Zameen.com sits down with Pak Associates CEO Mr Mian Manzoor Hussain to take his views on the general happenings of Islamabad’s real estate market
It is a no-brainer that the real estate sector of the Federal Capital is one of the most sought-after investment havens across the country. The property rates are relatively high here compared to those in Lahore and Karachi. A well-planned city, it is home to many influential people, including top politicians and bureaucrats.
The prices of properties in Islamabad dropped slightly in the recent past as the market witnessed a correction. However, the realty sector is stable these days and is seeing reasonable investment activity.
In order to analyse Islamabad’s real estate sector in more detail, Zameen.com interviewed Pak Associates Chief Executive Officer Mr Mian Manzoor Hussain. We are grateful to Mr Hussain for taking the time to enlighten us with his expert insight into the important aspects of Islamabad’s property market.
Mr Hussain began his real estate career at Top Associates, Karachi with a partner in December 1978, where he provided real estate consultancy and construction services for 25 years. He then shifted to Islamabad in 2003 and started Pak Associates at Pak Plaza in Sector F-10 Markaz. Today, Pak Associates is known among property buyers and sellers as a trusted real estate firm.
Zameen.com: What is the current scope of investment in Islamabad’s property sector?
Mian Manzoor Hussain: Islamabad’s property sector offers the best investment opportunities in the current scenario.In my opinion, this is the right time to inject money into the market because the property prices are relatively stable at the moment.
Property sale-purchase activity is generally normal these days, but certain areas such as Commoners Sky Gardens, Multi-Professional Cooperative Housing Society (MPCHS)’s Sectors B-17, F-17 and E-11, Top City, Commoners Town (DHA) and some Capital Development Authority (CDA) sectors are witnessing increased activity.
Investment prospects are bright in the under-development areas as well as the areas where developers have handed over possession. All in all, it’s a great investment environment.
Zameen.com: Where in Islamabad do overseas Pakistanis prefer to invest, and why?
MMH: Overseas Pakistanis prefer to invest in CDA sectors and Bahria Town because they like to invest in safe localities with good prospects for returns. The CDA and Bahria Town offer safe investment opportunities and litigation issues rarely arise in their developments.
On the other hand, Pakistanis living abroad are also considering Top City, Commoners Sky Gardens, Shalimar Town and Faisal Town for investment. Property prices in Top City have increased notably over a short period of time. Moreover, infrastructure development is almost complete in this society and investors are expected to get possession in Top City within 3 to 4 months.
Commoners Sky Gardens will also hand over possession for some plots this year, and the main gate of Shalimar Town will be completed in a month and its possession is also expected in 2015.
Zameen.com: Which areas are safe for long-term investment in Islamabad?
MMH: I would suggest investors put their money into CDA sectors where the authority has already handed over possession. They can also consider the localities where possession is expected in the near future, but they should steer clear of non-possession areas such as Sector E-12, which are not safe for long-term investment in my opinion.
Investors can also go for DHA Islamabad Phase II, especially Commoners Town, where prices have increased manifold in the recent past. The Flower Valley by Commoners Sky Gardens also has good long-term investment potential. The developer has already acquired 7,000 kanals of land for the project.
People should look to invest in Zone 2 and Zone 5 of the Federal Capital. For instance, housing societies such as Top City, Faisal Town, Pakistan Employees Cooperative Housing Society (PECHS), MPCHS, Shalimar Town and a few others in these zones are promising for long-term investment. Be sure to only invest in a society that has a no-objection certificate (NOC) from the relevant authority.
Zameen.com: What, in your opinion, is the role of the government in Islamabad’s property sector?
MMH: The government is playing a positive role in Islamabad’s property sector. It has catered to the housing needs of the people by launching various housing schemes through the CDA. I must say that the housing schemes launched by the government have provided colossal investment opportunities to the people as well. Also, by giving approval to well-recognised firms to develop housing societies in Zone 2 and Zone 5, the government has opened considerable avenues for the people coming in from Peshawar and Karachi as well as abroad to live in the surrounding areas of Islamabad.
The government offers new housing schemes at affordable prices. Here, I would like to mention Pakistan Housing Authority (PHA) Foundation, through which the government had offered housing units at reasonably low rates and now the prices of the same units have increased manifold.
Zameen.com: There are many avenues of investment in Pakistan. In your opinion, what entices people to invest in the property sector?
MMH: People prefer to invest in the property sector because it offers great opportunities at relatively low risk. I don’t think there is any other market that provides the type of returns on investment that the property market does, which is why it is so attractive to investors.
Everyone wants to have a chance to make more money in less time and the real estate sector offers various opportunities to the investors to multiply their money and provides genuine buyers with a number of options to build their dream homes.
The stock exchange, for example, on the other hand involves various risk factors. In the property sector, the risk and uncertainty is lower.
Zameen.com: In what ways can a real estate agency stand out from the rest?
MMH: A real estate agency can stand out from the rest by rendering fair services and maintaining proper documentation of its operations. It is important for a real estate firm to satisfy its customers fully, because satisfied customers mean positive word-of-mouth publicity, which plays an important role in bringing it more business.
On the other hand, unfair deals with the clients lead to negative publicity against the firm and affects its business prospects. Honest and crystal-clear dealing is our motto and it should be everyone else’s as well.
Zameen.com: What is the role of Zameen.com in the development of the property sector? How has Pak Associates benefited from the portal’s services?
MMH: Zameen.com is a prominent online platform that offers various benefits to its users. Not only agents, but also property buyers, sellers and overseas Pakistanis reap the benefits of its services. Property dealers also develop contacts through this portal, which has a positive impact on the property market.
We also get good business through Zameen.com. Not only buyers, but also property sellers contact us through this portal to avail our services and I appreciate Zameen.com’s contribution to the real estate sector.
This interview was originally published in the March 2015 issue of Zameen.com Magazine. Please click here to subscribe to the magazine today!
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Dear sir
What is the future of dha valley
Dear Mr. Anwer,
For the long term investor and lazy investor it would be good. But if you look in a bit more detail you will see that plot prices have gone up quite a bit almost everywhere and in DHA Valley there has been only a slight improvement (and allowing for inflation adjusted prices you would probably be looking at a loss). Unless and until DHA shows more progress on the ground DHA Valley will underperform. Even if DHA fully gears up in development it will still take years before the area is developed
Dear DHA Team,
what is future of DHA phase2 extension?