soon. This time around, Bahria Town itself will play havoc with investor sentiment by increasing property transfer fees, which means that investors will now have to shoulder an additional onus of charges.
Without further ado, let me share details of the revised transfer fees with you. Please see the table below:
| Project | Size | Revised General Transfer Fee | Revised transfer fee in death instances |
|
Residential Plots |
125 square yards | PKR 15,000 | PKR 10,000 |
| 250 square yards | PKR 42,000 | PKR 22,500 | |
| 500 square yards | PKR 55,000 | PKR 29,000 | |
| 1,000 square yards | PKR 85,000 | PKR 56,000 | |
| 2,000 squares yards | PKR 195,000 | PKR 101,000 | |
| Bahria Homes | 125 square yards | PKR 39,500 | PKR 27,500 |
| 200 square yards | PKR 46,500 | PKR 32,000 | |
| Commercial plots | 125 square yards | PKR 115,000 | PKR 57,500 |
| 200 square yards | PKR 195,000 | PKR 74,000 | |
| 250 square yards | PKR 225,000 | PKR 106,000 | |
|
Bahria Apartments |
950 square feet (2-bedroom apartments) | PKR 34,500 | PKR 27,500 |
| 2,250 square yards (3-bedroom apartments) | PKR 65,000 | PKR 49,000 | |
| 2,950 (4-bedroom apartments) | PKR 82,500 | PKR 55,000 | |
| Ali Block | 125 square yards | PKR 18,500 | PKR 13,000 |
| Midway Commercial | 125 square yards | PKR 125,500 | PKR 82,500 |
| Bahria Heights | 950 square yards (2-bedroom apartments) | PKR 50,500 | PKR 37,500 |
| Quaid Villas | 200 square yards | PKR 73,000 | PKR 50,500 |
| Golf City | 500 square yards | PKR 50,500 | PKR 37,500 |
| 1,000 square yards | PKR 85,500 | PKR 56,000 | |
| 2,000 square yards | PKR 185,500 | PKR 120,000 | |
| Precinct | 250 square yards | PKR 50,500 | PKR 37,500 |
Revised transfer charges will be implemented with effect from December 15, 2015. So, buckle up investors, you will now have to make investment decisions keeping these charges in mind.
Genuine buying and selling will probably not be affected by this move. However, investors will certainly hesitate to funnel money in the locality. Even if they do not, they will probably invest for long term, rather than the short term, to bag good profits.
While it’s true that development work in Bahria Town Karachi is underway at a good pace, the developer really needs to polish its reputation and take immediate measures to win back investor trust.
As we all know, the government is not helping the realty market in any way. By increasing property taxes and imposing withholding tax on bank transactions, it seems to be breeding uncertainty in the property sector. The increase in transfer fees by developers is just like adding fuel to the flame. Please note that Bahria Town recently increased transfer fees in Bahria Town Lahore and the Defence Housing Authority (DHA) did the same in DHA Lahore. The Lahore Development Authority, on the other hand, has decided to double the fee for urgent transfers. What a travesty that the property sector, which greatly contributes to the national exchequer, is being constantly plagued with one additional charge after another.
If you are a Bahria Town Karachi investor or planning to become one, please share your views on imminent increase in transfer fees. Use the comments section below for further discussions on the topic.
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Bahria Town has become nuisance
I agree, for some people it has really become a nuisance. People invest their hard-earned in Bahria Town and then face litigation issues. Though not every project of Bahria Town has the same status, the affected projects must be looked into on a priority basis.
May ALLAH bless us all. Aameen
Regards,
zain Nadeem
Why is Bahria Town Karachi property prices reducing and why is it expected to reduce further? I see the updates of pics and it seems that work progress is faster than a lot of other developments but it is a surprise to see prices remain so low
As a real buyer the increase in transfer fees has no impact for me
Dear Farooq Sb,
Rangers’ claims about Bahria Town Karachi’s land have played havoc for the society. From where I see it, investor sentiment has been largely disturbed.
Yes, development work is underway at a good pace, but increase in transfer charges will further increase the hesitation of investors.
Rest ALLAH knows better.
Let’s see how investors will respond to the move.
Regards,
zain Nadeem
At the outset, thanks for the newsletter as well as the article on Bahria Karachi hike in transfer fees. It would have been more informative if the writer had added another column indicating current fees being charged to compare with the raised transfer fees.
However, I fully endorse writer’s point of view that real estate sector is un-necessarily being over burdened by the Uncalculated moves of Govt as well as developers, both making difficult for the investors and genuine buyers and not letting the sector grow at its full potential.
