Overview
Pakistan’s property market confidently strode into April 2016 displaying practically no signs of downfall. Islamabad’s property sector largely posted stable numbers, while Lahore and Karachi basked in the glow of relative growth.
In Punjab’s capital city, LDA Avenue I, Bahria Town and DHA (Defence Housing Authority) Lahore’s Phases VII to IX posted more-than-modest figures for 10-marla plots with no dips evident. The 1-kanal category, too, did not disappoint.
The federal capital, on the other hand, could not impress investors in April, as stability remained the order of the day for most major localities. However, DHA Islamabad successfully posted controlled rises for both 1-kanal and 10-marla categories.
The city by the sea painted a promising picture and the only major anomaly seen here was the relatively slow performance of Bahria Town Karachi (BTK).
In terms of popularity, DHA Rahbar in lahore remained in the spotlight by, once again, making an appearance on zameen.com’s lists of top 5 localities for plots and homes. Although dHA Karachi took the fourth spot in the plot category, this does not mean that the locality has dropped in terms of popularity because genuine buying and selling is still underway at a good pace here.
If you want to garner a detailed insight into the property markets of lahore, Islamabad and Karachi, please read on.
LAHORE
Lahore’s realty sector fared well in April and depicted controlled growth overall. LDA Avenue I posted sharp rise of 5.45% for 10-marla plots. This is probably because many people have started building their houses in the locality.
Similarly, even Bahria Town’s performance was positive and no drops in property prices were observed. This is surprising because Bahria Town’s projects are still embroiled in a few controversies.
The controlled rise seen in the value of 10-marla plots in DHA Lahore’s Phases VII to IX is a positive sign for investors. These phases have a lot of potential to grow in terms of rates and are worthy of consideration for investment purposes.
Wapda Town posted stable numbers during the month for both the 1-kanal and 10-marla categories as only genuine buyers are gravitating towards this locality.
1 kanal
10 marla
ISLAMABAD
The federal capital generally failed to post impressive numbers during April 2016 and only DHA Islamabad could register controlled growth of 1.43% and 3.12% in the 1-kanal and 10-marla categories respectively. These rises are hardly surprising, because development work on Islamabad expressway has commenced and also because the interest of property investors and home buyers in DHA’s developments is increasing.
The performance of Bahria Town Rawalpindi/ Islamabad remained sluggish as investment activity in Bahria Town’s projects is just satisfactory right now. However, home buyers should not write off this locality.
The month ended on a stable note for Sectors F-11 and E-11. Property prices in both these areas are already rather high, which is why investors seem to be on the lookout for fresh investment options in the federal capital.
1 kanal
10 marla
KARACHI
As expected, April 2016 was quite a happening month for Karachi’s realty sector. DHA Karachi, DHA City Karachi (DCK) and Gulshan-e-Iqbal performed quite well.
DCK, in particular, impressed investors by posting a sharp 5.55% rise in the value of 250-square yard plots. Memorandums of understanding signed between DCK and educational and medical institutions have played a critical role in pulling investor interest this way.
BTK, however, clung on to mere stability this time around. even though development work here is being carried out at a good pace, the project has been unable to post impressive numbers over the last few months.
Gulshan-e-Iqbal, on the other hand, adhered to its usual growth pattern during April 2016 and posted a 1.68% rise for 500-square yard lot.
500 square yards
250 square yards
Final Analysis
The federal capital’s property market languished with less-than impressive numbers during April 2016, and this sluggish performance is an obvious highlight of the month. However, it must be noted that although Bahria Town Islamabad did not witness much investment activity, genuine buyers are still considering the locality to realise their dream of owning a home in a serene environment. The positive performance of DHA Islamabad is indicative of the investment potential of DHA’s projects.
In Lahore’s property scene, LdA Avenue I’s performance is praiseworthy. Property values in many localities in southern part of the city, such as Fazaia Housing Scheme Phase II, AWT Phase II, and Sui Gas Housing Society Phase II, have increased manifold in the recent past and investors now seem to be eyeing LDA Avenue I, where market values are still low comparatively.
Additionally, although the issue of Lahore Ring Road’s route intersecting Bahria Town is still unresolved, investment activity in the clear blocks of the society is impressive. Moreover, investors should consider funnelling money into DHA Lahore’s Phase VII to IX to bag good returns in the future.
Karachi’s property market is likely to see further growth in the future. even though BTK has not been performing all that well despite the excellent pace of development, other localities such as DCK can still be considered for investment.
“Generally, it has been a good month to be in the real estate game. With the Budget 2016-2017 right around the corner, we ardently hope the government will play its apart in the development of the property sector,” said Zameen.com Chief executive officer Zeeshan Ali Khan.
“We hope the government will not impose further taxes on property transactions, as that will just squeeze investor profit even more. The sector needs to be regulated so that the interests of investors, buyers, sellers, property owners and tenants can be safeguarded,” he added.
Overall, April 2016 was a good month that steered clear of significant dips. let’s see how the future unfolds for the happening property sector of Pakistan. We wish all the stakeholders the very best of luck!
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