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Land prices in Islamabad soar by 500% in five yearsPublished: Tuesday, 10 May, 2005, 12:01 PM Doha Time

ISLAMABAD: Rates of real estate in different sectors of the Pakistan capital have increased by over 500% in the last five years, diminishing hopes of the middle class to own property despite the government’s assurances about resolving housing problems.

According to owners and property dealers, the rates increased when overseas Pakistanis invested their assets in real estate in their homeland after the 9/11.

The sudden increase in the demand triggered an unprecedented hike in property prices.

Similarly, another reason behind the increase was development work in different sectors of Islamabad.

In 1999, a 50x90feet plot in Sector F-10 was sold at Rs6mn, while now the same values at Rs20.5mn.

Likewise, 180x115feet plot is now available at Rs40mn against the previous rate of Rs10.25mn.

In 2000, owners of 50x90feet plots in Sector F-11 demanded Rs1.3mn from prospective buyers but now the prices have jumped to Rs10.35mn.

A plot of 180x115feet was sold at Rs10.25mn five years ago. However, now one would have to invest Rs40mn to own it. In Sector E-11, the recent prices of 50x90feet and 35x65feet plots are Rs10.35mn and Rs8mn, respectively.

In Sector G-11, a 20x40feet plot is being sold at Rs4.5mn, which was available at Rs0.5mn five years ago.

For a 25x40feet plot, owners are demanding Rs6mn while its rate was only Rs1mn five years ago.

Similarly, in the year 2000, 25x50feet, 30x60feet, 40x80feet and 50x90feet plots were sold at Rs2.5mn, Rs2.8mn, Rs3.2mn and Rs4mn, respectively. However, the latest prices are Rs5.2mn, Rs8.3mn, Rs10.35mn and Rs20.2mn, respectively. – Internews

Saeed Ahmed

RAWALPINDI: The Rawalpindi Development Authority (RDA), in accordance with the decision of the Ministry of Defence, has imposed a ban on all housing schemes and societies based near the new Islamabad airport.

Talking to ‘The News’ here Friday, the RDA spokesman said that the owners of the banned societies have been directed to get clearance from the Ministry of Defence and submit approval papers to the RDA. Till that period, the RDA has imposed a ban on housing societies having schemes close to the new airport. These societies include: Top City One, Mumtaz City, OGDC Employees Cooperative Society, University Town, Tarnol Housing Scheme, Pakistan Employees Cooperative Housing Society in addition to others.

The spokesman said that the cases of Khudadad City and Pakistan Overseas Housing Scheme were under the process of approval.

Meanwhile, the Rawalpindi Development Authority has declared a housing scheme — Al-Haram City — illegal and directed the public not to purchase plots from this society. The spokesman, referring to the location shown by the Al-Haram City in different newspaper advertisements, said that it falls in the RDA’s jurisdiction. "The RDA has not approved the housing society. People should not purchase plots in this scheme until its owners get town planning approved from the RDA."

Similarly, Lawyers Colony, Eastridge Housing Scheme, Mozah Kotha Kalan, were not approved by the RDA. But their owners have applied to the RDA for getting approval of their schemes, the spokesman said.

The RDA has given approval to Gulrez Housing Scheme with regard to building maps under operational plan. The public should get clearance from Gulrez Housing Scheme before purchasing plots and getting approved building maps.

The spokesman said that the RDA has approved the town planning of 21 housing societies. These include: Revenue Employees Cooperative Housing Scheme, Mozah Morgah; Rabia Bungalows, Mozah Kotha Kalan; Garden Villas, Mozah Daigal; Fazaya, Mozah Gangal; Kehkashan Town, Mozah Shahpur; Army Officers Housing Scheme, Mozah Morgah; Doctors Town, Mozah Lohi Bheer; Kohsar View, Mozah Lakhu; Allama Iqbal Town, Bajnial; Judicial Colony, Mozah Gangal; Bahria Town Scheme 1 & II, Mozah Kotha Kalan; Safari Villas Sector B, C, D Mozah Kotha Kalan; OGDC Employees Cooperative Housing Scheme, Mozah Nasrullah Vahkla; Atomic Energy Commission Employees Cooperative Housing Scheme, Mozah Rawat; Municipal Corporation Sector A, B Housing Scheme, Rawat; Gulshanabad, Mozah Kalyal; Foreign Office Employees Cooperative Housing Scheme, Mozah Narhala Kawelian and Lakhu; and Pakistan Employees Cooperative Housing Society, Mozah Kharan and Mozah Ghurbal.