Regulators are sleeping & not monitoring how the real estate developers are making lives of Investors & needy buyers difficult day by day by not completing the development works within the stipulated and intimated time frames. More over by adding silent financial burden such as highlighted in the write-up. Govt just see the real estate sector lucrative for collecting additional taxes and leaving investors and buyers at the mercy and behest of real estate developers. This practice needs to be arrested & developers needs to be monitored on a regular basis by the state regulating authorities fairly and without creating hindrances.
Thank you so much for your feedback. You have raised some valid points. Stay tuned to Zameen.com!
Regards,
zain Nadeem
I totally agree with the writer. BTK should have considered the burdon on the investors this increase in transfer fees will have. Bahria Town Karachi has not yet developed, so increasing the fees in the initial stages will have a negative impact on the scheme, which is already facing negative publicity due to certain concerns.
Also, had the writer added another column showing the present charges, it would have been more clear as to the ratio of increase.
Faiz Sb,
Thank you for your feedback. What, in your opinion, are those concerned affecting Bahria Town Karachi’s status?
Regards,
zain Nadeem
My dear countrymen!
I have a question for the Govt. of Pakistan ” The Finance Minister keeps thinking day and night how to collect more and more taxes from the already down-trodden people of Pakistan. Unfortunately, in return, the Govt. is doing nothing to protect the interests of the tax-payers. The real estate sector is the leading sector that has made the lives of the common people a hell. The fake housing schemes are growing like mushrooms, but no govt. agency is there to help the innocent affectees whose only crime is that they want a house or flat of their own. They are being looted by not only the fake housing schemes but by the so called BIG NAMES in the sector like Bahria Town and DHA. For example, Bahria Town Rwp phase 8, K Block plot allotees have paid all the dues long ago and they are waiting for the possession of their plots but the BT management keeps giving them false promises but nothing is being done. Similarly, DHA Valley project is a real shame for DHA Islamabad. This has badly tarnished the reputation of DHA Islamabad.
Mr. Finance Minister! Please take pity on the miserable people of Pakistan.
Last word for the people of Pakistan: Please realise your RIGHTS and wake up.
Sincerely,
Shehzad Ahmed
An overseas Pakistani
I am also an Overseas Pakistani, and I had bought a plot in what was then touted as a “Rolls Royce” Scheme of Bahria Town Rawalpindi — Phase 9 — which was to be constructed and planned by a Malaysian company.
I paid in full, more than a decade ago, only to now discover that the whole Phase 9 no longer exists . . . .and people who owned the plots are now being “adjusted elsewhere”. . I had paid extra for boulevard, for corner and for all the bells and whistles. . . and now it all means ZERO . . .
When known figures are involved in real estate scams — and then gets pronounced innocent. . . what to expect of their best friends?
Prophet Muhammed (PBUH) said, “A system of Kufr can survive, but an unjust system cannot.”
May Allah punish each and every one of them. Ameen, Summa Ameen!
Dear Shahzad Bhai,
I appreciate that you took the time to post such a detailed comment. You are right, the government needs to safeguard consumer rights. Many developers are fleecing hard-earned money of the people on the back of promises, which they fail to meet sometimes.
And I can state it for a fact that overseas Pakistanis play an important role in the growth of the property sector. I hope things will get better with the passage of time, InshaALLAH.
Regards,
zain Nadeem
Well for starters i think bahria town should have waited till 2016
Bahria town has said in many ways like when launching bahria town karachi that its possesion will start from 2015 december so why increase transfer fees before that.I know it will increase the rate of transfer if not implemented at right time but since when its a good practice to just add unlawfull tranfer fees and not even give what is promised.If bahria thinks they have done alot in short time then whats the use no one is living there now except for on site labours/ some engineers.I think first a bold move of handover possesion should be done giving the condition of full payment b4 possesion and then they should had dropped the bomb of increase transfer fees of bahria property.Hack they could have increased transfer fees by 2 times but since they have nothing to give that is why they are not doing so.
Dear Asif,
Thank you for your detailed feedback. Though the development work is underway at a good pace, I don’t think the society is totally livable at the moment. From where I see it, I think Bahria Town needs to regain its gradually loosing trust to spark price rise in Bahria Town Karachi.
May ALLAH bless us all. Aameen
Regards,
zain Nadeem
Dear Zain,
Thank u for article. I plan to buy 200 yard Bahria home for long term. Is it good time to buy or wait for a while until un-certainity is resolved??. The prices will go down or stable?
Rangers ke Talwar abhi tak latak rahe hai ya matter resolved?
Kindly advise.
Development work is underway at a good pace in the society. Rangers’ claims are yet to be proven. Let’s see what happens. I have heard that genuine buyers are more interested in Bahria Town Karachi.
PS: People are also awaiting the launch of Bahria Town Peshawar.
Regards,
zain Nadeem