After a long hiatus, property boom returns in Faisalabad
Real estate prices have gone up 50% to 70% in just three months.
Facing a dearth of lucrative investment choices, overseas Pakistanis are also pumping their savings into real estate for a safe investment.
FAISALABAD:
A property boom, driven by improving sentiments after the change in government, is emerging again after a gap of years, but at the same time it is drawing investment away from growth sectors of the economy.
In just about three months, prices of real estate in Faisalabad – the third largest city of the country – have gone up by 50% to 70%, depending on locality, according to market sources and property dealers. Prices are rising at a rapid pace as investors pin their hopes on the new PML-N government, believing it will revive the flagging economy and address security issues, they say.
The price surge has also rekindled hopes of a host of housing societies, which invested millions of rupees but got stuck during the rule of the previous government on the back of negative sentiments and absence of buyers.
Property developers, who were said to be waiting for a change of government, are cashing in on the situation with almost 100% increase in prices. The PML-N is widely considered to be a business-friendly government.
During the previous government’s tenure, many developers constructed new housing societies, but could not woo investors and home buyers. But now high demand is giving them almost double the prices for their housing units.
Many new investors and businessmen are pouring money into real estate to capitalise on the opportunity, say market sources. Facing a dearth of lucrative investment choices, overseas Pakistanis are also pumping their savings into real estate for a safe investment.
Though with the market boom big property developers are expanding their business, it is not contributing much to the country’s economic growth as the sector neither employs many people nor contributes anything significant in shape of taxes.
“Energy crisis is one of the primary causes that is forcing many people to withdraw investments from different sectors and invest in real estate,” said Bilal Doggar, a property adviser, while talking to The Express Tribune.
Though investment in real estate was considered safe, it was discouraging the spread of industrialisation in the country, he said.
Calling the PML-N government pro-business, investors liken the fresh property bubble to the Musharraf regime when investment from local and overseas Pakistanis poured in.
There are several housing societies in the city offering a luxury lifestyle, encouraging people to move from rural areas to the cities.
These people are bringing their families to urban areas, attracted to facilities like better schools, big hospitals and easy access to different amenities of life.
“We do not expect any drop in property prices in the coming months,” said Usman Ali, a real estate agent.
Besides the takeover by the new government, there were many other factors that were contributing to the price hike, he said, but cautioned pricey houses were creating problems for the middle class that was searching for a shelter of its own.
Published in The Express Tribune, September 20th, 2013.
A property boom, driven by improving sentiments after the change in government, is emerging again after a gap of years, but at the same time it is drawing investment away from growth sectors of the economy.
In just about three months, prices of real estate in Faisalabad – the third largest city of the country – have gone up by 50% to 70%, depending on locality, according to market sources and property dealers. Prices are rising at a rapid pace as investors pin their hopes on the new PML-N government, believing it will revive the flagging economy and address security issues, they say.
The price surge has also rekindled hopes of a host of housing societies, which invested millions of rupees but got stuck during the rule of the previous government on the back of negative sentiments and absence of buyers.
Property developers, who were said to be waiting for a change of government, are cashing in on the situation with almost 100% increase in prices. The PML-N is widely considered to be a business-friendly government.
During the previous government’s tenure, many developers constructed new housing societies, but could not woo investors and home buyers. But now high demand is giving them almost double the prices for their housing units.
Many new investors and businessmen are pouring money into real estate to capitalise on the opportunity, say market sources. Facing a dearth of lucrative investment choices, overseas Pakistanis are also pumping their savings into real estate for a safe investment.
Though with the market boom big property developers are expanding their business, it is not contributing much to the country’s economic growth as the sector neither employs many people nor contributes anything significant in shape of taxes.
“Energy crisis is one of the primary causes that is forcing many people to withdraw investments from different sectors and invest in real estate,” said Bilal Doggar, a property adviser, while talking to The Express Tribune.
Though investment in real estate was considered safe, it was discouraging the spread of industrialisation in the country, he said.
Calling the PML-N government pro-business, investors liken the fresh property bubble to the Musharraf regime when investment from local and overseas Pakistanis poured in.
There are several housing societies in the city offering a luxury lifestyle, encouraging people to move from rural areas to the cities.
These people are bringing their families to urban areas, attracted to facilities like better schools, big hospitals and easy access to different amenities of life.
“We do not expect any drop in property prices in the coming months,” said Usman Ali, a real estate agent.
Besides the takeover by the new government, there were many other factors that were contributing to the price hike, he said, but cautioned pricey houses were creating problems for the middle class that was searching for a shelter of its own.
Published in The Express Tribune, September 20th, 2013.