Prices Rising Faster In Zone 5 Or 2?

Property Updates Real Estate Trends
#1

Let me start with a clarification: this question is not about the zone 2 vs 5 debate we often see on this forum, so i am posting it separately. I am simply an investor who has invested in both zones, so for me, there is no personal favorite as i have benefited from investing in both.

Since i try to remain in touch with the ongoing trends, there were some suggestions that the property market would gather pace after Eid. Its been almost a month since Eid, but my personal observation is that prices in parts of zone 5 seem to be rising more steadily, while those in zone 2 seem to be taking a break.

I think it might have something to do with the fact that the key infrastructure projects related to zone 2 have got delayed e.G. Nbbia (now expected in 2015), margalla avenue(unclear) and sangjani interchange (now expected in January 2014) and we also now have questions over the approach road for the new airport.

My question to fellow forum members is whether this observation is correct or not? If yes, whats the analysis based projection for zone 2 price increases till say february 2014 (next 6 months). I know this sounds strange but is there any correlation between the price movements in zone 2 and 5? (whether direct, inverse, sequential etc.) thanks.

#2

According to the prevailing trends,zone 5 is rising faster…

#3

It looks like in the near future property experts might say "Zone -5: A Safe Haven for Smart Investors". We know zone-5 is already a cool place to live. The leading role of zone-5 could be because of it relative height, better managed, and generally less congested as compared with Zone-2.

On the other hand, in Zone-2 there is a mix of too many societies and private villages/homes with varying degree of development standard. For Zone-2 GT road has an interesting role; at one end it signifies nearby societies but at the same time societies/land on the other side of GT road is not considered part of Islamabad to many people.

Zone-2 is likely to have commercial use after development of H-14-17 sectors. But until then no genuine reason is apparent that this region may intrigue a plenty of people. But this all is a conjecture, lets see what actually happens next:).

#4

Thankyou for your comments Mr Saadi and IB....Its an interesting situation this...for quite some time now, zone 2 has been a favourite for investors (including myself) and I think the fact that it has a number of large scale infrastructure projects lined up has been a major reason for this interest. On the other hand, you dont see that kind of big govt projects in zone 5, even the expressway ends around the airport!

So far Zone 5 has been viewed favouribly by genuine buyers but hasnt probably attracted proportional interest from investors, as compared to Zone 2.

The million dollar question right now is...is this a temporary phase in the real estate market of Islamabad, or are we reaching some kind of tipping point where the balance is beginning to shift? I, and I am sure many other prospective investors would like to get an answer to that question, possibly followed by repositioning their portfolio if required. Further suggestions and input will be highly appreciated. Thanks!

#5

Http://www.awaztoday.com/News_Police-foil-another-terror-bid-in-Islamabad_1_36670_Political-News.aspx Plz read the link...Now thats the point where dha and bahria takes the lead...This will never happen in dha and bahria town.

#6

I think zone 2 are rising faster. The only societies where prices are rising rapidly in zone 5 are big name brands such as bahria and dha. If you look at other brands prices are not rising as much even a minimal. Mainly when there is a price hike in zone 2 - most of the societies in zone 2 prices increase immensely. That’s my opinion anyway…you may agree or disagree, and price hike may change now that ive mentioned this.

#7

Thankyou Mr Saadi and Sheikh sb...regarding that news story, I think very few ppl would have doubts about the quality of development and facilities provided in these two large schemes (Bahria, DHA). Furthermore, I think these two schemes have such a significant footprint, that zone 5 has virtually become synonymous with them, even though it has a lot more to it than just Bahria & DHA, and much of it is way below that standard, as Sheikh sb has rightly pointed out.

Now I am not a panic investor, and a couple of plots I have, were purchased almost 10-15 years ago! My question to senior members is that at present I have 75% of my islamabad real estate investment in Zone 2 and 25% in Zone 5. Would it be a wise move to make it 50-50, considering that this will involve disposing off 1 or 2 plots in zone 2? or would it be better to hold my position for now? Thanks again!

P.S. My question is Purely from an investment point of view and I have no intention of building any house for living purposes.

