FAISALABAD: During the first year of the current government, real estate prices have shot up in the third largest city of the country, showing an increasing confidence of investors.
The continuous but gradual migration of rural population to urban centres and tax benefits in investing in real estate also resulted in a dramatic increase in property prices, according to market experts.
The city’s outskirts kept expanding over the last year, as many housing societies and commercial areas were established to meet the increasing needs of people.
Deterioration in the law and order situation and a lack of confidence by overseas Pakistanis on the previous government resulted in slowing down of the the dramatic surge in prices, that had been witnessed during 2008-2009, during the last three years of the previous regime, experts added.
According to property expert Aftab Ahmad, the significant increase in the real estate business of Faisalabad was due to business-friendly policies of the current government.
Prices in developed areas in Faisalabad are unaffordable for new settlers. This trend is pushing the prices of the new housing schemes up, he added.
Another real estate developer Ahmad Mujtaba said many overseas Pakistanis are now investing in the real estate business to cash in on surging prices and because they consider it to be a safe investment.
Experts also stated that property prices in Faisalabad have witnessed a 100% increase at certain locations.
Many developers are coming up with lucrative new projects around the city to cash in on the situation.
“It’s a good time to invest in the real estate business because there is a hefty margin on secured investments,” said an overseas investor Fawaq Ahmad, offering a simple, yet true, analysis of the real estate sector.
Published in The Express Tribune, May 28th, 2014.
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