Property boom in Islamabad, where is the market headed to? - Zameen News

Property boom in Islamabad, where is the market headed to?

June 3, 2013 • news

boomRecently the property in Islamabad has seen an un-expected surge. Experts were forecasting a surge later this year but few months before elections an unexpected surge raised the alarm bells for few, opportunities for others and for some unfortunate late-movers hardened the buy option with already skyrocketing property market. Especially the sectors like D-12 and E-12, which had reflected their high prices on to other CDA sectors and private sectors in close vicinity of Islamabad, performed phenomenally well.

Many questions are been asked as to what led to such a quick rise in the property market? If the economy is not doing well, where is all this cash inflow coming from? Is this a temporary surge or will these prices remain at a level or rise further? Are these prices a symbol of another boom in property market? Why wasn’t such a surge forecasted especially in CDA sectors?

Analyzing all the facts and figures of time before elections and gradually moving forward till the new government takes office, a conclusion was reached answering all these questions. What actually caused the surge in Islamabad property market was the inflow of money from different sectors of life to the capital’s realty market, which is considered a safe haven by many in Pakistan. It has been witnessed that the major cash inflow was from KPK, Waziristan and Swat where insecurity prevails because of absence of law and order. The same happened in Karachi, where many businessmen moved their families to safe vicinity of Islamabad and Lahore.

At the same time when bank interest rates are low with ailing economy and lack of business investment opportunities, one is for sure to see all the investment moving from all sources and means to the real-estate market. Islamabad (CDA) property has turned out to be the savior for all the privately owned residential housing schemes including Bahria, DHA, Multigardens, Naval Anchorage, PWD and AJKHS.

However, investors and buyers are advised to invest in Islamabad with care and caution as the property prices are already on the high especially in sector E-12 and D-12 influencing rest of the property market. It is also expected that Islamabad realty market will see a dip as soon as the new government takes office because the government’s main priority would be to bring much wanted investment in the industrial sector in order to uplift the country’s economy.