The RDA had, however, requested the owners of these schemes to transfer their land to the RDA. But the owners did not comply with the orders. They have been again directed to transfer the land under new Regulations of Private Housing Schemes 2005 by the Punjab Government. If again, the owners fail to implement the orders, the RDA would be in a position to take legal action, the spokesman added.

source: http://www.jang.com.pk/thenews/may2005-daily/14-05-2005/metro/i10.htm



can anyone confirm about this Al-Haram City, is it legal or not, coz my parents asking me to get info on it....... according this news clip it looks like illegal :(

my goodness.

I knew property prices are shooting but never realized they have gone up by so much now.
So what is likely to happen in the next 5 years ?? Another 500 % increase ?? :runaway:

Nice website.

Thanks for sharing.

Thanks for sharing.

DHA and Dubai firm launch housing venture

ISLAMABAD: The Defence Housing Authority in Islamabad and EMAAR Properties Dubai have signed a joint venture to develop residential, commercial, entertainment and sporting facilities.

The agreement-signing ceremony was held at the office of DHAI. Speaking on the occasion, Maj Gen Zakaud Din Malik, the DHAI vice president, said that the DHAI would emerge as a model for residential projects in Pakistan.

He said the quality of services and residential facilities provided in the DHAI had made it a symbol of lifestyle, cleanliness, calmness, tranquility and affluence. online

Which one is this ? Defense Housing Islamabad ?

Al Ghurair Group also bought land in DHAI to develop 19 highrises. This is going to be pretty cool!

Memon Group of Companies, one of the largest groups in Pakistan and IPB Eigenheim, a reputable German company have forged a partnership that will see the rise of another remarkable project In Dubai - the heart of the Middle East.
At the launch, held at the Emirates Towers Hotel, Memon Group unveiled its newest venture in Dubai, Champions Tower, its prime luxurious apartment building, located in Dubai Sports City.

Champions Tower, a 13-storey structure, will be strategically situated within the prestigious enclaves of the Dubai Sports City. Rising on a 31,484 sq. ft. of land area, the tower will offer a total of 125 apartments with the choice of a studio, one, two, and three bedroom apartments, each with its own magnificent views and fine architecture.

The developer, Memon Real Estate - Dubai, is a part of the $4-billion worth Memon Group of Companies that prides itself with an experience of over 28 years in real estate development across the world. The group also has a trading presence in 35 countries, apart from its IT and manufacturing interests. It has been financially stable since its inception, which is a result of its dedication to excellence.

Expecting no less than the best from its roster of competent professionals, Memon Group emphasizes the practice of integrity and teamwork among its people, while its values and performance attract clients to the firm and form the basis of their global reputation.

IPB Eigenheim is a German firm specializing in live and trade project planning. Headquartered in Frankfurt, it has a worldwide presence and has completed over 100 residential units within the last year.

Announcing the venture was Mr Abu Bakar Shaikhani, Founder and Chairman, Memon Group, said, 'This partnership is part of our vision of combining different cultures in order to create a development of excellence. Champions Tower aims to offer superior value and surely each home will be an asset for life. '

Memon Real Estate's Marketing Director Mr. Imad Badr added that, 'The launching of the Champions Tower could not have come at a better time than now, when real estate in Dubai is at its peak and provides onus to Memon's mission to drive itself into growing markets. We want to play a valuable part in the fastest growing economy in the Middle East.'

The Champions Tower, will boast of a large, elegant marble reception, swimming pools, spa, sauna and Jacuzzi, fully equipped state-of-the-art gymnasium, two-level basement parking, 24-hour security, cafeteria, indoor games room and high-speed elevators.

It will offer an unparalleled range of activities for the family by benefiting from the secure and gated community of Dubai Sports City that will feature a variety of schools, parks, mosques, sports, entertainment and recreation facilities. Within close distance will be an 18-hole golf course, a cricket stadium and academy, rugby, football and track & field stadium, hockey stadium, indoor stadium, jogging/bicycle tracks, boulevards, restaurants, cafes, malls, cinemas, retail outlets, medical centres and other services.

Centrally located, the project is just 15 minutes away from the Dubai International Airport, 10 minutes away from Mall of the Emirates, 5 minutes drive from the proposed Formula 1 circuit, and less than 5 minutes from Sheikh Zayed Road.

Also speaking at the press conference, Mr Ahmed Shikhani, Managing Director of Memon Real Estate (UAE) said, 'The Company values the practice of integrity, teamwork and the pursuit of excellence in everyday living. We are committed to continually evaluate the needs of our clients in applying the best practices, systems, and technology in our quality of work,' in citing what sets the Champions Tower apart.

