I dont know much about pindi and islamabad property but due to my small research i think satellitte town rawalpindi is appreciating alot in past decades or still going very strong. Is this area was hot from forever? What is the history about this area and why it is still expensive?
Being a resident, I can share a few aspects that may be linked to the property appreciation and genuine demand of the Satellite Town Rawalpindi (ST. Town).
- General Layout of Satellite Town
Satellite Town is much older but well planned and like any modern housing projects of today, it is mainly divided into 6 blocks (A to F) and some additional areas like 7th road. Different blocks have different value of real estate A, B, C blocks are more expensive while D and F blocks are better designed (parks etc.) and still very attractive due to price factor.
- Utilities & Civic Amenities
All utilities were readily available years ago. As such in critical times as of now never faced shortage of Sui Gas and almost much less or negligible trouble with household usage water even in the extreme of summer time.
- Location
One of the strongest factor with all prime parts of ISB and RWP in easy reach through drive or public transportation. Metro Bus that passes through the heart of ST. Town has also resulted in an increased value both for commercial and residential.
- Educational Institutes & Commercial Factor
Some of the best institutes (from pre-schooling to Ph.D. degree) of ISB & RWP are in ST. Town and classical commercial areas like Commercial Market etc. are central part of ST. Town. Lots of outstation student and workers have settled in in last few years and that has resulted in more economic uplift as well as more demand for hostels or rented houses.
Also, some decent public hospitals like RGH, Holy Family are in ST. Town and Saidpur road (C, D) block has mushroomed up like a small medical city in the Town.
- Rental Values
House are in big demand, especially for rent who cant afford their own. A 5 marla upper portion can easily be rented out on 30k/month approx, while 10 Marla lower portion only can touch 50k - 60k+.
- Cleaning and Sewerage
In last 4 - 5 years, the Turk company in contract with Punjab Govt. is looking after the garbage collection, sewerage and beautification on routine basis. The garbage trucks each evening around 11:00 pm picks up all boxes deployed at multiple locations within each street, free of cost.
Its like any prime I or G series sector (excluding I-8 that is more classy and spacious) but a bit more populated with RWP vibes that makes it crowded and more activities compared to ISB sectors which are generally a bit more quieter. My oldest memories of pricing go back to primary school days (around mid 90s) where a Marla was around 2 lacs in D block that is now around 35+ lacs at min. Commercials have sky rocketed due to Metro, schools, hospitals etc. and can match with prime locations of ISB. For sure, I have never experienced any slump or stagnation due to the fact that main road houses have been continuously demolished to construct commercial plazas, where back streets have been taken over by modern houses and a few by branded schools.
In my view, as a summary ST. Town has been and is one of the hot real estate slots mainly due to
- Location
- Ever progressing development
- Metro Bus Factor
- Schools, Colleges, Universities Hospitals
- Civic Amenities (Gas, Water) etc. that to date had no issue.
- Genuine Demand and Supply
There can be more pros and cons but these are some at the top of my head and based on personal experiences as a resident. Hope others can add here, most welcome!
Very good analysis imtiaz shb.
Thanks Imtiaz bhai for your great response. Many thanks!
Excellent analysis by Imtiaz sahib as usual.
What is the price range of double story 5 Marla house??
Normally 5 Marlas
Block A, B around 2.1 to 2.2 crore+
Block C around 2 crore
Block D, E 1.6 crore+
average approximate figures. Near to main 5th, 6th, 7th road can be more as there at some locations Residential + Commercial gets mixed.
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Thanks Imtiaz, about same price or a little lower than G-11.
One reason only. All residential houses can be turned in to commercial plazas. Most of the old businessmen from Raja Bazar and surroundings are moving here, buying couple of houses and constructing big plazas.
Eventually all this will become a big business district like inner city Rawalpindi.
Don't know about the legality of all this but so far even new government is not stopping any such conversions.
"One reason only. All houses can be turned into commercial plazas"
That 'one reason' has repeatedly proven to be wrong, time and again, in real estate across the globe! Basic rule of thriving commercial or adjacent real estate is under supply or just below the demand level. One of the primary reason for CDA Markaz Commercial ever in demand is control and avoiding over supply proportionate to the population. Over supply of commercial have proven to be a disaster, Phase 7/Phase 8 yet to recover from that and Gulberg Greens also on the same path of oversupplying the commercial that devalues the commercial!
Putting the facts straight!!
Commercial has grown significantly, so did the population. Its not as organised with Markaz in Center like classic CDA sectors but not that over commercialized either!
Its not under CDA or some housing project. It mostly is open land and constructions so a bit less regularized. Main boulevards on any society will have mostly commercial anyway. Most of the commercial in proper blocks (A to D and F) belongs to Colleges/Institutes, Clinics, Food Chains and marques and other small business mostly on the outer bound of the residential. For example, other businesses like Suzuki Show Room, Apartments, Warid Franchise didn't got much success and had to shut down and those vacated building got taken over by successful businesses mentioned above. The business that thrived most is educational institutes and clinics/hospitals and they represent the majority of commercial constructions in recent years. Business and Plazas in Raja Bazaar have completely different purpose and utilisation then most of the other real estate slots in city.
The only business in and around Residential are schools, shops. Yes, it can be better managed and regularised but as of now things are still quite ok. Parks in D block and post dinner walks are still best - not too quiet and not too crowded.
RDA is quite strict these days with building by laws. There can be glitches here and there but there is a control and regulation. Commercials at 6th road (Intersection of D, A) block have resulted in more population and activities but main roads are properly maintained and in proper shape.
The only reason satellite town is hot cake, despite highest crime rate in rwp/islamabad, is the shop/business owners. Who do not want to leave this area due to proximity to their businesses.
The same reason why I-8 is as expensive as F-10/F-11. Proximity to pindi as i know few shop/business owners who reside in I-8/4, use Metro to go to their shops & they never use their cars to go to shops (Parking issues mainly)
Imtiaz bhai your point is this:-
Too many houses of Satellite Town will NOT be converted into commercial properties because when that process happens, there is progressively less incentive to convert further houses into commercial plazas due to oversupply of commercials which lowers the value of commercial properties in that area.
But my observation is this: Satellite Town may keep attracting more and more commercial activity due to lack of posh commercials in adjoining areas. Areas around main Murree Road are full of old bad commercials such as Raja Bazaar, Sultan da Khoo, committee chowk, Saidpur Road commercials etc.
On the other hand, Satellite Town residential houses are being converted into relatively posh shopping centres with boutiques, bakeries, salons, restaurants etc. So the potential is still tremendous. The demand for shopping in Satellite Town is led not only by residents of Satelitte Town but also from people around Sixth Road, Saidpur Road, Dhok Kashmiria'n etc. even in some instances from Islamabad sector I-8 etc.
Pakistani-1 brother you are quite on the mark with your observation and analysis.
I was referring to the claim: "One reason only. All houses can be turned into commercial plazas"
Yes, commercial is on a rise in last few years, especially post Metro operations and also the fact that due to losing elections last 10 years (the constituencies that fell in their pockets even at the time of Musharraf) PML had quite generous development funds for RWP and to a large extent ST. Town.
Plazas and high rise are growing but on main roads like 5th Road, 6th Road, Double roads etc. That are like the main boulevards and their adjoining streets. 2 - 3 streets in the back no body cares about the proper commercial/plaza so there still much less commercial activity and ratio so far is quite ok, in general.
Agreed with the fact that commercial is growing fast and one primary reason for ST. Town being attractive and appreciating but not the only reason, I believe.