Dear all,
I have noticed that real estate prices in islamabad have not progressed in any meaningful way since 2013. In the same period, real estate prices in karachi rose by 200% and in some cases, up to 400%. Lahore also experienced good gains rising by 100% or more. Amidst all this, why did islamabad lag behind?
What do experts on this site have to say about this? What's the reason isb real estate has performed so badly?
P.S. I can support this claim with actual data :)
Ahmed sb u are right.Isb market especially zone 1 is depressed for last 3 years.Except some places like dha bahria enclave gulberg greens,no significant gains for long time.
I totally agree with you. Have seen the same response especially for those putting less money in form of files …May Allah help those who invested their hard earned money in this beautiful city
Saadi sb,
It’s actually sad that Isb saw little to no gain, especially in Zone 1 and Zone 2. Zone 5 may have fared better, but still significantly underperforms Karachi and Lahore.
Those who chose to invest in Karachi and Lahore in the same period, have fared very well.
Good observation. To me, Islamabad market looks high side since 2012 perhaps, especially when there is no significant development activity going on from developers side except few places … People are just trying to cash the government projects. In this situation, a careful investment is the only option for now. Particularly, prices rose in Zone II after airport/metro initiation and may be due to CEPEC. Zone IV didnt get this benefit and was already overpriced by investors… I am lucky that i decided to invest in Zone II rather than Zone IV in the end of 2015. For Karachi, i would say that better security situation has resulted in better valuation of the land there.
Ahmed sb unfortunately u are right.I always say that Khi and Lhr people are more seasoned businessmen.Isb lacks business acumen especially people are in the habit of band wagon following in isb.
All brothers are agreeing that isb is lagging behind. But some solid reason not coming out.
Lahore and Karachi has industry money. What does Islamabad has? Poor Govt. Employees or people working in service industry or some Pakistani Badooz who work in middle east and will never get their citizenship there. So actual demand is not there to support real estate sector.
Still we see occasional satta-bazi here and there. Like Bahria has recently diverted all their investors/dealers in to Enclave so there is some temporary rise in prices similar to the one we have seen previously in Phase-8. All people sitting in Enclave are the ones who we have previously seen in Phase-8 Rawalpindi.
There are many other reasons, in addition to what listed above.
CDA runs at a turtle pace, compare it with DHA Lahore or even LDA. Lahore has many private societies performing well like NFC, Sukh Chayn etc. Lahore is getting metro train, ring road, etc. CDA cant materialize margalla avenue since decades. Chariman CDA delivered orders about C sectors and E-12 development, but nothing moved.
Alrana.Sir u are talking about e-12,they are so apethetic,incompetant and corrupt that they cannot even renovate the sectors such where much construction activity has taken place e.g d-12,g-13,g-14/4 etc.Consider the case of park enclave,that place was launched before bahria enclave and where bahria enclave is now in terms of development is visible to everyone.Also i personally feel that the people of isb has tbe habit of band wagon following instead of investing while keeping in mind the rational factors.
Alrana.Sir u are talking about e-12,theyvare so apethetic,incompetant and corrupt that they cannot even renovate the sectors such where much construction activity has taken place e.g d-12,g-13,g-14/4 etc.Consider the case of park enclave,that place was launched before bahria enclave and where bahria enclave is now in terms of development is visible to everyone.Also i personally feel that the people of isb has tbe habit of band wagon following instead of investing while keeping in mind the rational factors.
Is there a chance that metro bus from Peshawar mor to new airport will increase prices in G-13? I am looking to buy a 4 marla plot for 75 lac.
Only zone-2 rise in last one year.CDA sectors G-13/14/16,I-14/16 and some societies around new Airport.
It's true investors get good return in Karachi,Lahore and in Gwadar.
Most people are investing in files which is in less amount and open files(no tax,no transfer fee) I think this is the reason no rise possession and big budget properties.Investors are avoid to invest where is tax involve.
Regards
In Islamabad property market 20% rate of return over a year is possible?
I know it cannot be predicted so easily.. Just a calculated guess ?
Nadeem Sir,as far as i know,g-13/14 is stagnant for last 3 years.No price appreciation.
Islamabad in major earthquake zone, big earthquakes recorded in recent years on regular frequency.
If you visit bhria ph 8 can find many houses wuth big cracks due to filling. .. Discouragement fir investors.
Prices in g 13 have been increasing gradually over the past years.
MUhammad sb.Sir one of my relatives has a plot in g-14/4 and he was telling me an opposite story saying that the prices are stagnant for last 3 years.
so the reasons for lackluster picture in Islamabad are:-
1) CDA's incompetency and snail's pace movement at developing new sectors
2) Islamabadis having a herd mentality. Everyone jumping on to the band wagon when prices move higher.
3) Lack of real businesses in Islamabad. Most of the residents are salaried people and therefore, have neither the money nor the acumen of the residents of Karachi and Lahore.
As for the first point. CDA not developing the new sectors should go in favor of the existing pool of plots. The market is supply and demand driven. If the supply is low, the prices should move upwards.
I guess there's more to the picture? How about net migration? Did the picture change dramatically over last three years? Are companies moving their HQs out of Islamabad?
Once most flight operations move to the new airport, we can expect a substantial upward adjustment in Zones 1 and 2 inshaAllah.