You can also see the rendering on the link.

http://www.pakpositive.com/common/clicks/out.php?url=http%3A%2F%2Fwww.ameinfo.com%2F64961.html

Trust a Pakistani group to launch projects everywhere but Pakistan.

So thats how our foreign exchange floats away...

Memon Group has launched a project somewhere in Pakistan besides Dubai. Also, with launching the project in Dubai, they'd market the project, sell apartments, make profit, and bring it back to Pakistan, which in return would give a boost to our foreign exchange.

Its all about investing in international markets too. We see a lot of arab investors investing in Pakistan's Real Estate market, why ? because its at a boom stage, and they want to make money $$,, and take it back to where ever they come from.

Emaar aggressively expands retail business with AED 15 billion investments
Author: Property World Middle East Thursday, October 13, 2005 at 12:06
Rating:

Emaar Malls to build 100 shopping malls in MENA and Indian subcontinent
Emaar Properties PJSC, the world’s largest real estate company by market capitalization, announced plans to aggressively expand the retail sector with investments of over AED 15 billion to develop about 100 malls in the mega emerging markets of the Middle East, North Africa (MENA) and the Indian subcontinent.
The Company has decided to incorporate a fully owned subsidiary, Emaar Malls, which will develop world class shopping malls in the UAE, Saudi Arabia, Jordan, Syria, Lebanon, Algeria, Morocco, India and Pakistan. The Company is already fast developing the world’s largest shopping destination – the 12 million square feet Dubai Mall – in the Burj Dubai Development in the heart of Downtown Dubai.

His Highness General Sheikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence said: “The Dubai Mall is shaping up to be an example of what can be achieved in this region and is an iconic symbol of what we could share and replicate here and elsewhere, starting first with the Gulf and South Asian regions.”

To successfully penetrate into these markets and accelerate the entry process, Emaar Malls will leverage the strategic international operations that Emaar Properties already has in Saudi Arabia, Morocco, Egypt, India and Pakistan, besides its home base in the UAE.
Emaar Malls would tap into Emaar Properties’ established reputation and depth of experience as a developer and manager for commercial, residential and retail properties in the UAE and internationally.

Speaking at a press conference here today, Emaar Chairman Mohamed Ali Alabbar said: “The malls would benefit the Group in two ways: revenue would come from both real estate development and later on from managing these malls as assets to the Group. Our strategy would be to procure land at competitive prices and then unlock their potential by developing them into retail properties of good real estate value´.

“The Middle East and the Indian subcontinent have a combined customer base exceeding two billion, of which half are young people who are increasingly enjoying higher disposable income levels and aspire for a better lifestyle. This will form significantly lucrative catchments for the customer base for Emaar Malls. In addition to good quality housing, people are increasingly looking for a fantastic shopping experience, rivaling that of developed countries. We aim to create this for them´.

“The GDP of the countries in the catchments are in excess of $1.7 trillion and the retail sector will be one of the key drivers of growth and development in this region. International studies by renowned consultants such as McKinsey have clearly demonstrated that the retail industry is one of the largest worldwide and growing at a rate of 15 per cent annually. Over 45 per cent of the GDP of any economy is driven by the retail sector,” Mr. Alabbar said.

In addition, retail space per capita in the USA is 17 square feet, while in Asia it is 7 square feet and in the MENA region is less than 2 square feet. The Indian subcontinent is a fraction of one square feet. The market thus is ripe for expansion and additional retail space will be a boon for mall developers, retailers and consumers.
“Besides affording the surrounding community with convenience, comfort and leisure enjoyment, shopping malls have the ripple effect of boosting the real estate value of both commercial and residential properties around them. From our experience too, we observe building new retail properties often give economies a shot in the arm by invigorating different industries including construction, property and tourism as well as helping to create new jobs,” Mr. Alabbar concluded.

Emaar Malls will fund its retail properties with part of the capital raised from Emaar Properties’ recent rights issue. The company is not ruling out other forms of financing besides using its own cash reserves.

Depending on the country and specific to each project, recouping the capital outlay would involve various income streams, including lease and rental fees. Where suitable, Emaar Malls may opt to co-own the retail properties with local partners.

Bahria Town has started its planning for building homes for VICTIMS
:applause: :applause: :applause: :applause:


today bahria town in national newspapers have announced they will build homes for victims.

Bahria Town announced construction of 100 Awami Villas in effected area as an experimental basis.

Bahria Town team is working to develope infrastructure for constructing homes in Muzafarabad area.

