Pakistan Property & Real Estate News

Islamabad: Faisal Avenue underpass ‘to be opened before Eid’

By Muhammad Anis

The Capital Development Authority (CDA) started carpeting of the Faisal Avenue underpass road at the Citibank Chowk here on Thursday to give final touches to the project.

“We have completed 25% of carpeting work. Work on the underpass will be finished by September 30 and the road would be opened for traffic before Eid,” a CDA official told ‘The News’ on Thursday.

The CDA’s Machinery Pool Organisation (MPO) was to execute carpeting of 1,050-metre double road of the underpass but it did not mobilise its machinery for the last one week. The official said that they were not allowed to move the machinery from the MPO premises located along the Kashmir Highway after the suicide attack at Marriott Hotel on September 20.

The civic body is already 10 days behind the extended deadline for opening of the underpass despite strict directives from CDA Chairman Kamran Lashari. “There would be no further delay,” the official said.

However motorists who pass through the site of the project were not satisfied with the pace of work. Talking to ‘The News,’ they said that the underpass should have been opened at least one month back.

Sources in the CDA said that the installation of streetlights and to make them operational would take another week. They said that the poles of traffic signals at a crossing, which comes after the underpass towards Faisal Mosque, would be installed between October 7 and 10.

Meanwhile, the cold war and lack of cooperation between the Capital Development Authority and Islamabad Traffic Police would delay the completion of the flyover at the Citibank Chowk. The development work as per deadline was to be completed by December 31.

It has been learnt that traffic police officials were not allowing the construction firm to install the precast structure on pillars of the underpass flyover, apprehending hurdle in the smooth flow of traffic. “ It takes three hours to carry one precast slab with the help of a crane and place it on pillars,” said an official of the construction firm when contacted by ‘The News.’

The same situation surfaced in April last year when traffic police did not allow the contractor to start work on the project till start of summer vacations in academic institutions in June, delaying the project for two months. The development activity was also affected during the last four days due to restriction on the movement of dumper trucks and other heavy machinery in the metropolis.

Lahore: CM instructs PHA, LDA to improve city's aesthetics, remove encroachments

Shahbaz Sharif said the main responsibility of the Punjab Horticulture Authority was beautification of the city rather than to mar it through the installation of billboards. He said that the PHA would now resume the project of transformation of Lahore into the “City of Gardens” and trees would be planted at all public places, offices as well as highways.

He also issued orders for improving the performance of PHA and directed the LDA DG to remove illegal plazas and encroachments immediately and a transparent policy should be adopted in this regard. He said that it should also be ensured that trees are cut down during the construction of buildings. He said that a lenient view should be taken about vendors during removal of illegal encroachments. He also directed to conduct audit of the PHA. The CM also issued instructions regarding expressways as well as other projects.

First Philippine Property Show To Open In Dubai

Dubai — Trends in urban planning in Asia as well as good master planning will be discussed before visitors to the First Philippine Property Show in the Middle East which opens this Friday, said a Press release on Wednesday. The show’s project director, Jose Tuano, announced that Architect Medardo Cadiz, CEO and Principal Architect of Cadiz International will deliver one of the keynote speeches entitled “Good Masterplan Equates to Good Business.” For his part, McConnell Dowell Business Development Manager Trevor Stott-Briggs will talk on urban planning trends in Asia, with special focus on the Philippines.

Philippine Ambassador to the UAE Libran Cabactulan will lead Philippine government officials, international business community, investors and the Filipino expatriate community in the opening eremoniess. Tuano explained that “unlike other markets, the growth in Philippines real estate industry is driven by realistic demand from commercial and residential end-users and not by speculators. Residential projects of top developers Megaworld of Alliance Global; SM Development of SM Group; Aboitizland of Aboitiz Group of Cebu, Avida, Alveo and Ayala Premier of Ayala Land will also be presented during the two-day show.

Ireland first in euro zone to hit recession

DUBLIN - Ireland's was the first euro zone economy to slip into recession this year, figures showed on Thursday, as the bursting of a property bubble ended 25 years of sustained growth in the once mighty ‘Celtic Tiger’.

Official data from the country's Central Statistics Office showed gross domestic product (GDP) fell for the second successive quarter in the three months to end-June, the technical definition of economic recession.

The Irish data for the second quarter is late compared to others in the 15-strong euro zone, but analysts fear other countries will follow into recession as third quarter numbers seep out and turmoil in the financial sector begins to bite.

A Reuters poll earlier in September showed a 40 percent chance that the euro zone as a whole would slide into technical recession within the next 12 months. Irish GDP fell on both a quarterly and year-on-year basis, contracting 0.8 percent in the second quarter versus the same period in 2007 and dropping 0.5 percent in the three months to end-June from a fall of 0.3 percent in the first three months.

‘These figures show that to all intents and purposes the Irish economy is in recession,’ Bloxham Stockbrokers Chief Economist Alan McQuaid said.

‘Although the domestic side of the economy is contracting at a significant rate, the external side -- the multinationals -- is holding up quite well, but one would have to question how long that's going to last.’

