Where to buy plots now in Bahria town lhr to earn a handful in minimum time, all main blocks are already high … ???
Thoughts of Bubble Burst??? I am also concerned about that. The prices are rising rapidly. I hope its not a recap of what happened back in 2008.
Regards, z@in N@deem
Bahria town and dha lahore prices increased more than double in just last one year. One big reason is the rich people from karachi and quetta are moving towards lahore and islamabad as these cities are comparatively peaceful.
To me the things look OK, as the increase is supported by the ground realities, like inflation, devaluation of rupee, law-in-order situation etc. So, don't think that prices will decrease dramatically.
Regards
To be on safe side Just invest in Possession Plots not files and secondly Invest in those possession areas where rates are still low. I mean areas where property is still Economical . For eg Some Areas still have Caution are Lake City, BAhria Orchard Sepecially Orchard J block. You may also make your own market research and share with us .
I agree with ihsan khan saab on this one. I had a similar concern a few weeks ago regarding this matter, however, has anyone realised that since pkr has devalued day by day, the price of cost of living has risen dramatically? price on food and fuel has gone so expensive since eid. You can never say never, so unsure but maybe a replay of 2008/2009 of bubble bursting soon but not yet maybe in 2-3 years, for now it appears to be ok (I think anyway) things do look uncertain…
I think prices might show some slow down in those areas where they have risen very rapidly. However, the rate of price increase might gain in some other areas due to various factors. So I don’t think there is going to be a bubble burst, atleast not anytime soon, but a selective slowdown in some areas cannot be ruled out.
I don't see any drop in prices because of devaluation of PKR. Even if prices drops to some extent, the files and non developed areas prices will drop, the developed plots prices will not drop, they will be stable. Let's See what comes next.
I do not think prices are going to drop in near future because Pakistani people do not have any other investment opportunities. Bank's profits are low, rupee de-valuation, power shortage, increase in energy prices make it difficult to run business. So, mostly people prefer to invest in property rather keeping the cash in bank. One more point; some people earned huge amount as black money during last few years. They are investing in property to make their money white. Population is also increasing so we need more homes ever year to accomodate the people. Urbanization is another serious reason behind it. This is just my view, may be i am wrong.
Good points irfan saab, however, my concern is that property pricing is going high day by day, and people will be unable to afford it. Therefore, if people are unable to sell there property then they would need to reduce to a point where it would. This would cause devaluation and prices will decline. This is my only worry!-as this could cause the bubble to burst!
Sheikh sb; it wont be the case in near future. The reason behind this is For example one kanal plot; You might have noticed that plot prices increase sharply once it is below 70-lacs. Once it cross 100-lacs limit then normally plot moves in the hand of end user who wants to build home for himself. The end user doesnt want to sell the plot further even if its price is increasing or not with the passage of time. After reaching at certain levels, plot prices become slow in increasing its price further. The investors prefer to move towards other new under developed societies having less price levels. Investers play the same game with new societies and once plot price reach at certain level then investers move towards another society. In last six months, you might have noticed that cheaper plots prices increased two times. For example, if one plot was available at 25-lacs, now that plot would be available at 50- lacs that means 100% price increase. But you wont see any plot having worth 2-crore six months ago and now its selling for 4-crores.
Undoubtedly, many factors are involved which decides the saturation price of any plot. For example; One kanal plot in one society at 60-lacs looks expensive but in other society everybody happily buy one kanal plot at one crore. So, price depends on location, builder reputation, develoment standards, transperancy in legal matters, investment security etc. Our population growth is high, rich people from villages are shifting in cities for the better education of their children, housing is basic necessaty so overseas pakistanis are continuously buying plots and build home for their family preferably in big cities, lot of black money in Pakistan etc. These factors wont allow the property prices to come down. It can sustain for one year but again it will start increasing sharply after one year. Chances of decline are very limited. Rest Allah Almighty knows the best. I hope i explain what i want to say.
Sheikh sb I think you may be looking at the logic in reverse...Prices are rising because there ARE buyers in the market who are willing to pay higher prices, otherwise, prices cannot rise even today. When prices will rise beyond the reach of buyers in some area, they will start buying in other cheaper areas and there prices will then start rising and the cycle continues. Even if investors take a break in the future, which I am sure they will, prices might stagnate or even fall somewhat for some time, but even then they will be much more than where they are today!
Incase there are any doubts about fresh inflows into real estate, just check out whats happening in the stock market (its crashing) and the forex market, even today. All indicators are pointing towards an impending surge in real estate prices. So I think you dont need to be worried at this point in time about a "bubble burst".
Very nice and interactive discussion about current situation. Yes, prices are going up rapidly espeically in last six month and it will continue to increase in some area with slow pace and other areas with fast. As it all driven from increasing demand from people coming from Karachi and Queta and few overseas settling in big cities instead of gong back to their native villages. Today situation in Karachi and Quetta or Peshawar improvees, you will notice a significant impact on demand. And other main reason for such hype is devaluation of your PK Rupees just see where dollar stand 2 years back and now.