Lets hope Bahria Town will work on this ground without wasting time.


this is what it should look like, these are the ones in rawalpindi
http://www.lahorerealestate.com/modules/coppermine/albums/userpics/Awami_Villas_Ads_Aug2005_1.JPG

well done bahria times! :applause: :applause: :applause:

bahria times?

that is a magazine.

Excellent!

:applause: :applause: :applause: :applause: :applause: :applause:

malik riaz has started planning for victims

http://www.pakrealestatetimes.com/attachment.php?aid=390

Hats off to Bahria Town

Thats a good news¬! I think the 13 wealthy families in Pakistan should come up also and spend some money in the reconstruction of Azad Kashmir¬!!!!

Excellent news ! I hope its a well planned community. :)

500 Homes in Muzaffarabad

Todays column of Malik Riaz is intersting.
http://www.pakrealestatetimes.com/attachment.php?aid=391


He is talking about modern light weight houses which will be safe during earthquake. This makes sense and is exactly what is required in Pakistan now. Looks like he is planning to setup 500 houses in Muzaffarabad. I wish he could do it fast and put first batch of model houses in Muzaffarabad by November. He may construct roads etc afterwards and just put the shelter first. The priority should be to Children and women who have lost their male members.
Sooner he will do it the better it will be for setting up rehabilitation trend in that area.
I wish him Good luck.

so when is construction gona start for these townhouses in muzzafarabad...will bahria town charge the residents for them...if so how much...

KARACHI Pakistan plans to start allowing real estate investment trusts in September, expecting to draw as much as $3 billion in investments from overseas funds over the next five years, an official at the regulator said Wednesday.

Draft rules for the trusts, which pool funds to buy properties and distribute rental income among investors, will probably be approved by the Finance Ministry before September, said Salman Ali Shaikh, commissioner at the Securities & Exchange Commission, which will regulate the REITs.

"Just three million Pakistanis own land out of a population of 160 million," Shaikh said in an interview in Islamabad. "REITs will mean that those who don't have access to land will have access to land upsides."

Pakistan is tapping the REIT market five years after Asian pioneer Japan, which was followed by South Korea, Singapore and Hong Kong. The government wants to take advantage of rising property values in the $118 billion economy, give developers an opportunity to free up cash and more choice for investors.

Pakistan is competing with its neighbors for investments with regulations that allow full foreign ownership, free movement of capital and unrestricted repatriation of profits. India said that it will issue policy guidelines for REITs this week.

The government may have to contend with a poorly regulated real estate market, where values are frequently underreported.

"We've been waiting for the law to be finalized so we can get into REITs," said Nasim Beg, chief executive officer of Arif Habib Investments, which plans to apply for a REIT license. "But the major limiting factor will be the lack of transparency in real estate prices."

Pakistan's property market prices have grown at an average annual pace of 20 percent over the last two decades, according to Arif Habib Investments, which oversees 20 billion rupees, or $332 million, in stocks and bonds.

Record overseas remittances channeled into real estate by workers in the Middle East and the United States have also inflated property prices, Beg said. Overseas remittances have quadrupled to an average annual $4 billion since 2002, according to the central bank.

The introduction of REITs could help the government improve regulation in the property market as projects under the trusts are formally evaluated and priced. "We have to impart structure, logic and transparency to an activity that's already taking place rampantly," said Shaikh.

The Securities & Exchange Commission, which has patterned the regulatory structure for REITs on Singapore and Hong Kong, expects that about six REITs will be licensed within the first year, Shaikh said. Land will be forfeited to the government if it is not developed within four years of purchase, which would curb speculation, he added.

The Securities & Exchange Commission has also recommended capping property registration duties at 1 percent of the land value, eliminating stamp duties which differ by province and range from 3 percent to 5 percent, to lower costs, Shaikh said.

A REIT management company will need a minimum equity of 50 million rupees and will have to distribute 90 percent of its net annual income like mutual funds, according to a copy of the draft rules. Each fund by a REIT manager will need a minimum size of 250 million rupees.

Developers also suggested the government levy a one-time 2 percent tax on the value of the land and provide amnesty against further taxes or probes to prevent underreporting of land prices.


http://www.iht.com/articles/2006/06/21/bloomberg/sxreits.php

^^ I think this has been in the talks for a while now. It is a good thing for investment and pays high dividends if somebody is looking for a good place to invest their money in.

wats is REITS and what does it do?

^^ I think this has been in the talks for a while now. It is a good thing for investment and pays high dividends if somebody is looking for a good place to invest their money in.