Economists pointed to the collapse of a decade-long bonanza in Ireland's property market, coupled with a slump in construction activity and the impact of the global credit crunch as factors behind the rapid economic slowdown.

The country, which saw thousands of its citizens leave to seek work elsewhere after the last recession in 1983, has enjoyed an unprecedented boom since the late 1990s as multinationals arrived to take advantage of one of the lowest corporate tax rates in Europe.

‘One thing we know for sure is that investment spending is going to continue to act as a drag on the economy in 2009, particularly on the house building side,’ said Dermot O'Leary, chief economist at Goodbody Stockbrokers.

‘We know also that the labour market is deteriorating -- so that is going to affect consumption spending. So it does not look like it is going to be a v-shaped recovery.’

Some experts have argued that, given large-scale repatriation of profits by multinationals operating in Ireland, gross national product (GNP) is a more reliable indicator of the country's economic health.

CSO data on Thursday showed GNP dropping 3.1 percent on a quarterly basis in the three months to end-June after growing 0.8 percent in the first three months.

GDP in the three months to the end of June had been expected to contract 0.5 percent year-on-year, while GNP had been seen falling by 0.3 percent, according to a Reuters poll of economists published last month.

Punjab refuses to hand over Murree House to Centre

LAHORE - The Punjab government has refused to hand over the possession of the President House Murree to the federal government, saying the place was illegally occupied by the former President Pervez Musharraf during his tenure. The provincial government has also asked the federal authorities to provide the ownership proof of the Presidency otherwise it would be deemed as the property of the Punjab. After receiving a reply from the Federal Board of Revenue (FBR) in this regard, Chief Secretary Punjab has sent a letter to the federal government and another copy thereof to the provincial chief minister for his approval.

According to sources, a few days back, federal government had wrote to the Punjab government to hand over the President House Murree, it had occupied on August 19, 2008 with the help of DCO Rawalpindi and the police, to the Centre. Responding to the letter, Chief Secretary Punjab, Javed Mehmood, has written a reply to the federal government and its copy would be sent to the provincial chief minister within couple of days for his approval.

According to the contents of the letter sent to the chief minister through Federal Secretary Housing Division, Samia-ul-Haq Khilji, the said property belonged to the Punjab government and former President Pervez Musharraf, during his undemocratic rule, had illegally occupied it and later turned it into the Chief Executive Office. The federal government has also been asked to provide proof of its ownership of the property if it has any.

“In the absence of any such evidence, the place will be deemed as the property of the Punjab government and does not fall within the jurisdiction of the federal government”, the letter said.

On the other hand, a high-ranking officer at the CM’s Secretariat said that a renowned bureaucrat was involved in this conspiracy, who had misguided the Prime Minister on this issue insignificant issue. He alleged the said official was also involved in preparing cases against President Asif Zardari in the National Accountability Bureau (NAB) and, later, an enraged PPP activist threw ink on him at the Lahore High Court.

“Now the said bureaucrat is conspiring against the democratic government in connivance with some hard-line PPP leaders with a view to derail the fledgling democracy in the country”, the official added.

However, he said the Punjab government was ready to hand over all items and valuables in the President House Murree to the Centre.

Memon Investments unveils Frankfurt Sports Tower I in Dubai Sports City

Memon Investments, a leading Dubai-based property developer and part of the Memon Group of Companies, has announced unveiled of the Dh338 million Frankfurt Sports Tower I in Dubai Sports City. Emanating a German-inspired ambiance, FST I is slated for completion by the first quarter of 2011. The real estate developer has also registered an Escrow account for this freehold residential tower with the Commercial Bank of Dubai.

Ahmed Shaikhani, MD, Memon Investments, said, "Our project portfolio in the UAE, which now comprises 6 high value residential and commercial developments, is a testament to our unrivaled focus to deliver top-caliber built spaces. With the outstanding success of our developments in Dubai Sports City, we have decided to make this prime location as the home of the Frankfurt Sports Tower series."

Frankfurt Sports Tower I will comprise 224 units, including 140 studios, 56 one-bedrooms and 28 two-bedroom apartments within a total built-up area of 177,378 sq. ft. The tower will also feature two levels of basement parking and covered parking on the ground floor, a concierge desk and roof top health club. The launch of the residential property is in line with the developer’s plans to launch over 10 projects valued at over Dh3 billion in the UAE in the second half of 2008.

Invitation to Build 8,000 Flats by CDA

Islamabad: National and international firms have been invited to submit their expressions of interest to construct a multi-storey 8,000 residential apartments in I-15 Sector, it was learnt.

The flats would be earthquake proof and about 16 firms including three international firms have been shortlisted for the project, a CDA official said. He also said that the sector would have 17 parks and playgrounds, nine mosques, two colleges, seven secondary schools, 10 primary schools and nine shopping centers.

In the revised plan, 13,700 housing units including 5,560 plots of 5, 6 and 7.2 Marlas, 8,000 flats and 200 small houses would be built in I-15. The sector is being developed for the people who have an annual income of less than Rs. 150,000, it was learnt.

