Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Floods take their toll on Lahore’s real estate market
08-28-2010, 11:46 AM
Post: #1
Floods take their toll on Lahore’s real estate market
* Prices of property had begun to recover from five-year slump only
for investors to be scared off by floods

By Shabbir Sarwar

LAHORE: Following five years of a slump, the city’s real estate business and property prices had finally recovered by up to 10 percent, however the flood factor has once against reduced prices by 5 percent as investors are showing reluctance to pour in their money, market analysts told Daily Times on Thursday.

The real estate business saw an unprecedented boom from 2001 to April 2005 and during this period, 100 to 1,000 percent increases in prices of property (both plots and houses) had been witnessed. Later, a severe slump was witnessed; the business however survived somehow until 2007 as scattered investors remained in the market. However, from 2007 to 2010 there has been no investment in the markets and the rates fell by 50 to 100 percent depending upon the areas and location of the plots and constructed houses.

Defense Housing Authority (DHA) Estate Agents Association Information Secretary Hazi Zahid bin Sadiq said that 9/11 triggered a boom in Pakistan’s property business. “Pakistanis settled in the US felt insecure and they transferred their money to Pakistan and preferred to invest in real estate, which meant that prices increased up to 400 times. A plot with a value of Rs 0.4 million was suddenly valued at Rs 5 million,” he said, adding that later the ratio of tax and transfer fee was increased by up to five times.

Zahid said that during 2005-06, the prices of developed plots were decreased by 30 percent and undeveloped plots by 75 percent. “Private housing societies, ghost plots and the file mafia caused a further slump in property prices,” Zahid said, adding that in DHA, during the last few month, prices had started recovering and in phases 1, 2, 3, 4 and 5 the price increased by 5 to 8 percent, while in phase 7, prices increased by 20 percent and in phase 6 by 25 percent.

Farooq Jamal, the CEO of Estate Homes, while giving statistics, said that in DHA, phases 6, 7 and 8 were the worst hit during the slum period, as a one-kanal plot’s value decreased from Rs 8 million to Rs 4 million, while in phase 9 and 10, the value of files decreased from Rs 4.5 million to 1.5 million. “Before the floods, the prices started recovering by 8 to 10 percent, but now investors are again reluctant,” Farooq said.

About the current price of a one-kanal plot in DHA, Farooq said that in phase 1 and 2, prices stood between the range of Rs 8 to 12 million depending on the location. “In phase 3, Rs 8.5 to Rs 1.3 million, in phase 4 Rs 7.5 million to Rs 12 million, in phase 5 Rs 7 million to Rs 12 million, in phase 6 Rs 4.5 million to Rs 8 million, in phase 7 Rs 3 million to Rs 5 million, in phase 8 Rs 4 million to Rs 6.5 million and in phases 9 and 10 the price of files is Rs 1.5 million,” he said.
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
  Market Pulse & DHA Files Rates By Lahore Real Estate September 22, 2023 LRE-Azan 0 639 09-22-2023 05:54 PM
Last Post: LRE-Azan
  Market Pulse & DHA Files Rates By Lahore Real Estate April 03, 2023 LRE-Azan 0 912 04-03-2023 06:20 PM
Last Post: LRE-Azan
  Lahore Real Estate Ranked Top One and Won 1st Prize for Social Media Advertisement in LRE-Azan 0 1,292 06-01-2022 07:45 PM
Last Post: LRE-Azan
  Lahore: Ring Road Authority Increased Toll Tax from Rs. 5 to 50 LRE-Azan 0 1,451 12-23-2021 07:34 PM
Last Post: LRE-Azan
  10,000 New Property Developers Bring into the Pakistani Real Estate Market LRE-Azan 0 4,713 09-14-2018 03:19 PM
Last Post: LRE-Azan
  Tax Reforms 2018 Complete Details - Real Estate market LRE-Azan 0 4,019 09-05-2018 01:52 PM
Last Post: LRE-Azan
  Lahore Property Prices Update By Lahore Real Estate ® April 30, 2015 Salman 0 6,783 04-30-2015 05:29 PM
Last Post: Salman
  Lahore Property Prices Update By Lahore Real Estate ® April 27, 2015 Salman 0 6,034 04-27-2015 01:45 PM
Last Post: Salman
  Lahore Property Prices Update By Lahore Real Estate ® April 21, 2015 Salman 0 5,720 04-21-2015 03:16 PM
Last Post: Salman
  Lahore Property Prices Update By Lahore Real Estate ® April 14, 2015 Salman 0 5,865 04-14-2015 03:11 PM
Last Post: Salman
  Lahore Property Prices Update By Lahore Real Estate ® April 08, 2015 Salman 0 5,747 04-09-2015 04:22 PM
Last Post: Salman
  Real estate market hits growth trail again Salman 0 5,273 02-25-2014 01:15 PM
Last Post: Salman
  LDA City Lahore Location Map And Detailed Information By Lahore Real Estate Salman 0 7,973 01-18-2014 05:35 PM
Last Post: Salman
  Bahria Town Lahore Karachi Files Rates Update From Lahore Real Estate Jan 16,2014 Salman 0 9,477 01-17-2014 12:31 AM
Last Post: Salman
  Legal battles take heavy toll on CDA working Salman 0 5,714 12-17-2013 01:42 PM
Last Post: Salman
  Real estate market in Lahore undergoes correction Salman 0 11,096 11-04-2013 04:44 PM
Last Post: Salman
  Lahore : Gowaha residents in trouble as rain floods Rohi Nullah Salman 0 6,074 06-19-2013 12:18 PM
Last Post: Salman
  Lahore’s real estate on the rebound Salman 0 5,992 04-15-2013 01:26 PM
Last Post: Salman
  CDA to award contract of toll plaza on IJP Road Salman 0 4,696 11-28-2012 01:14 PM
Last Post: Salman
  CDA to award contract of toll plaza on IJP Road Salman 0 4,753 11-28-2012 01:05 PM
Last Post: Salman

Forum Jump:


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