Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Real estate trends: A Recap Of 2013
02-07-2014, 07:36 PM (This post was last modified: 02-07-2014 07:42 PM by Salman.)
Post: #1
Real estate trends: A Recap Of 2013
For anyone who is out in the market to buy a piece of residential land for investment purposes, let us start off by saying this: we feel your pain.

The dubiety shrouding Pakistan’s real estate landscape is after all the stuff which legends are made of. Ponzi schemes, realtor frauds and unauthorized housing societies abound in the backdrop of genuine demand and flimsy regulations - all making for an environment that breeds confusion and deters investment.

BR Research, however, has recently been on something of a ‘real estate bender’ – largely in a bid to demystify and collect the sparsely available information for potential investors. To this end, we consulted some of the sector’s leading movers and shakers - for data support where possible and expert opinion where applicable.

And the verdict is unanimous: Residential real estate prices in all three major cities are on the rise. Showing different degrees of upsurge - from flat to double digit year-on-year spikes - prices remained on the up, more so in the second quarter then the first, when investment was in a pre-election lull.

Following the elections, the first big jump in prices came at the hands of the Finance Bill 2013, which announced the government’s plans to tax moveable assets. In fact, prices of residential land touched their highest levels across the nation following the announcement in late June. Investors’ interest in real estate also peaked during the same time due to FBR’s plans to access bank accounts to collar tax avoiders.

Prices in Punjab during 2HCY13 were also influenced by strong underlying demand and the push from the newly instated government’s steps to digitize land records in the province.

The hubs of growth in all three cities have been the same: housing societies where land rights are secure and real estate transactions are relatively transparent. “Serious investors are left with two options: they can either shoot arrows in the dark or invest in one of the ‘safe’ localities” agreed Zeeshan Khan, co-founder of Zameen.com, which is also our primary source of statistical information.

Biggest exceptions to that trend, however, have been the localities surrounding Lahore’s Ring Road. Experts say that with the completion of the northern loop of the road, prices of land in adjoining societies such as HBFC, Sui Gas and State Life have already more than doubled over the past year and will continue to rise.

In fact, not only does the Ring Road offer a quick connection between the city’s economic hubs, the realtors also believe that it has had an overall positive effect on the city’s real estate, having strengthened prices of several of DHA’s adjoining phases including 5, 6, 7 and to some extent 8 as well.

The rest of Lahore’s market meanwhile is believed to be going through a corrective phase. Prices in Islamabad on the other hand have seen the biggest capital gains of all, with prices for 1 Kanal plots in Bahria Town touching the same level as those in DHA Lahore.

Industry sources argue that inter-city migrations from Karachi and KPK to the twin cities are responsible for these increases. In comparison, CDA controlled areas including F-11 and G-11 have shown comparatively smaller price accretion over the last year, due to lower availability of plots and a generally slower market.

Karachi on the other hand, remained a city with a lot of pent-up demand. Supported by strong population growth and an intra-city migration trends, the city’s residential sector saw a healthy growth in CY13.

“Restricted purchasing power and the exorbitantly high prices of land in the super expensive southern reaches of the city has residents trapped, leaving them with limited options,” Rashid Chohan of Chohan Estates told BR Research. Nonetheless, a lot of people are moving away from violence struck areas and the general lack of supply has helped buttress rates of property and land in areas like Gulshan-e-Iqbal this year.

Note: Beginning today these columns would carry a review of Pakistan’s key real estate markets once every week. Your suggestions and feedback are welcome. ================================================== National price trend for 1 Kanal residential plots ==================================================
Rs (mn) 1HCY13 2HCY13 chg ==================================================
DHA Lhr 11 14 24%
DHA Khi 21 23 23%
Bahria Lhr 8 10 24%
Bahria Isb 9 17 31%
Sector G-11/F-11 Isb 35 42 20%
Gulshan-e-Iqbal Khi 13 17 30%
Gulistan-e-Jauhar Khi 8 9 10%
Lahore Cantt 26 27 3%
==================================================
http://www.brecorder.com/br-research/44:...p-of-cy13/
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  10,000 New Property Developers Bring into the Pakistani Real Estate Market LRE-Azan 0 182 09-14-2018 03:19 PM
Last Post: LRE-Azan
  Tax Reforms 2018 Complete Details - Real Estate market LRE-Azan 0 122 09-05-2018 01:52 PM
Last Post: LRE-Azan
  Booming real estate sector contributes just Rs23 billion in taxes LRE-Azan 0 161 08-16-2018 02:12 PM
Last Post: LRE-Azan
  Key reforms for Pakistan’s real estate sector hit a snag LRE-Azan 0 128 07-18-2018 04:22 PM
Last Post: LRE-Azan
  Possibility of Booming Pakistan Real Estate Business Salman 0 3,046 03-27-2014 07:50 PM
Last Post: Salman
  Better security, more investment in development to help real estate Salman 0 2,449 03-17-2014 01:32 PM
Last Post: Salman
  Real estate market hits growth trail again Salman 0 2,729 02-25-2014 01:15 PM
Last Post: Salman
  State Bank Remove Loan Limit for Real Estate Sector Salman 0 3,302 01-07-2014 02:29 PM
Last Post: Salman
  LDA sealed 570 properties in 2013 Salman 0 2,429 01-02-2014 01:25 PM
Last Post: Salman
  Property prices rise by 33.1pc in 2013 CMY 0 3,509 12-28-2013 08:48 AM
Last Post: CMY
  CBR Town Phase-2 Islamabad Balloting on December 21, 2013 Salman 0 7,316 12-19-2013 03:11 PM
Last Post: Salman
  Federal Govt Decided to Establish Real Estate Regulatory Authority Salman 0 4,265 12-17-2013 01:43 PM
Last Post: Salman
  National Housing Policy 2013 Coming Soon for low-cost houses Salman 0 5,312 11-28-2013 01:31 PM
Last Post: Salman
  Real estate market in Lahore undergoes correction Salman 0 8,714 11-04-2013 04:44 PM
Last Post: Salman
  With real estate boom, developers now focus on Raiwind Road Salman 0 5,004 09-30-2013 03:43 PM
Last Post: Salman
  LDA To Auction Commercial Plots On 10th October 2013 Salman 0 6,482 09-27-2013 04:03 PM
Last Post: Salman
  LDA to Auction 50 commercial plots on 24th September 2013 Salman 0 7,909 09-04-2013 08:37 PM
Last Post: Salman
  Development projects: LDA budget for 2013-14 approved Salman 0 5,762 07-30-2013 02:24 PM
Last Post: Salman
  CDA approves Rs 33.984bn budget for 2013-14 Salman 0 4,923 06-29-2013 04:15 PM
Last Post: Salman
  DHA Lahore Phase 7 Development Update Pictures May 2013 Salman 0 73,745 05-22-2013 01:39 PM
Last Post: Salman

Forum Jump:


User(s) browsing this thread: 1 Guest(s)