Agricultural Land, Bahria Town, Clifton, commercial property, construction costs, Defence, developing residential areas, DHA, foreign investment, gated residential communities, Gulberg, home loans, Interest rates, investment, Islamabad/Rawalpindi, Jinnah Super, Karachi, Lahore, newly constructed houses, older residential areas, Pakistan’s real estate market, Punjab, purchase prices, purpose-built office buildings, real estate prices, Rental rates, residential property, state-of-the-art facilities, Uzma Nawaz
Three months into 2013, and experts are a little unsure of how the year will pan out with regard to Pakistan’s real estate market given the prevailing law and order situation. However, they are certain that real estate prices will increase, as will the demand for property.
Here is what the experts expect in 2013:
- Residential property prices will rise by 20 to 40%; rental rates will increase by 10 to 20%.
- The availability of newly constructed houses will increase by 10%.
- The demand for affordable, gated residential communities will increase by 20%.
- Newly developed (or developing) residential areas which will attract the most investment include Phase I and Sector F, DHA (Islamabad), Phase VIII, DHA (Karachi) and Phase VIII, DHA (Lahore).
- Older residential areas which will continue to attract the most investment include: Phases III and IV, Bahria Town (Islamabad); Clifton and Defence (Karachi); Bahria Town and DHA (Lahore).
- Interest rates on home loans will remain the same as last year and vary between 14.3 and 14.8%.
- Commercial property prices will increase by 10 to 15%; rental rates will increase by 10 to 20%.
- The demand for purpose-built office buildings (equipped with state-of-the-art facilities and security) will increase by 20 to 40%.
- Key commercial areas which will attract investment include Jinnah Super (Islamabad), and those in Clifton (Karachi) and Gulberg (Lahore).
- Agricultural land
- Investment in agricultural land in the Punjab will increase by 10 to 15%; purchase prices will increase by five to 15%.
Other projected statistics include:
- Foreign investment will decrease by five to seven percent.
- Construction costs will increase by 20%.
– Uzma Nawaz
Information provided by Imran Baig, Project Manager, DHA (Islamabad), Shafi Jakvani, CEO, Citi Associates (Karachi) and EZ Estate (Lahore).
First published in the Real Estate Section of The DAWN National Weekend Advertiser on March 17, 2013.