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The first month of 2019 apparently followed the trends from last year in the real estate market of Pakistan. The figures we get for the month of January was almost similar to that of December’s 2018, which means market carried on with positive vibes. The market remained stable and rates were unchanged with what they were in the second half of 2018. Real estate prices across the country saw stable progress. Particularly in the three major cities of the country, the market showed a little upwards trend except for Karachi property Market. The case for the mega city was quite different as once again the city witnessed a decline in market trends.
Talking about Karachi’s house index, the index progressed in January amid a relatively stable state of the market. Experts believe that if such progress continues to February also, it will be an exciting development in the real estate industry of Karachi. The city’s property market is showing signs of revival as the house price index saw the increment of 1.31% reaching 2.7 points. The index point secured a total of 208.73 index points by the end of January.
On the other hand, The plot price index of Karachi experienced a dip of 1.41%. Despite the fact that the city’s market saw a significant increase of 4.26% in the recent past, the dip is no surprise of experts considering the state of the rest of the market. However, the market of Karachi is going through revival activity. Therefore, the next month will be very crucial in determining which way the things may turn. The index for plots essentially stood at 230.19 index points which means a fall of 3.3 points.
let’s dig down deeper to assess the area wise performance of different localities in Karachi.
Starting with the Bahria Town Karachi, at the beginning of 2019, the things were settling up for BTK. There were improvements in their legal issues as they were moving towards sort out. This progress resulted in the jump of a few lacs in the price index of the project. The demand for the 125-yard plots was also increased. But, all of a sudden, as the legal hearings moved on, the market once again fell down.
On the other hand, there is another panic hit the market to harm Bahria’s reputation, and that is the circulating rumors that are suggesting many blocks of Bahria Town Karachi are on occupied land gained by Bahria Town illegally. An unauthentic map is also making headlines on social media that features the line of demarcation separating the alleged legal and illegal territories of Bahria Town.
So, we have advice for those allottees who falls in affected areas. if Bahria Town makes an offer to shift or exchange your property with property located on any other block, do not miss that opportunity. Avail this offer (if any) as soon as possible.
Overall, we can say as soon as Bahria will sort out its legal issues, the prices will going to boom. So if you’re a risk-taking investor, you can invest in old precincts of Bahria Town on recent prices. For this purpose, precinct 1 till precinct 33 is recommended.
Gulshan e Maymar
Gulshan e Maymar performed very well in the month of January. Both the commercial and residential plots performed equally well in Gulshan e Maymar. The prices in the area also increased amid the progress of the market. The 120-yard experienced the jump of around 5 to 6 lacs while 240-yard property saw a jump of around 8 lacs.
On the other hand, after the list issued by the Anti-corruption Establishment has left the future of around 170 societies doubtful, Gulshan e Maymar has very bright investment opportunities. If you’re a builder or consultant who is looking forward to constructing a portion for selling purpose, Maymar is one of the best options for you. If you’re a short term investor, we’ll recommend you the residential sector of Gulshan-e-Maymar.
Scheme 33 was progressing with the presence of genuine buyers. The construction works were in the full swings in reputable societies. The overall progress was quite satisfactory until the market of Scheme 33 got hit by the list issued by the Anti-corruption Establishment. The list features various societies from Scheme 33. This development has raised a question mark on investors’ future in Scheme 33. Since then, investors are a little hesitant in opting Scheme 33. But still, if you’re willing to work in Scheme 33, we will recommend you to go with proper market research. Choose credible, uncontroversial and reputable housing societies particularly where leasing facility is available. Even after the shock by Anti-corruption Establishment, we can say that the market is stable and investors can consider Scheme 33 with keeping the above factors in mind.
DHA city was performing well at the beginning. The prices were booming. The market had experienced a jump of around 4 to 6 lacs. But all of sudden, the SRO notification issued by the FRR has impacted DHA’s market negatively. According to the SRO, the government has decided to impose the advance tax on 500-yard properties of DHA. As an aftermath, the market slowed down for DHA city. Even after such disturbance in the flow, the market was in the form of continuity with the presence of demand for 200 and 300 yards.
Comprehensively, the DHA City market is still stable. The transfer ratio on daily basis for the project ranges from 12 to 15.
Interestingly, when we compared the current situation with the peak of 2016, we’ve found that currently,.there is a decline of around 45 to 50% in the prices across all the sectors, as compared to that of in 2016. So if you’re looking to invest in DHA City, we must say its a good option right now.
Karachi Property Market Conclusion
The market was overall stable. There are still a lot of opportunities for investors in the current market. The market also expected to get more positivity after the recent developments such as the arrival of Saudi crown prince with $20 billion investment. Foreign investment will further strengthen the market. Therefore, we can say that currently, the real estate market of Karachi has a lot of potentials.