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.
2785 days ago