Lahore: Home to over 12.6 million people, Lahore has seen massive horizontal expansions during the past three decades to meet the increasing demand for housing units. Despite the addition of countless housing schemes, there still exists a significant shortfall in affordable residential units feasible for buyers aiming to live a hassle-free life – not to mention that the occupancy rate in over 80% of these housing schemes located at the city’s limits remains quite low.
This trend would have continued for years to come if the government had not stepped up with a more practical approach on fixing several industry-related issues by directing the construction trends. The most commendable step taken in this regard was to encourage vertical development by reducing taxes, slashing construction material rates and giving investors an immunity from declaring their source of income for the capital invested in these projects – registered with the Federal Board of Revenue (FBR).
While all of this was destined to cause a paradigm shift in the real estate buying trends, Zameen.com has noticed that the demand for apartment units started to increase several years ago. As per the data maintained by the portal, search volume for apartments in Lahore increased by 118% between September 2018 and September 2020, in comparison to a 100% rise in demand for houses during the same period.
This rise in demand has also left an impact on prices of flats in the city, where the average price of a 3-bedroom apartment rose up by 27%, while the 5-marla houses (featuring 3 bedrooms) increased by a mere 10%. Consequently, the demand and the value of land for old houses in various areas and neighbourhoods that are suitable for construction of apartment projects is increasing constantly.
Gulberg is one such examples, where many old houses are being demolished to replace them with high-rise buildings featuring a variety of apartment units. The limited number of empty plots available here are also selling like hot cakes as developers and real estate builders are aware of the neighbourhood’s importance in the real estate sector.
Being aware of the strategic importance of this area, Zameen Developments launched its exclusive apartment project ‘Zameen Aurum’ in Gulberg III and received an overwhelming response from buyers and investors who can foresee the market’s future trends.
For more such insights on the real estate market of Pakistan, stay tuned to Zameen News.