The real estate market entered the 4th quarter easily, banking on the victory of numerous famous property markets. This followed a sustained rise in costs of real estate in major cities – Lahore, Islamabad and Karachi – in the 3rd quarter of the year 2015.
Even though the few projects of famous developers did face some impediments, this was not a main reason enough to raise the huge uncertainties, in accordance to a report issued by zameen.com, an online property portal.
In accordance to a report, Karachi’s realty market performed outstandingly. There was merely one exception – Bahria Town Karachi – which issued unfavorable figures as cost of 250 sq. yard plot fell 5.39 percent. Likewise, a decrease of 3.85 percent was recorded in 500 sq. yard plots in the 3rd quarter.
On the other hand, DHA Karachi and DHA City Karachi did not disappoint and provided investors motivating returns. DHA Karachi monitored the sharp record of 8.27 percent cost gain for 500 sq. yard plots and an even sharper increase of 12.35 percent for 250 sq. yard plots.
DHA City Karachi registered rises of 16.60 percent and 11.65 percent in the costs of 2 categories respectively.
Once again, DHA Karachi emerged as the most expensive city locality, where the net sale price of a 500 sq. yard house stood at Rs. 60 million and that of a 250 sq. yard house was Rs. 41 million.
The real estate market of Islamabad indicated a mixed overview. Sector E-11 registered cost increases of 3.33 percent and 1.69 percent and F-11 monitored the rises of 2.22 percent and 3.73 percent for 1-kanal and 10-marhla segments respectively.
Bahria Town experienced a sharp 5.66 percent increase for 1-kanal area where as the cost of 10-marhla area sustained to be stable, with a negligible fall of 0.76 percent. Activity in DHA Islamabad looked listless this time period. The 1-Kanal segment analyzed a 1.57 percent fall, while 10-marhla areas monitored a record of 4.30 percent drop.
The position of DHA Valley and the intended progress of Dadocha dam on its area remained controversial and problematic. It is hard to say, investors’ confidence has taken a strike.
Although, DHA Islamabad has currently declared plans to allot alternative areas/plots to those suffered by the DHA Valley issues, so thing could initiate to look better soon.
Sector F-11 sustained to be one of the expensive localities predictably, where the net price of 1-kanal home stood around Rs. 69 Million and that of a 10-marhla home was around Rs. 36 million.
Lahore’s property market analyzed a humble upward movement. However, many major areas sustained to excite investors by registering better levels of progress, DHA Lahore remained stable in 1-kanal segment with costs dropping a negligible 0.69 percent.
Although, in the 10-marhla area, a sharp fall of 6.61 percent was registered in the 3rd quarter stated the report.
There could be several reasons behind this, involving the application of withholding tax on banking transactions, an increase in taxes and the income source revelation notices sent to investors. Most importantly, the take-off of DHA projects in Multan, Bahawalpur and Peshawar may have moved investor concentration.
Comparatively, LDA Avenue – I and Bahria Town performed outstanding instead of numerous pending litigations. Bahria Town reflected a sharp cost increase of 14.57 percent for 1-kanal areas and a 5.32 percent for 10-marhla plots. LDA Avenue – I issued a 5.04 percent increase in the 1-kanal segment and 7.63 percent increase in the ten-marhla category.