There is a big change of prices specially in d 12 g 13 g 14 g 15 f 15 f 16 e 16/17 b 17 i 14/16 . In g 15 6 months ago 60 x 90 plot price was around 62-65 lac now it is 1 crore 10 lac plus. G 13 30 x 60 price was around 55 to 60 lac and now it is 85 plus.E 16/17 kanal price was around 18 to 21 and now its 35 plus, almost same situation every where in islamabad what can be the reasons? Law and order situation of peshawar wazirstan queta karachi. Artificial boom by real estate agents/investors Ending of a corrupt government Black money ( due to tax immunity scheme) We should be careful now a days before purchasing in any new scheme or already high rated sectors due to peak prices
Ibrahim, I appreciate your thought full and thorough assessment of the real-estate market. We really look forward to such assessments from you mbs, pk1 and others. Inshaallah you will get the reward from allah. Please keep up the good work!
Ibrahim,
I have noticed that as well as i have been visiting this forum for a few years and the prices have absolutely sky rocketed.
Im therefore thinking of investing in some schemes where the prices are somewhat reasonable, so that they may appreciate more. Can you please share your views on :
1 - paf tarnol - is there a water shortage ? ..How's the development ??
2- pechs - is it better than paf tarnol or the other way round ?
Naval anchorage - how is that for investment ??
Army welfare trust - this was recommended as a "reasonable" option by one of the real estate agents...What are some of the factors that go against this scheme ??
Can you please share your expert opinion.
Thanks
Dear syed ibrahim,
Thanks for sharing this information.
I think the prices will remain stable if not increase further, i don't see any major decrease in any of those schemes listed by you.
People prefer to invest money in islamabad due to its relatively safe market.
Dear ibrahim bhai,
Lets not forget 2 very important factors behind the recent surge in islamabad real estate prices:
(1) islamabad has the highest population growth rate in pakistan 6% per annum (as compared to 2.7% of pakistan and 5.6% of lahore); and (2) record depreciation of pakistani rupee against us dollar (about 8% per annum as we speak).
The high growth rate in population is fueled by births and immigration from other cities of pakistan and return of overseas pakistanis who are after completing their working life abroad prefer to retire in islamabad instead of small towns and cities like chakwal, sargodha, mandi bahauddin etc. By building their home in islamabad, they can easily educate their children in good institutions like nust, islamic university, quaid-e-azam university and find good educated match for marriage etc.
And massive rupee devaluation coupled with inflation means that the increase of property prices that we see in the market is not as big as it seems. In fact, the real value of the property has not changed so much. This is because rs 30 lakh now has the same purchasing power as rs 27 lakhs a year ago.
And another thing to see is whether there is a sudden spike in real estate prices or is it a steadily increasing graph. I thing prices of property in newer areas have increased more or less steadily but some higher growth rate in the last one and a half years is because of the karachi situation which has impacted priced mostly in 3 cities:- lahore, islamabad and multan. In lahore and islamabad, bahria town and dha have benefited from the unfortunate situation in karachi. In islamabad, jkchs, interior society, multi, g13 and g14 have also benefited. People affected by adverse operations in northern areas, drones and waziristan have moved largely to places like barakahu etc.
My conclusion is that over the next 6 months, property prices is islamabad will increase even more. When the national assembly sessions begin, a new bunch of politicians and their circus (of workers, supporters and opportunists) will descend upon islamabad. Many of them will set up homes in the capital - some will rent property in cda sectors like g-9, g-10, g-11, f-10 and f-11. Others may buy homes. This will push up rents and increase the guess-house business of islamabad.
But also, invariably, this kind of activity will create pressure on the prices of residential property in and around islamabad.
Frankly, i dont see the prices coming down if you consider the next 6 months as a whole.
I agree with the comments of pk1 regarding property situation in islamabad in the coming year and so.
Regards,
Dear all Thanks for the replies but a little change is in market almost specially in developed sectors there is a minor decrease but i personally also think that these prices will be stable for another few months inshallah. Mian sahab 100 days agenda and june budget will also impact on prices.
