The market has been slow for some time now. Prices have remained stable or steeped lower in many societies.
However
Whispers are that it is soon to pick up. I for one think maybe at the end of 2014 we will see some price rises.
When do you guys think that the market will begin to heat up again?
At least i cannot hope so for next 1-2 years ,as it will be a false dream,and following is my understanding[may be wrong]1=stability in our country
2=economic activities
3=ppl confidence
4=internal growth
5=security situation
if all 5 above are good ,answer is yes and vice versa,
beside that on ground some facts are,
PINDI/Islamabad real estate is based almost entirely on 3 big giants
1=cda
2=dha
3=bahria
only DHA is stable ,but its prices are very high for small investors,again its a slow rise ,so investors don't prefer
CDA prices are higher than dha and is only in reach of middle upper class,again very few small investors,and also delayed possession is a big headache,
BAHRIA is huge market ,only phase 8 is having more than 40000 plots so one can imagine level of business here its a heaven for small investors, but unfortunately some big crocodiles have shaken the confidence of small investors very badly,
so until some very drastic measures by bahria + for cda we need stability in the country , which is not very good now a days,
SO THE GAME WILL NOT TURN UPWARDS FROM PINDI/ISLAMABAD, may before next 1-2 years
Lahore,
will be the pushing engine ,if their is a wave of pulls for rest of the country ,and we cannot predict that, bcz in Lahore almost all big real estate societies are stable to plus,,,,BUT LAHORE needs political stability in our country to be in positive trends ,that's my guess
But Dk, there wasn't any political stability in last 5 years. Isn't it so that property markets are immune to political instability and rely heavily on other factors.
I have seen expert's comments as slow market is partly because of Bahria Karachi and Enclave 2 leading to investor fatigue. Another reason is that after rise in late 2012 and whole 2013, market is in correction phase too at many places.
You are right B.R Malik sahib,but before stability was not considered a factor bcz,where the investor had to go, after all money was there and small investors had to to inject it somewhere,
But this time small and average investors are smashed and crushed very heavily ,their investments last year have decreased in real value from 15-30% especially in bahria,and they know the cause this time[gambling and bluffing ]
so this time i don't think POST RAMADAN EID will increase the prices, bcz personally i think ppl [esp overseas will be very cautious ,and will prefer more wait],
BE2 AND BTK are the reasons for this shakened confidence of ppl,how could they be bitten twice by the same snake, this time they[overseas will choose alternative ways for investments,until very real shining measures are noted in real estate, this is my thinking
Yes. Market is not expected to pick up much till possession.
Bahria owes BTK & BE2,
CDA owes E-12 and many other sectors to restore confidence on it.
Frankly, do not have idea of DHA.
But again I would say, experts can shed light better.
The tycoons of real estate have already squeezed the last drop of investment from market. Now they are waiting for new blood to regenerate before they go for next spree. I reckon this would take longer than I expected, so my hunch is mid-2015 for market recovery. And this time center of gravity will shift towards Karachi instead of Islamabad and Lahore.
B.R.Malik, DHA also received a blow due to their alleged involvement in EOBI scandal. But, their projects are rock solid and did not get affected even in these bad times. DHA, like CDA is ever-green where prices continue to grow with the pace of development and house construction.
I think new set of rules are needed to regulate the evolving real estate market in Pakistan. If we take a deep look at the crisis, one of the main reason seems to be short term flipping where one can book bulk of files by paying fraction of the amount hoping that they they will flip them before next installment. In case of BTK and BE-2 this did not happen and dealer are stuck as they cant pay installments and cant recover the money.
This phenomena is very common in developed markets and mostly the reason for the property crisis. Real Estate regulatory authorities are therefore important to keep an eye on the market introduce new set of policies to ensure a healthy growth in property market.
I agree with Isloo Bro, as soon as market will show signs of recovery, these big giants will throw some new projects and again suck all investments thus starting the process of short term flipping.
I think this stock exchange behavior will continue under such circumstances
I totally agreed with IsIIo.
Regards
Market is Much slow now a days But its perfect time to invest because price are much less than last 6 months. Example: if a person buy a plot 6 month ago at Rs. 6 million now a day same location plot is available in 4.5 to 5 Million
Absolutely right. Greed is the name if game.
@ Isloo, Are you sure that market is not expected to pickup till mid 2015. Can you explain more if possible.
So what is the best place to invest now in Rwp/Isb ?
DHA & CDA only ?
These two places are at the top of the list to invest.