Fluctuations in property market witnessed in 2016

Report says Karachi fared well, Lahore and Gujranwala were stable

LAHORE: The year began with mixed sentiments in the real estate market of Pakistan, as after almost six months of crisis investors have finally started to trade in localities that still have lot more to offer in terms of investment returns.



According to statistics released by Zameen.com, a property portal, property price data for the month showed highs for some places and lows for others. Some markets remained stable, while others saw fluctuations.

Lahore

There wasn’t any major activity in the Lahore real estate as localities like DHA phase I to VI and Wapda town are saturated and remained stable. Areas with potential for growth such as DHA Lahore Phases VII to IX saw an upward trend. Despite the Lahore Ring Road issue, Bahria Town continued to remain stable. In the same vein, despite its litigation issues, LDA Avenue I experienced moderate growth.

The hot choice for investors was Bahria Orchard, which saw growth in the prices of both 10-Marla and 1-kanal plots at 1.38% and 1.82% respectively. The prices are expected to continue on this upward trajectory in the future.

Islamabad

The capital city’s real estate market does not seem to be doing all too well. Most localities are still reeling from the tax scheme that was implemented last year.

However, Bahria Town is the exception, with a growth of 4.95% for 1-kanal plots, and a sharp rise for 10-marla plots with 6.10%. Gulberg Residencia also saw some positive signs with 4.82% growth in the prices of 1-kanal plots and 6.08% growth for 10-marla plots.



Sector F-11, DHA Islamabad, Sector E-11 and Sector B-17 all registered moderate drops in 10-marla plot prices. DHA Islamabad and Sector E-11 registered moderate drops for even 1-kanal plots, while Sector B-17 and Sector F-11 remained stable.

Karachi

2017 seems to be a good year for the real estate sector in Karachi. Both Defence City Karachi (DCK) and Bahria Town Karachi (BTK) saw sharp rises for plots that were 500 square yards and 250 square yards plots. Both localities have seen a marked increase in buying and selling.

Despite its saturation levels Gulshan-e-Iqbal seems to be doing well for both 10-Marla and 1-kanal plots. DHA on the other hand, only managed to see prices stay stable.

Gujranwala

While Gujranwala has started to capture investor attention, in January its property prices remained largely stable. DHA Gujranwala saw moderate growth in the prices of 1-kanal plot files, whereas stability was the order of day for 10-marla plot files.

Prices dipped slightly in Citi Housing Society but largely stayed in the stable margin. Master City experienced stability as well.

DC Colony experienced drops, although they were largely moderate. Property is priced more in this society as compared to other options that are on offer, which is the reason that it is experiencing moderate drops.

Islamabad is the one city that has not shown any positive signs. However, that is not to say that the market does not hold potential anymore.

“There are some important developments happening in Islamabad. The market may seem stagnant but once projects, such as the Islamabad Expressway and the New Islamabad Airport near completion, activity should pick up pace again,” said Zameen.com CEO Zeeshan Ali Khan.

Both DCK and BTK are setting the Karachi market on fire, and this sharp growth has truly made a mark.



Khan expressed belief that market trends will pick up pace in the months to come. “We are expecting the market activity to pick up soon. While the tax scheme did take its toll last year, the amnesty scheme seems to be helping the market come back to its original state. The situation will improve in the days to come.” he added.

Published in The Express Tribune, March 2^nd, 2017.

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