Islamabad real estate business attracting NWFP investors

[LRE]

Islamabad real estate business attracting NWFP investors
SOHAIL SARFRAZ & TAHIR AMIN
ISLAMABAD (September 13 2008): The investors and government officials from the NWFP province have started making huge investment in property business in the federal capital and adjacent areas in view of deteriorating law and order situation at border areas.

Information collected by Business Recorder confirmed on Friday that the investment in the real estate business by "Pukhtoons" in the federal capital has increased during the last few months. This investment could be termed as comparatively higher against the previous year, but this could not be declared as total diversion of investment from Peshawar and Swat to the federal capital.

In the federal capital, the investment in the property business starts from at least Rs 50 million in posh sectors. Contrary to this, very few potential investors from Peshawar and Swat have been observed, who actually made huge investments in Islamabad. On the other hand, families migrating from NWFP to Islamabad prefer small size houses in the secured areas.

Some of the leading real estate agents in the federal capital were of the view that the property rates in the NWFP have shown decrease of around 8-10 percent due to deteriorating law and order situation in the province. The investment made in federal capital is not limited to the investors or businessmen from Peshawar, but even some senior government officials of the NWFP have shown interest in purchasing property in the federal capital or adjacent areas.

They said that it is difficult to distinguish between the investors from the Afghanistan and NWFP, but the "Pukhtoons" have purchased property in the federal capital.

They said that the people of the NWFP have preferred medium term investment of Rs 30-40 lakh for purchasing small houses at the Ternol area near the federal capital. This kind of investment is visible at the back of Ternol area where houses have been purchased by "Pukhtoons" at a cost of between Rs 30-40 lakhs. However, this increase in investment cannot be termed as an alarming situation in the capital.

Property dealers opined that the investment from NWFP has not resulted in any visible price increase of plots in the federal capital, as the price of the plots has remained stagnant during the recent past. The prices in the federal capital could be termed as stable and there is no panic in the market.

Quoting different prices of plots in Islamabad, real estate dealers said that presently price of one Kanal house in F-Sector Series is between Rs 40-50 million. Similarly, prices in G-series houses are around Rs 1-2 lakh per square yard.

Other property dealers said that the security conditions are going worse day by day in NWFP which have compelled the people to search a shelter and safe place to invest and to be settled there. The safety and facilities in Islamabad are the major attraction for the investors from the NWFP.

During the last few months, a large number of investors from Peshawar, Swat and Buner have made their way to Islamabad. Their main concern is about security. They claim that they have neither security for life nor to their properties.

These investors do not invest in already developed highly expensive sectors like E-7 but in the less developed sectors like G-13, G-14 and I-15. Some of them buy property to construct house for their own use. However, others were engaged in selling of new houses.

However, such kind of investors have not affected the market too much and prices in Islamabad are comparatively stable, but it is reality that these investors have shattered the local market of Peshawar where prices have fallen down by 8 to 10 percent.

Sources said that the Sarhad Chamber of Commerce and Industry (SCCI) had repeatedly complained that the increasing activities of Taliban on the outskirts of Peshawar are rapidly becoming a threat to business community in this provincial metropolis and businessmen have warned of shifting their enterprises to other provinces. The prevailing situation had compelled majority of industrialists to shift their industries to other safe provinces.

Copyright Business Recorder, 2008