Lahore realty sector seems to have become an exclusive shopping area for the upper middle class or the upper class only. Prices of land and houses have skyrocketed astonishingly and the middle class now seems to be a stranger in its own backyard. But there has to be a ceiling and I want to know if we hit the ceiling already or the madness will continue unabated?
Dollar has receded to new lows of 97/98 in open market. It tumbled from 105-plus to 98 within a month. It means what was available for $1 a month ago, will cost more today. I was wondering how feasible it is now for the foreign investment in the Lahore Realty Sector as the local currency gains weight? And if foreign inflows stop, will not the market cool down to some extent?
And even if the factor of foreign buying is not considered, how realistic the current prices are at the moment?
Yes i agree with you that the market is overheated. But in my view it shall go through some correction phase InshaALLAH.
And brother i dont think that Pakistani rupee is getting stronger, Defiantly, the dollar is losing its shine.
Why petrol prices haven't dipped? Why the prices of other utilities have not dwindled?
Anyway, getting on the track, real estate market really needs some correction. I say this is a baseless hike.
Brother Zain
Who Creates these baseless hike?
What about the sale purchase activity in lahore?
I thing the supply of residential plots is over enough as compare to demand. So why this hike?
Brothers. … The property market all around the world is on a rocket. … From london to ny to dubai to lahore to even malawi in Africa. … I had a guy knock ony door trying to sell me an apt kn kenya. I laughed him off. Today that apt is up 40 percent in a year. The volume needs to be turned down to prevent an ugly correction.
Zone 2 or Zone 5 Islamabad tou aik saal sey wahein khara hey. Hum Kenya air Malawi ka kya karein?
Prices in Lahore are stable rather increasing gradually. I dont see prices will come down in Lahore at least. Whole punjab govt focus is to modernize the Lahore then why not rich people from other cities shift to Lahore for the better future of their kids. Urbanization is the actual reason behind this price hike in Lahore.
Dear fellows, property price is always hiked by investors.
Since last price hike in Spring/Summer of 2013, Lahore's real estate market is stable/stagnant from last 6 months. Prices are increasing gradually only in the occupancy/construction areas and where development works are progressing quickly, and some in some societies due to local factors. For example Sui Gas phase 2 has appreciated between 6-10 lacs for kanal plots in last few months due to its boundary being met with Bahria F sector.
DHA's files prices have shown quite fluctuated bahvior, for example DHA phase 9's kanal files came down to about 45 lacs from 51 lacs and then went back to around 49 lacs. Bahria's market is on a halt for last few months. It appears that a lot of money that came into property from textile sector has gone back to textiles due to GSP plus status as exporters are getting good orders. Secondly Bahria Karachi factor has came into play. Many investors have moved there in hope for big gains. Another reason seems to be that a lot of people have their money held in Bahria and DHA's commerical plots which at the moment dont seem to show any growth in terms of gains. In fact many of Bahria's commercial files prices went negative. Moreover, a lot of tax evaders' money which came into property market due to Budget 2013 seems to have gone back into business.
I agree with Irfan that prices wont go down and may be stable for few more months. Prices may go up a little between July and December; the time when overseas Pakistanis visit home for Eids and Christmas holidays. However, if during this time, due to any factors investors money comes back into market; prices will move up relatively quicker.
@ Ilyas,
Brother the hike is created due to activity of investors, overseas Pakistanis and for sure inflation.
Do you think it is reasonable that commercial plots in the earlier phases of DHA are somehow equal in price to the same in phase 6?
So, it is the activity of investors. and when prices reach a limit they tend to turn back either in the form of correction or bubble burst.
But this time i think that the market will not crash totally. If there would be any price fall that would be a correction because investors are sensible now to play the game at the back foot.
@ Luqman,
This is what we have discussed many times before.... Few people will surely disagree but in my opinion prices of many top brands of property needs correction... After especially strengthening of the pak rupee currently .. So as every other commodity in our market as well. Esp all imported items.
@ Zain,
Dollar is not weakening currently, Rupee is gaining strength, or what govt officials are saying that speculative rise in dollar against rupee is reversing... And if in case the dollar weakens... It will proportionally make effect on you economy as well... As our currency is fully dollar based.
DHA market "was"in correction phase by past 4 months.Now it is stable..We are not observings/expecting further corrections in it.There is mix trend in different phases of DHA.In this month Phase 8 of DHA has gained 5-6 lac. Rupee/Dollar parity ratio can have both effects.Now there are many people who are investing in property,because of rising "opportunity Cost"of investment in dollar.
Secondly, DHA's property is product of A+ category (in economic segementation terms),middle-class or Upper-middle class people can't think of buying here.Put this class out of equation when analysing DHA.
You have to see also that how incomes are disperssing in society.
Prices in Lahore are stable now and will see an upward trend in near future due to possession given to DHA phases