Hi all,
Unfortunately my observation is, it seems like if property prices are on decline in Islamabad almost everywhere!
Potential reasons could be latest news about dharnas as they appear to continue indefinitely and more aggressively. Rumours about the status (will survive long term or not) of present government are also having an impact.
Upto some extent weaker signs of global economy or another 2008 crisis are an added factor.
Definitely no good signs for short term investments from small investors at the moment!
We need to discuss following...
1) Wait for anything to buy until at least 6 months?
2) Islamabad property boom - coming to a halt or negative?
3) What strategy? Both long and short term?
By the way, seems like dharnas/jalsas/unrest/uncertainty will continue until toppling the present government!
Regards
In my view, Dharnas are not the only reason for this decline in prices.... This decline started much before the dhranas in Islamabad.
Regards
So how long this decline will continue and what are the factors?
To me , main reasons are abundant supply in comparison with demand. A lot of taxes on transfer of plots make investors shy. Terrorism decreased which eased pressure on urbanization. 2013 correction phase is still not over.
Every investor knows that there will not be any property boom in PML- N era. Government will stay.
I hope experts shed light on it.
Correction of 2013 price boom...fake supply (files without land even layouts ) taken away liquidity...overexpectation to overcome energy and other crises in a short time after elections..
The market will recover only after some energy or corridor projects takes reality+some liquidity recovered from the fake projects...this will take time ..Allah knows the best but shouldn't be optimistic before 2017
December and January traditionally bring a slow down in activities in the local real estate market. However, I think there are no indications yet that we are out of the overall correction phase either. So we have to take it month by month at this stage.
@B.R. Malik. The boom in property last year was very much during PML-N govt and the current upward swing in Karachi market is also during their tenure. Although I do agree that PML-N does not take a favorable view of real estate market, but I don't think they are completely antagonistic to this sector either.
Malik Sb I agree with you on the supply-demand thing but I think urbanisation is growing at an extremely rapid pace. It is not terrorism related, al though it may seem to be but that was just a one time thing for a short time.
Islamabad is a unique case as it is still very small compared to Lahore and Karachi and it has a lot of potential for expansion. At first, it was just a government headquarter mainly but now it is changing into a large commercial city (like Karachi or other big capitals of the world that are commercial as well).
But Islamabad's own economy to feed household is not good. Lahore and Karachi are versatile. Islamabad is not located at economically strategic location either.
Seems from your posts that Bahria is catalyst for boom. From Karachi it seems so and Enclave in 2013 boom also indicate so.
What is the short term situation in market? Will property prices pick up in the coming 6-12 months? When will this correction phase be over…
Political situation is again tense. Political stability is very important. Property boom of Musharraf era never recovered after Chief Justice first sacking.
Yes Malik Sb… I am quite worried as well. Ya to Martial Law lag jaega ya Civil War, Khuda na khwasta…
Martial law is better then civilian dictatorship
Cartel of real estate comprising big seith and generals are actually controlling property prices. The boom of Mush time sync-ed with international bubble plus Gawadur factor and Bahria-8 files and these fraudsters made billions.
Then again in 2013, this cartel drained out the last drop of market liquidity. Hence it is not demand-supply issue, but more of purchase power of small investors, which, unless restored, will keep the market low.
It looks as the market will move with the same pace in coming 6 months or so… Just my personal opinion…
Political stability is one of the major factor impacting cash flow. The other point malik sb pointed out very well ' PMLN Government.
They usually drain the investment from real estate and pour it into other businesses like energy,steel,infrastructure projects of roads and fancy cosmetic make over of Punjab and to them it is Lahore only.
Investors confidence is directly proportional with economic stability.
For the time being its a HALT.
Hope it kick somewhere soon but realistic approach is it would take at least more then 6 months to regain confidence.
How a common man can shift his realestate investment and invest in PML n projects of energy, roads and cosmetics PMLn projects etc…simply we r too much…lol