#8

@Syed Amjad sb if some activity starts for the initiation of cda economic zone,then prices will increase exponentially in zone 5 especially bahria town and dha will be very very expensive…

#9

Shifting some money from Zone-2 to Zone-5 in order to create balance in your investment is not a bad option either. But, I personally dont see any harm in having investment in Zone-2 as the rates are appreciating at steady pace. Regards

#10

Thankyou Ihsan sb for your input. I agree that prices are still rising specially in some parts of Zone 2 but the rate of growth seems to have declined, or atleast to me it seems to be trailing bahria at the moment. I am longterm optimistic on zone 2 but I just think that for now, it is not that strong an engine that can provide rapid growth in investment on its own, therefore thinking of some diversification.

@Saadi_Aquarius: Sir I have heard the news about the CDA economic zone, but how long will it take to materialize, I am not sure. However assuming that something is already in the works, what do you think could be a good investment in Bahria to take advantage of this development? I already own 2 plots of 10 marla each in Phase 8 Sector D. What other options would you suggest in around similar budget? Thanks!

#11

Sir all the zone 5 would gain if the project is initiated but dha and bahria will gain more as they have very large density of customers…I would recommend you to retain those plots…

#12

Thankyou Saadi sb for that advice…since I am thinking of increasing my holding in Bahria, I will offcourse also try to hold on to what I have already bought. In addition I am also looking to snap up some other good deal if I can. Do you think a 10 marla plot in A block is a good buy for investment at this time as its prices seem much lower as compared to rest of phase 8 and is just opposite the overseas block?

#13

Zone 2 societies and some related projects are getting some bad press these days. Here is the latest:

http://e.jang.com.pk/09-11-2013/pindi/pic.asp?picname=539.gif

With the ongoing supreme court hearing on the new airport also underway, I suspect we might experience a lean period in this zone for a couple of months....and hopefully after that, things would start taking a turn for the better InshAllah.

#14

Sir block A is just ok for investment because its land is filled…Go for overseas block or B,C blocks etc…

#15

Thankyou Mr Saadi, I will surely look into that option. I am also considering bahria homes for rental income or a near possession plot in H block or F-4. Thanks again for your guidance.

#16

No problem sir…If u you want a home i would recommend you to buy a 5 marla plot in safari and construct it by yourself…Also F-4 plots are without possession and i do not recommend you to invest in the properties without possession…

#17

Saadi sb I wish I could do that but I have such a busy schedule that it is almost impossible for me to get a house constructed immediately, but your suggestion is valid as I know it might cost me less at the end of the day. I think 5 marla plots are available in Ali block and Rafi block only? Which one would you recommend more from a rental perspective in the future? I think Rafi block is more expensive.

#18

@syedamjad, you can shift your investment to balance out your assets in each zone, however, since you have had ownership for a long time you are likely to feel the fruitfulness shortly so if I were you I would keep them especially if they are plot files instead of possession plots and when possession is given the prices will increase. Its upto you anyway…I would keep them as they are in my opinion good investments that will reward you especially if you waiting for possession.

#19

Sir rafi block is good to invest…

#20

Thankyou Saadi sb for that advice. I will explore this option further, and if I find it managable given my constraints, I will get in touch with you.

@SheikhAbdul_A. Your advice seems fine but maybe I wasnt able to convey my concern properly. Actually all plots that I have bought over the years, whether Zone 2 or 5 have three things in common which make them "cherry" plots, as I like to call them! These are:

  1. All plots are full possession plots with complete infrastructure.
  2. All are corner plots.
  3. All are either on a main road/boulevard or very close to it.

My main concern is if I dispose off any of these "cherries" in Zone 2 to diversify, and within sometime Zone 2 gets back in action, I could lose out on big gains which my new investments may or may not compensate. I dont have enough free cash to buy anything worthwhile without disposing off any of these plots, so in kind of a fix here. I am now thinking of buying something jointly with a friend/family member in Zone 5. Lets see what happens.

Get the Zameen App

Buy and Rent Property faster and better
using our app.
Scan the QR code to
get the app

Get Connected

© 2007– Zameen.com. All rights are reserved.