Should be good for Pakistan only if allowed strictly with international standards, otherwise it will have the same fate which our stock market seeing these days...


Pakboy:
A real estate investment trust (REIT) is a real estate company that offers common shares to the public. In this way, a REIT stock is similar to any other stock that represents ownership in an operating business. But a REIT has two unique features: its primary business is managing groups of income-producing properties and it must distribute most of its profits as dividends.

more you can find here

http://www.investopedia.com/articles/04/030304.asp

Salams,
I want to give a house on rent in Karachi. But I have heard some horror stories. Tenents dont pay rent on time, refuse rent increases and worce the tanents refuse to vacate and than the case goes to the courts and the legal fight goes on for 10 or 15 years. Is there a way out to earn rental income and still not worry about tanents. Thanks.

You just need to hire my security service and we can take care of those issues.

Dont give it on rent to your relatives, rest will be fine :)

Make a written agreement on official paper beforehand. Keep atleast 2 witnesses and allow the tenant to bring a witness too if they so desire. All the clauses should be in the agreement i.e. review of rent on yearly basis, notice of termination from landlord's side (usually longer notice period), notice of termination of agreement from tenant's side (usually shorter notice period) etc. etc.
You can even make a video of the event with your mobile camera. Due to this the tenant will be less likely to do any hanky panky. and even if it happens you will have a fool proof case in the courts.

Salams,
I want to give a house on rent in Karachi. But I have heard some horror stories. Tenents dont pay rent on time, refuse rent increases and worce the tanents refuse to vacate and than the case goes to the courts and the legal fight goes on for 10 or 15 years. Is there a way out to earn rental income and still not worry about tanents. Thanks.

It has happened to me twice!! Fortunately my father knew the Sindh Chief Minister and the IG Police so we threw the as*hole out on his ass. Would you believe he had 18 people living in the house!! 18!?!?!?! :ohno:

Make a written agreement on official paper beforehand. Keep atleast 2 witnesses and allow the tenant to bring a witness too if they so desire. All the clauses should be in the agreement i.e. review of rent on yearly basis, notice of termination from landlord's side (usually longer notice period), notice of termination of agreement from tenant's side (usually shorter notice period) etc. etc.
You can even make a video of the event with your mobile camera. Due to this the tenant will be less likely to do any hanky panky. and even if it happens you will have a fool proof case in the courts.

We did all that, but to no avail. Did you know that the laws of Pakistan favour the tenants over the landlords? If you give the tenant an eviction notice then the tenant can go to a court and get a stay order for an indefinate period of time! And very rarely does the court refuse the tenant a stay order. Rest assured, I will never give my property on rent ever again. One of my property has been rotting for 20 years but has never had a tenant.

It has happened to me twice!! Fortunately my father knew the Sindh Chief Minister and the IG Police so we threw the as*hole out on his ass. Would you believe he had 18 people living in the house!! 18!?!?!?! :ohno:

We did all that, but to no avail. Did you know that the laws of Pakistan favour the tenants over the landlords? If you give the tenant an eviction notice then the tenant can go to a court and get a stay order for an indefinate period of time! And very rarely does the court refuse the tenant a stay order. Rest assured, I will never give my property on rent ever again. One of my property has been rotting for 20 years but has never had a tenant.

How sad!!!! Because of this problem you cannot benefit from your investment except when price appriciates and you sell. How about giving property to Multinational companies, Embassies or Foreign Nationals. Does that make any difference?
Thanks.

How sad!!!! Because of this problem you cannot benefit from your investment except when price appriciates and you sell. How about giving property to Multinational companies, Embassies or Foreign Nationals. Does that make any difference?
Thanks.

I think that should help. Poor oogabooga seems to have had a bitter experience.

How sad!!!! Because of this problem you cannot benefit from your investment except when price appriciates and you sell. How about giving property to Multinational companies, Embassies or Foreign Nationals. Does that make any difference?
Thanks.
Thats what most of the worried people do...:)

Ok, as far as I know, by law you cannot evict a tenant. That's some crappy law, but I think it's the same in most countries. I don't know the exact details, though. But, if the owner is 60+ in age, then he/she can evict. That's why you'd see most contracts being signed by an elderly person. I think that that person needs to be a woman also, but I am not sure. I'd really recommend talking to a lawyer and a ghunda before renting your property.

