Real estate market trends in December were not all that different from the ones seen in the preceding month. Overall, it has been an uneventful time period in terms of market activity. Property prices across Pakistan, and in three of the major cities, have so far remained static. Only a series of small price blips – seen to either ascend or descending slightly each month – were witnessed. The market, in short, has continued with its stable progression.
Pakistan House Price Index
Like in the few months following the national elections, property prices in December registered a minor increase of about 0.15%. This rise, however, is inconsequential in the larger scheme of things. We can expect a noticeable change only after there has been some development on the Naya Pakistan Housing Programme. Alternatively, the mini-budget may disturb this stability.
The Pakistan House Price Index increased by 0.35 points in December, and currently stands at 235.42 points.
Pakistan Plot Price Index
The situation was not very different for the Pakistan Plot Price Index. It registered a minor descent of 0.15%. This, again, is indicative of slow market conditions where nothing much took place. The index points fell by 0.38 points to settle at 252.17 points.
Lahore House Price Index
Lahore House Price Index has persisted with its flat-lined progress. House prices in Lahore had seen an increase earlier in the year – but this increment fizzled out by the coming of the last quarter.
The Lahore House Price Index showed a small decrease of 0.05%, going down by 0.12 index points. Right now, it stands at 245.48 points.
Lahore Plot Price Index
Lahore Plot Price Index does not look much different from the house index. The prices of plots in Lahore exhibited a decrease of 0.12%.
Lahore Plot Price Index fell by 0.36 index points. By the end of the year, it stood at 305.78 index points.
Karachi House Price Index
Karachi seems to have fallen in-line with the trends seen in the rest of the country. The house price index flat-lined, showing a minimal growth of 0.2%.
The index rose by 0.41 points and stood at 206.03 index points on December 31st, 2018.
Karachi Plot Price Index
Karachi Plot Price Index was the only graph that showed a significant increase of 4.26%. Part of the reason for this can be explained by the depreciation of prices earlier in the year.
The index stood at 233.49 index points after an appreciation of 9.55 points.
Islamabad House Price Index
House prices in Islamabad registered a minimal growth of 0.33% – an increase of 0.59 index points. The Islamabad House Price Index stood at 178.43 index points in December 2018.
Islamabad Plot Price Index
The Islamabad Plot Price Index fell by 0.8%, as the index points depreciated by 2.54 points. The index stood at 313.56 points by the end of December 2018; the same value as October 2018.
The real estate market has been quite predictable for the last few months. December registered a general decline, but overall, an insignificant one.
This means that real estate investors still await the verdict of the government on the real estate sector. The new mini-budget, and the beginning of work on NPHP, may offer some interesting changes in the months to follow.