Ibrahim sb,
I think due to the two reasons mentioned above by you, the market will slow down a bit for some time.
Regards,
I agree with syed ibrahim. If they impose a high wealth tax, then prices may come down.
And another point is that now a days sale purchase in main sectors specially price above then 70 lac is slow however small projects sale purchase is good like f 16 e 19 b 17 etc that means investors dont want to invest there whole money in a single bucket
Another reason is the recent rise in the stock market. People booking profits in a rising market will then reinvest some of the money in an asset such as property. In addition the outlook for gold has worsened globally. Gold prices have tumbled with little reason for it to start going up again. Makes property attractive as well.
However, rising prices in sectors which are not developed completely is mostly due to speculation, while rising prices in sectors where houses are being constructed and people occupying homes, is a different case altogether.
It seems to be to be an artificial price boom created by large real estate developers, as nothing has changed on the ground in the last few months.
Nice discussion, in addition to already discussed above what actually happened in islamabad property surge was the inflow of money from different sectors of life:
- Cash inflow from kpk, waziristan and sawat due to voilence.
- Cash inflow from karachi for same reason.
- Major cash came from the phasing out members of previous govt's from both kpk and centre. As property is always a safe investment and one of the best means to white the black money.
- At the same time when bank interest rates are low with ailing economy and lack of business investment opportunities, one is for sure to see all the investment moving from all sources and means to the real-estate market.
There is alot more that can be discussed on this topic
Did the people of kpk, waziristan, swat and karachi all of a sudden decided to invest in islamabad and pushed prices up in islamabad? The answer is no.
Did all the politicians decide to rush and decide to buy plots in the last few months and was that money being kept as cash under the mattress? No. A lot of this money would already have been invested well before the last few months and a lot of it would have ended up abroad.
Did everyone just wake up in the last few months and decided that they were not getting enough interest from banks and businesses and decide to buy plots? No.
This discussion is proving very beneficial for the new members/ visitors.
Regards,
In my opinion the rise in prices in property is not due to 1or2 factors. There are many factors like rupee devaluation,low interest rates,kpk,queta,gilgit and karachi,s situation and even decrease in gold prices. Property is also considered safe investment compare to stock or other type of investments. There is also shortage of residential options in islamabad. The rent is also gone up which clearly the indicator that people from other cities move to islamabad due to uncertain situations in above mention cities. In my own street 3 families shift from kpk in last 2 months and most of the investors are also from kpk and karachi. I think prices will not come down especially in cda sectors and in zone 2.
A lot of issues mentioned have been around for many years however in the last few months prices have suddenly gone up by a significant amount.
There is no shortage of plots in the islamabad area except for zone 1. Bt phase 8 and dha valley are in the pipeline and will have enough plots available to make them large towns in their own right.
Prices have gone up i believe due to large investors and developers who are the market makers increasing prices in the hope that due to elections new government will come in and people from abroad will start investing in real estate again like in the early 2000's. However at these high prices i think that we will see a reduction in sales and purchase.
The price hike is artificial as nothing has changed on the ground in the last 5/6 months to justify the massive price increases. In a few years things might change but currently the situation on the ground is no different than it was 1 year ago or 4 years ago.
I am not been able to post my comments on discussions, what is the reason?
Thanks.
Dear arshad I agree with u that investors are a major point but i disagree that this is the only reason. Our people behavior is that whenever property price start increasing everyone want to but and due to more demand and less supply prices go up not even in property same case in dollars gold. Investors are the reason to increase the price but not the only reason, property prices were stable from last 2 years at that time investors were in market but they were unable to increase the price so definitely some other reason are there including this reason. I personally know many people of queetta and karachi who invested in islamabad ( last 6 months)
For example how can a 10 marla plot in bahria town phase 8 that was selling for 12 lacs several months be worth 30 lacs now. What has happened all of a sudden to push price up by close to 3 times. Are there more investors out there wanting to buy or are prices being manipulated by the big developers and investors in order to fleece any foreign buyers that now are thinking about investing in pakistan again due to new government?