5 Marla Houses to be Exempt from Tax in Rawalpindi

Rawalpindi: Muhammad Raja Basharat, Punjab Minister for Law, Parliamentary Affairs and Local Bodies has said that they have submitted a bill in Punjab Assembly seeking exemption from paying taxes on 5 Marla Houses in Rawalpindi and Chaklala Cantonment Boards.

He said this while he was distributing Rs. 4.7 Million for Water Supply Scheme for Officers Colony Misrial Road. He criticized opposition MPAs for not bothering about the welfare of their societies, and said if they had proposed this bill, the government would have extended its support to it.

Raja Basharat said that they were providing funds for development of Officers Colony, Misrial Road for the purpose of construction of streets and alleys and water facilities. Giving details, he said that Rs. 16 lakhs have been provided for construction of streets while Rs. 3 lakhs were provided for provision of water to these areas. In addition to this, he distributed cheques worth Rs. 28 lakhs for the same purposes.

In Rawalpindi Cantonment board, Rs. 5 crore has been allocated for the development of civilian localities falling in its jurisdiction, he said.

He mentioned that the bill for exemption of 5 marla houses in cantonment limits from paying taxes should have been moved from the opposition MPAs and then it would have had the support of treasury bench in Punjab Assembly.

Muhammad Nasir Raja, PML District President said that they had executed development projects in the area without any discrimination whatsoever and hoped that people would vote for their candidates in the upcoming elections.

He also mentioned that they had introduced service based politics and impressed upon the people to vote for candidates on the basis of their services for the general public.

Nazim Potohar Town Hamid Nawaz Raja said that they would extend more funds for development of cantonment areas in coming days and would bring these undeveloped areas at par with the developed ones.

British buyers 'finding new ways into French property'

Britons are still investing in France despite some difficulties in finding the finance at home, it has been stated.

French property specialist firm VEF has said that its conversations with investors at the recent French Property Show in London have revealed a number of ways in which people have been able to adjust their plans.

One has been to abandon plans to sell a UK property to fund a purchase across the channel and instead let it out, taking advantage of the presently strong UK rental market in order to bring in an income that will fund the mortgage repayments on a French investment.

Such buyers will operate this way until the UK market improves enough for them to be able to sell the British property at a good price.

Commenting on property in French rural areas for Nubricks.com, John Moore of the Move Channel has said the best regions to buy in for lifestyle, food and scenery are Provence and Normandy.

Islamabad: Payment for G-14's acquired land from today: CDA tells IHC

The Land Acquisition Commission here Monday apprised the Islamabad High Court that it would start payment for the acquired land in Sector G-14 from today (Tuesday) for development of plots to the federal government employees, journalists and lawyers.

The single bench of Chief Justice Sardar Mohammad Aslam heard the writ petition filed by Dr Mohammad Aslam Khaki advocate. Liaquat Ali Abbasi, Land Acquisition Commissioner appearing in person, apprised the court that they would start payment in three phases to the affected people in three villages.

He said under 15-day payment schedule, they would give away an amount of Rs2.53 billion which would also include payment for the built up property.The chief justice adjourned hearing and directed the concerned respondents to apprise the court with compliance report after a month. During previous hearing, about 200 affected people had apprised the court that they were not being paid with compensation in lieu of their lands in three villages.

They also raised objection to the amount being determined for their pieces of land and said that the amount was comparatively less when compared with the existing market rates. Officials of Pak PWD were also present during hearing.

The petitioner Aslam Khaki advocate had apprised the court that CDA was directed to acquire land in Sector G-14 and hand over its possession to Federal Government Employees Housing Foundation (FGEHF) for the development of plots for journalists and lawyers.

Mortgage rates ease: Third week in a row

Despite possible growth in defaults, all mortgage rates drop slightly with the help of unexpected economic growth.

New York (CNNMoney.com) -- Mortgage rates declined, easing for the third straight week, according to a report from mortgage finance giant Freddie Mac.

Rates for 30-year fixed-rate mortgages (FRMs) averaged 6.35% in the week ending Sept. 4, according to Freddie Mac (FRE, Fortune 500). That's down from last week, when it stood at 6.4%, and below a year ago, when the rate stood at 6.46%.

Other rates also fell. Freddie's Primary Mortgage Market Survey showed that the 15-year FRM fell to a 5.9% average from 5.93% last week and from 6.15% last year.

"Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

"The economy grew at an upwardly revised 3.3% pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6%, the least amount since the same period a year ago," Nothaft further noted.

Five-year adjustable-rate mortgages (ARMs) averaged 5.97% this week, dropping from last week when it reported at 6.03% and from last year at this time when it was at 6.32%.

The ARM average decline is on the heels of a Fitch Ratings report on Tuesday that warned of growing default rates within ARM mortgages.

With an ARM mortgage, the payment for the first five years does not have to even cover interest rate payments. The interest that accumulates is placed on the mortgage, and borrowers have to pay more of the growing amount every month after the first five years. The Fitch report stated that payments of this type of mortgage will jump, and delinquency rates could double on these loans within the next two years.

Still, one-year ARMs averaged 5.15%, a decline from 5.33% last week and 5.74% last year, according to Freddie's survey.