Assalamualikum, i am really amazed that in almost 8 months, the prices of g sectors (esp. G-13,g-14,g15 e.T.C) have shoot up alot. Almost 20 lac difference has been made.Please tell me, will these prices go up or down. As my experience, before and during elections, the prices raise like this but then they fall..Please guide me. Should i invest now or wait and how much should i wait?
Also tell about investment in soan garden.. Thanks
20 lac in the sectors that you mentioned is probably a smaller rise in percentage terms as opposed to other areas where prices have gone up by 50% or even doubled in the last few months. I doubt that prices will fall as more and more houses are being built there and number of plots will be decreasing there as number of people wanting to build may increase as the area becomes more populated. There may not be further price increases for a while as many people would not be able to buy as a result of the increased prices.
I think that you can afford to wait as i don't see how prices can keep on rising independent of the economic condition of the country. Prices there even if they increase would increase at a slower pace than some other areas a bit further out. On the other hand if you are looking to build a house there then it maybe better to buy as prices are unlikely to decrease in an area that is already populated.
Soan garden is a good scheme and prices would be cheaper than G13 however you would be a bit further out of central islamabad.
Dear umme afia
I agree that prices have increased vary far, but i would not say that these are artificial.
I don't see them coming down a lot in the near future unless something very bad happens. Allah forbids.
There might be slight up and down variation.
Regards,
There is an overall spike in prices as far as I can see. Not just in Islamabad but in Lahore as well. Economic conditions, as Arshad said, are not too flattering but I have to point out one fact here that there is a lot of demand for property in both Lahore and Islamabad. This is perhaps one of the only reasons why prices have continued to rise for the most part.
Soan Garden... is a good location, no doubt but as Arshad mentioned, it's a little too far away from the central city. Many would argue that the city centre is shifting but it can't shift that soon so if you're buying from an investment point of view and would want to sell then maybe you can consider some other localities as well.
Only the future will decide whether our assessments about the prices will turn out to be true. However, personally i think the price hike is not artificial. It is not even as huge or sudden as it seems.
Prices have increased largely over the last 1 year period. And this can be attributed to (i) massive devaluation of the rupee; (ii) expectations of good governance of the next government (people had high hopes from both pml-n and pti); (iii) migration into islamabad, lahore and multan from violence-hit areas of pakistan.
Also, overseas pakistanis as always continued their support to pakistan by sending their money for real estate investment. When you transfer a huge amount from a bank abroad to pakistan, even the philippino officer of the bank asks if it is for real estate investment in pakistan even before you can tell them the reason!!
With the change of government, the following scenarios should be considered for the real estate market:-
(i) overseas pakistanis expectations will rise even more and they will continue to invest their savings in real estate at home;
(ii) the devaluation of rupee will continue until mian sahab can improve the current account deficit and the balance of payments (and there are no signs of how he can do that unless he can get foreign loan from imf or foreign countries);
(iii) unrest in northern areas will continue unless mian sahab's negotiations can be successful (of which i have serious doubts because mian sahab is not willing to offer anything concrete to the other side); and
(iv) violence in karachi does not look like subsiding because now a fight is starting between sindh government and opposition (i hope they cooperate for peace but it looks like they will fight for control of karachi, hyderabad through land and other mafias).
So the factors for upward trend in islamabad, pindi, lahore and multan will continue. However, some investment from overseas pathans of waziristan and swat will now divert from islamabad to peshawar because of pti's expected good governance in kpk.
Only one possibility of short term dip in prices:- imposition of huge wealth tax in the coming budget!!! In that scenario, prices will see a real and short-term dip. But again, imposing wealth tax to pull money out of real estate and into commercial and industrial sectors to boost gdp and economic growth will not work until the load shedding problem is solved.
Very nice summary of the current situation and future forecast pk1. This is very beneficial for starters like us in this field. Really appreciated the insight.
Regards,