Ok, as far as I know, by law you cannot evict a tenant. That's some crappy law, but I think it's the same in most countries. I don't know the exact details, though. But, if the owner is 60+ in age, then he/she can evict. That's why you'd see most contracts being signed by an elderly person. I think that that person needs to be a woman also, but I am not sure. I'd really recommend talking to a lawyer and a ghunda before renting your property.
The latter helps the most at the end of the day.:lol:

Nothing will save you at the end of the day if your house is illegally occupied, not the written statements, not the stamp paper, not the witnesses, the only thing which can save you is the MQM ;)

Btw its always better to have an Advocate that you know, you can also get that rental contract made through him/her if you want.

Well its not all bad!

My uncles house has been on rent for several years and they always somehow seem to get decent people. If you do want to rent your house then rent it to newly married or people with 1 kid or 2 or preferably infertile couples :lol: !

But there are good people out there, its not like everyones a scoundrel! Its always good to have contacts with some local ghundas though. Never ask MQM for help though, EVER! Because they never forget you and they will come back for donations and just keep bothering you.

Well its not all bad!

My uncles house has been on rent for several years and they always somehow seem to get decent people. If you do want to rent your house then rent it to newly married or people with 1 kid or 2 or preferably infertile couples :lol: !

But there are good people out there, its not like everyones a scoundrel! Its always good to have contacts with some local ghundas though. Never ask MQM for help though, EVER! Because they never forget you and they will come back for donations and just keep bothering you.
Well, what most people do is rent it to people they have a relation with like a friend of a friend. This way at least you can sleep better at night to some extent.

Yes, stay away from the MQM. I once asked them to wipe my arse and they keep coming back for them donation or they say they will take me to their torture chambers.

I once asked them to wipe my arse

:eek:

Ok, as far as I know, by law you cannot evict a tenant. That's some crappy law, but I think it's the same in most countries. I don't know the exact details, though. But, if the owner is 60+ in age, then he/she can evict. That's why you'd see most contracts being signed by an elderly person. I think that that person needs to be a woman also, but I am not sure. I'd really recommend talking to a lawyer and a ghunda before renting your property.

If owner is 60+ in age still if the tenent goes to court and gets a stay order, you could be stuck for years.

In Dubai from what I have heard, its preaty safe to rent out your property and you get decent returns too. Also you get 6 months rent in advanc and a post dated check for the next 6 months. I wish situation was the same in Pakistan but unfortunately it is not.

I had a detailed talk with my advocate when I was in Karachi, there are some laws which you can implement to evict the tenant if they have illegally occupied the house.

One is if your son is getting married, you can legally ask the tenant to vacate so that your married son can move into that house, second is if the tenant fails to pay rent for I believe 3 months, and or if that house has been damaged physically.

Dont own property in Pakistan that you dont use urself, period. There are plenty of vultures out there.
You can make all the legal documents you want, if someone wants ur land they just have to pay a clerk at the district gov't office and you're out. Thats the kind of people we ended up with. And would u believe it was a f 'ukin MNA too. What a nightmare.
Once u get politics and gounday involved, believe me people tend to get hurt, and that just make things worse.
Rent it to family or friends. Other than that just let it sit there or sell it.

Dont own property in Pakistan that you dont use urself, period. There are plenty of vultures out there.
You can make all the legal documents you want, if someone wants ur land they just have to pay a clerk at the district gov't office and you're out. Thats the kind of people we ended up with. And would u believe it was a f 'ukin MNA too. What a nightmare.
Once u get politics and gounday involved, believe me people tend to get hurt, and that just make things worse.
Rent it to family or friends. Other than that just let it sit there or sell it.

My Extended Family owns this Massive plot in DHA Phase 5. Back in Benazir Bhutto's time, Asif Ali Zardari had illegally occupied the plot and built a boundary wall on it, the bastard even made forged documents! So my family filed a case against Zardari and he was legally represented in court by some guy whose last name was Junejo (cant remember the first name). The case was in the court for well over 10 years and my family was threatened by the PPP several times also.

The case was finally settled when Musharraf came into power. My family spent close to 7-8 million Rupees in the process, thats not including all the money & gifts we gave to the lawyers!

But if you want to buy property in Pakistan in which you dont plan on living then just buy it but dont take posession of the property and that way its the builders responsibility. I have property for which I have not taken the posession for almost 17 years now! I just inquired about it 2 months ago and the builder said that the property is fine and if I need to take posession then just let them know and they will give me posession and put the finishing touches on the property and hand it over in 1 months time.

A plot is not that easy to occupy to be honest, you should be smart enough to build high boundry walls around it and put a plaque IN the WALL which says the owners name and plot number ..

And if you can afford a guard from a reputable security agency.

