Karachi, Lahore flaunt healthy growth, Islamabad dismays investors

OVERVIEW

Pakistan’s property market posted a motley of numbers in May 2016. According to Zameen.com’s scrupulously compiled statistics, Lahore and Karachi fared reasonably well, but Islamabad failed to impress investors once again.

The real estate market of Lahore was quite happening this month and to give our readers an even deeper insight into it, we added Bahria Orchard Lahore and Sector B-17 to the report this time around.

While Bahria Town (proper) remained merely stable and could not outshine other localities, Bahria orchard performed rather well. DHA lahore’s Phases VII to Ix also proved profitable for investors, although stability was the order of the day for 10-marla plots in Phases I to VI. LDA Avenue I, on the other hand, registered good gains overall.

Islamabad’s realty sector performed quite sluggishly and property values in even DHA Islamabad remained just stable. Bahria Town registered price drops and even Sector B-17 could not post impressive figures. Sectors F-11 and e-11 did not prove to be saving graces either.

Conversely, Karachi’s property market registered morethan-modest numbers and Gulshan-e-Iqbal was the only locality in this port city that could not impress stakeholders. DHA Karachi, DHA City Karachi (DCK) and Bahria Town Karachi (BTK) experienced healthy growth.

DHA projects topped zameen.com’s charts of top five localities for plots and homes, and the only exception to this was Karachi’s home category. unexpectedly, eden’s housing projects also showed up on the list of top five localities for homes in lahore, which is quite an anomaly.

It is worth noting that Ramandan is right around the corner so the realty sector is likely to see some stability in terms of prices and activity during this holy month. Moreover, the government will soon announce the Budget 2016-17 and more property taxes are expected to be imposed.

Read on to garner deeper insight into the property markets of lahore, Karachi and Islamabad.

LAHORE

DHA lahore’s phases VII to Ix were the centre of attention for investors in May 2016 and property prices of 1-kanal and 10-marla plots increased 4.90% and 3.36% respectively. The first six phases of DHA lahore could not post equally impressive numbers, but their performance was not disappointing at all.

As mentioned in the overview, Bahria Town (proper) failed to depict growth, but Bahria orchard posted sharp rises of 6.39%
and 6.35% for 1-kanal and 10-marla lots correspondingly.

Amid other localities on Raiwind Road, prices in LDA Avenue I increased sharply during the month. The remarkable 7.57% rise in 10-marla plot category is something that investors should take note of. Wapda Town clung on to lackluster stability, which is not all that surprising as the locality is fully developed so it does not see much investment activity.

1 Kanal 

10 marla

ISLAMABAD

Islamabad’s property sector certainly did not perform well this month. In fact, even DHA Islamabad, a locality that has been witnessing continuous growth over the last few months, ended on a stable note. Sector B-17, which is an active topic of discussion among property enthusiasts, also troubled investors by registering a controlled 1.03% drop for the 10-marla category.

Bahria Town’s performance was also slow. Prices in the locality dropped by 1.82% for 1-kanal plots and 2.13% for the 10-marla category. This is probably because investors are eyeing other Bahria Town projects across the country.

Sectors e-11 and F-11 also followed the listless trend by posting mediocre numbers. These sectors largely see just genuine buying and selling as there are only a few plots left.

1 kanal

10 marla

KARACHI

In Karachi’s boisterous realty sphere, DCK performed rather well and registered sharp ascents. Although property values in DHA Karachi have already increased manifold, price rises are still being observed. According to zameen.com’s data, the value of 250-yard2 plots in this locality increased by 2.47% during the month.

BTK also performed quite well. The locality witnessed good investment activity and a 2.86% rise was noticed in the value of 500-yard2 plots, while 250-yard2 plots grew by 3.76%.
Gulshan-e-Iqbal, a fully developed locality, didn’t see much investment activity and ended the month on a stable note.

500 square yards

250 square yards

FINAL ANALYSIS

With possession expected in DHA lahore’s Phase VIII (proper) and some blocks of Phase VII soon, investors are capitalising on properties in these localities. Development work has commenced in Prism 9 and the project is likely to post favourable numbers in the months to come. Keeping this in mind, we suggest you consider Phases VII to Ix for investment purposes.

Prices in Bahria Town (proper) have already increased manifold, which is why investors are now fixating their lens on Bahria orchard in a bid to bag good returns. When it comes to lDA Avenue I, we expect prices to increase further in the future. It’s likely that a good ascent will be observed as soon as real estate builders jump into the locality. Rates in Wapda Town, on the other hand, have already reached their peak, but the locality is certainly good for living.

In the case of Islamabad, investors need to be careful and make informed decisions because the federal capital’s property market is passing through a bit of a rough patch. Prices in Bahria Town Islamabad/ Rawalpindi decreased during the month because investors are probably testing waters of other Bahria Town projects across the country. Sector B-17 will probably see better investment activity once the issues of Block D’s land acquisition have been resolved.

While DHA Islamabad saw a few price surges recently, rates are somewhat stable now. This shouldn’t be the cause for long-lasting concern, as the locality still has room for growth in terms of property values. DHA Valley, on the hand, is bound to see more growth once development work is completed.

Karachi, the city of lights, has consistently been adhering to upward trends over the last few months. DCK seems like the best locality for investment. BTK is worth considering, but please note that the locality may see price fluctuations with increases and decreases in investment activity.

“Ups and downs are an important part of the real estate game, so investors should not worry too much about the recent price drops in Islamabad. I see a lot of investment potential in lahore’s property market and believe that property prices in the localities situated along lahore Ring Road’s southern loop will see some major ascents in the time to come. As for Karachi, I hope this port city continues to excite investors in the future just as it is doing right now,” said zameen.com Chief executive officer zeeshan Ali Khan. “We anticipate sale-purchase activity to slow down during the holy month of Ramadan, but it will normalise soon after. After all, it is a time for peace, reflection, and correction even for the property market.”

With the Budget 2016-2017 upon us, we are eager to see what the government has in store for the real estate sector. Rest assured, we will keep you updated on every little detail through these thorough market analyses.