Interesting point Hamad!
My perception on this as below. Again these are personal views.
Black Money as one of the main players in Pakistani Real Estate Market is a strong enough theory but it lacks a substantial evidence as to what extent. There is no doubt about its role, however, magnitude is not quantifiable. Previous Govt. did offered incentives to bring in the money with some predefined taxes to make it white but that is still to be reflected with its injection in the real estate.
Supply and Demand is the main reason that makes the real estate to flourish, even if there are hiccups along the path. 'Supply-Demand' at times may sound an overstatement but its a fact too. The reason for growth in coming years.
- The Rise of the Small Players: F, G, I Sectors, BT, DHA etc. developed parts represent a concentrated market with more end buyers settling down or rental yields rather than high gains. However, in recent years the emergence of low cost societies has proven to be a success. For example in ISB CBR-2, ICHS, etc. where you can get a file/plot in about 2 lac/marla has introduced a new model of small investment with healthy growth/demand. Similarly in Lahore, Al-Kabir Town has gained good reputation and growth.
Fact 1: Low Cost societies are on a rise compared to some big names. These low cost societies may not have same media/marketing coverage but people trading in them have made decent revenues and have attained fair enough growth appreciation (doubling in few cases in last 2 years). As per my knowledge, talking about the emerging ISB market some underdogs like CBR-2, ICHS are doing better than Media dominant Capital Smart City, Taj Residencia, Park View etc.
Diversity of Real Estate Inventory: Both ISB and RWP are growing beyond their traditional boundaries, i.e., Fateh Jhang, Chakri etc. with decent options on low investment. People with fancy real estates offices in Blue Area etc. on %age wise may be making less than those small site offices in those emerging locations.
Fact 2: Cities expanding beyond the developed areas have lime lighted societies that may be a bit far (as of now) from mainstream city but they represent a good future and growth.
Size of the Property: Previously 25 x 50 was about the lowest of the benchmarks for a plot/house. But now smaller plots of 2 - 3 Marla are more in demand that can sell quick and construction can be cheaper, overall.
Fact 3: Small societies or open land with smaller dimensions of plots/constructed units are more in demand than the established ones that offer the traditional sizing of 5, 7, 10, 20 Marla etc.
Having said that, Market is slow, now denial to that. Previously, I have tried to furnish some figures on the shortage of houses, people needing a roof on their head etc. on a thread (some thing on PM initiative for Housing) that more objectively reflected things in the context of projected growth and demands.
162 days ago