A plot is not that easy to occupy to be honest, you should be smart enough to build high boundry walls around it and put a plaque IN the WALL which says the owners name and plot number ..

And if you can afford a guard from a reputable security agency.

Illegally occupying a plot in Defence should be impossible, because the Defence Housing Authority guarantees the safety of the plot! And the DHA is run by the army and you know better than me that nobody f*ucks with the Army! Which is why my family never hired a guard or anything, but there was a boundary wall around it and the owners name was also inscribed on it.

But the husband of the Prime Minister of the country occupied it, so its not like it was negligence on the part of DHA! :lol:

From what I have heard it is impossible to illegally occupying plot in DHA. I think your case was an exception due to obvious reasons. But there are a lot of problems with non-DHA plots, i.e. KDA. The original file are often missing from KDA office and crooks try to sell others property. You have to build boundry walls, have guards, etc on empty plots to protect against illegal occupation.

How sad the situation has become in Pakistan. You cant even rent out your own property. One of the most beautiful countries in the world.....and what a mess it has become. Also there is no infrastructure. In DHA, which is supposed to be the best area, there is no line water, the electricity is low voltage so you cant run ACs and roads are broken...........yet the prices are in millions of $. Thank God you have mobile phones so you dont have to rely on land lines. Another issue is low pressure at CNG stations, which are so few in to begin with.........So you have to wait 1/2 hr to get CNG.

...he was legally represented in court by some guy whose last name was Junejo...

Oh, I've heard that name before. This a$$hole was involved in our little problem too. Luckily my uncle is an Air Vice Marshal and he was able to sort things out for us, it only took about six months or so. We were not only threatened, but people were actually kidnapped and beaten. Thank God nobody was killed.

But its not just PPP, I know of people that have been through the same at the hands of Nawaz Sharif and his crew also. It is such a relief to know that those two will never return to Pakistan. :banana: :banana: :banana:

Oh, I've heard that name before. This a$$hole was involved in our little problem too. Luckily my uncle is an Air Vice Marshal and he was able to sort things out for us, it only took about six months or so. We were not only threatened, but people were actually kidnapped and beaten. Thank God nobody was killed.

But its not just PPP, I know of people that have been through the same at the hands of Nawaz Sharif and his crew also. It is such a relief to know that those two will never return to Pakistan. :banana: :banana: :banana:

To get things done in Pakistan, even if they are your right, you are forced to pay (bribe) the officials, use high up's source or political influence. How long can countries like this last and what will be the fate of such failed states in this global economy.

IISinbadII, which country did you say you're from? India or Israel? You seem to ask a lot of questions and now you've started making derogatory comments. Forget about Karachi...you cannot buy property here.

Hi all,

I am interested in possibly investing in some properties in Islamabad but i havent read much into it, i was wondering if anyone has any advice or links possibly?

Is it worth investing in the long run as it seems house properties along with apartment properties will rise up

thx

i do not live in islamabad, but in lahore & perhaps in islamabad as well land prices are down at the moment and looks to me a good time for investment.

http://www.ipeconline.biz

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Halls:
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Timings:
10:00 am to 7:00 pm.

Conference Dates:
16th to 17th July 2007

Venue:
Marriott Hotel, Karachi, Pakistan.

Hall:
Crystal Ballroom

Set to be the biggest property show in Pakistan, IPEC 2007, now in its second year is a premier exhibition of its kind which will focus on property networking, development and investment.

IPEC is ready to create an experiential module where one can meet exhibitors, gain information from local and international property developers and explore new property projects from Pakistan and Global. Moreover, IPEC is ideally positioned for the banks and financial institutions to exhibit their latest real estate products and services.

IPEC 2007 is probably the best place in Pakistan to display property development and investment opportunities under one roof. IPEC draws upon its unique international coverage and reputation to bring together the most influential decision-makers in the market, offering them access to the largest available showcase of development projects IPEC is the show which brings all aspects of property and real estate together.

IPEC provides international and local exhibitors an opportunity to showcase their projects and services on a unique platform which comes with a truly international appeal. This gives foreign real estate developers and marketers a chance to create new business opportunities and help expand their businesses in Pakistan.

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Delete...

KAZAKHSTAN IS THE GREATEST COUNTRY IN THE WORLD. ALL OTHER COUNTREI S ARE RUN BY LITTLEL GIRLS :scouserd:

Yaar, I think these are few big investors who have bought these and now will sell slowely to general public while keeping the prices and demand high. This will make small investor think that the demad will always be there and prices will continue to go up. Once the big investor has left the market small investor is stuck with these with no buyers.
I think like most countries, real estate market is attached to the local job market and wages. There is nothing I see in the Karachi's job market which will lead me to believe that there will be a demand of say 1000 to 2000 luxury flats priced at 1.5 to 3 crors. They might be empty for a long time and you know what happens to vacant property. Would you want to live in a big building where occupancy is 20% at best? :(
I hope I am wrong and Pakistan does very well Insha Allah and people can buy these flats to actually live in them. Amin! Otherwise, these buildings will remain empty.

