Are these factors are relevant for property growth:
- Job creation?
- Trends of people moving towards urban area?
- Rural population around the city?
Who can win?
If there is a genuine peace initiative framework achieved with INDIA in the coming years then Islamabad will be of no match to the growth and development that will come to Lahore City... In terms of jobs, trade, businesses etc etc.
It looks little hard to imagine at the moment while seeing the past 65 year history. But who knows Mian sahib could achieve it this time... :-)
Yes, they are interlinked,
I think a lot depends upon three factors (in the order of priority)
Law and order situation in Karachi and protection to business community from mafias.
Peace talks with talibans
Balochistan situation.
If above factors start moving towards positive direction, then you should start pulling out your investment from Islamabad and Lahore real estate. Although it will take another 5 years before internally displaced businesses and population start moving back to their hometowns.
When this happens, it will send real estate market into another 10-year slump. So watch carefully. Phir na kehna khabar na hoi.
However, there are some new factors developing that can give unprecedented turn to economic activities in the country and that is, opening of trade routes from China to Gwadar and from India to Afghanistan and Central Asia. This will create businesses, new jobs and fresh population movement to industrial and trading hubs. Islamabad and Lahore are likely to get a lion's share in this economic revival.