Real estate market shows modest growth

LAHORE:

The real estate market of all major cities of Pakistan showed modest growth in February, with hope that prices would strengthen even as elections approach later this year.

Last year’s bearish trends still affected buying, as growth was moderate, and no society stood out drastically, revealed a report of an online property portal.

“However, the moderate growth and buying trends indicated that investors are returning to the market after last year’s calmness,” stated Zameen.com. All four major cities – Lahore, Islamabad, Karachi, and Gujranwala – experienced moderate changes and stability. Projects by big-name developers performed well in all four cities.

Lahore

According to the data, in Lahore, DHA Phases I-VI showcased stability for 1-kanal plots with a rise of 0.63%, and a moderate growth of 1.79% in 10-marla plots. This can be attributed to the rising number of homes being constructed in Phases V and VI by genuine buyers.

DHA Phases VII-IX showcased similar trends, with 1-kanal plots going up by 0.56%, and 10-marla plots going up by 1.25%. A significant amount of this increase is due to development work being undertaken in Phase IX.

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Karachi

DHA Karachi remained stable with rises of 0.67% for 250 square yard plots, and 0.16% for 500 sq yard plots. This was because no major developments were announced there, and genuine buyers ruled the market.

On the other hand, DHA City Karachi experienced moderate growth for both 250 sq yard and 500 sq yard options. The former went up by 3.28%, while the latter increased by 3.09%. In the past few months, rates had been dropping, leading to an ideal situation for investors to come in and generate activity in the locality.

Bahria Town Karachi experienced downward trends, with 250 sq yard plots dropping by a moderate 1.81%, and rates of 500 sq yard plots going down by a stable 0.23%.

Islamabad

Plots in Islamabad’s Sector F-11 showcased moderate growth of 1.60% and 1.53% for both 10-marla and 1-kanal options, respectively. This is due to the fact that it is only 20 minutes away from the Islamabad International Airport, which has generated activity in the area.

DHA Islamabad, on the other hand, remained stable, with 10-marla plots going up by 0.20%, and 1-kanal plots appreciating by 0.23%. Its location away from the airport means that it does not get the attention localities around the airport are receiving. 

Published in The Express Tribune, April 8^th, 2018.

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