Update on New Islamabad International Airport and projects in the vicinity

The Pakistan Civil Aviation Authority (PCAA) seems to be busy these days. It is inviting tenders for projects related to New Islamabad International Airport, which suggests that this facility may soon be up and running.

According to a recent ad published in a local print publication, the PCAA has invited tenders to establish a modern flight kitchen on a technical and financial basis. The last date to apply is May 16, 2016.

Firms that possess technical expertise in this regard are welcome to apply. Interested parties are required to deposit $100 or an equivalent amount in the form of a pay order or a bank draft in a specific branch of Habib Metropolitan Bank. The tender box will opened on May 16 at 2:30 pm in the presence of the applicants. Applications submitted after 2:00 pm on that day will not be considered.

The tender notice also reads that the airport will officially be inaugurated by the end of 2016.

And that’s not all. Another tender notice has called for applications for display hoardings near Benazir Bhutto International Airport’s Gerry Import and Export Cargo Complex. The rate (after concession) is PKR 131,000 and this contract will be valid for two years or for as long as flight operations are transferred fully to the new airport.

Based on these tender notices, it appears that the PCAA is finally ready to make the new airport at least partially functional by the end of this year, and completely operational in next two years or so. According to official comments, the cargo service will begin by the end of 2016 and flight operations will commence in March 2017. All of this is so close!

Dedicated development is also underway on Link Road which connects Kashmir Highway to the airport. Heavy machinery is in full swing at this site. I have learned that the concerned authorities plan to complete this road in next 5 to 6 months. This time frame also coincides with the time cargo operations are expected to begin at the new airport, further cementing the fact that the facility is finally almost complete.

What concerns us the most is how these developments will affect the property rates in the vicinity of this public facility. The ongoing work on the Link Road, the M2 Peshawar Toll Plaza and the Lahore Toll Plaza has already pushed rates upwards in some housing societies, including TopCity-1. However, even though property rates in TopCity-1 are inching upwards, there hasn’t been a stark rise just yet.

It is generally believed that property rates could go up by 100% in in some blocks of TopCity-1 that lie close to the Link Road, while a 50% price rise is expected in the rest. Other societies that could reap the benefits of the new airport and its infrastructure include Airport Enclave, Shalimar Town, University Town, Wapda Town, Pakistan Employees Cooperative Housing Society and Engineering Cooperative Housing Society.

If some of you are interested in making an investment spanning less than a year, I think the time has come to purchase property in one of the societies mentioned above. You can sell it just before the inauguration of the New Islamabad International Airport and enjoy being much richer!