There is certainly a limited market for very expensive apartments, but this project will be oriented towards overseas Pakistanis. There are various reports of there being up to 3 million Pakistanis living abroad, of which tens of thousands will be able to afford 1-3 crore flats (US$ 165-500,000).

This particular project is trying to sell 4,000 apartments over a period of 5-6 years. That is, 800/year. Not an impossible task.

Potential buyers also include people who live in Pakistan. There has been such a massive rise in real estate prices that the must be tens of thousands of people who are now dollar millionaires. They would have the capacity to buy these apartments.

The only issue will arise when projects much larger than this become available for sale, like Diamond Bar and Sugurland City with tens of thousands of housing units. We'll see how it goes at that time.

Also to keep in mind that while Pakistan's per capita income might be $1,000 but the income in the major cities like Karachi is probably ten times that at $10,000. So these cities represent a very reasonable level of prosperity, even by international standards.

There is I believe a pent-up demand for high quality housing product, that has gone unmet. Once these good quality apartments are available for sale a whole new market will be created of buyers who previously would not consider buying in one of the local builder projects. A case in point is myself.

3 million??? there are 8 million overseas pakistanis!

plus, i think there is good demand in the local market as well. there are a lotta people with money. We have a middle class of 30 million now.

Also to keep in mind that while Pakistan's per capita income might be $1,000 but the income in the major cities like Karachi is probably ten times that at $10,000. So these cities represent a very reasonable level of prosperity, even by international standards.

True that the per capita income in ISB, Karachi and Lahore is between 15 to 30 times as much as Pakistan's per capita income. I'm not joking, there are many rich people out there.

yaars, there is no problem in selling these, they will sell like hotcakes, you dnt need overseas pakistani, they can easily sell localy.
we have finace available easily now, and secondly we have more property investors then ever before.
there is hude demand for these developments, why do you think emaar, nakheel, giga, raya, areaa are coming to pakistan, they are not coming and putting in billions for the sake of it they have obviously done their research.
and just look how tiny developers have grown into massive real estate empires in recent years like bahria town, dha, eden etc.

there is a massive demand obviously.

Okay people, here's an eye witness account of the opening day of registration for Crescent Bay on Dec 9th.

My wife is in Karachi so I asked her to go and register for an apartment. At this time they're only registering buyers, rather than actually selling.

When my wife got there at 10am she found that the whole area was jammed with cars and people, there was no place to park. And we're talking about a deserted area of the city.

There were long lines of people (actually anarchy) but my wife managed to get a token to get inside the sales office. They told her to come back in 4 hours.

A few hours later she went back again and found that there was still a huge crowd there and no one was being allowed inside the sales office. Then the crowd started getting angry and my wife participated in a riot with some fat ladies and managed to barge into the sales office.

Inside the sales centre there was a pre-existing riot already in progress and there were people there with guns. Luckily no one was shooting anyone, but they were close.

There were estate agents there from all over the country with hundreds of orders to buy. One gentleman from Islamabad had three hundred orders.

No on got ANYTHING. Emaar cancelled the registration process and announced that there'll be a ballot for the 800 units that are available.

My wife managed to get an application form and we're going to file at least 10 applications in order to get a chance to buy one apartment.

In my opinion Emaar could have sold all 4,000 units in a couple of hours.


well its exactly what i said, i dnt know how people can doubt the sale of any real estate projects in pakistan when demand is touching the sky and supply is in the sewage.
this obviously carried the emaar name but even small bullsheet projects sell out for good amounts of money.

hopefully this can make news back to the gulf and other countrys and waken them up to the enoumous demand here in pakistan.
this should also encourage emaar to invest more in pak.

There is certainly a limited market for very expensive apartments, but this project will be oriented towards overseas Pakistanis. There are various reports of there being up to 3 million Pakistanis living abroad, of which tens of thousands will be able to afford 1-3 crore flats (US$ 165-500,000).

This particular project is trying to sell 4,000 apartments over a period of 5-6 years. That is, 800/year. Not an impossible task.

Potential buyers also include people who live in Pakistan. There has been such a massive rise in real estate prices that the must be tens of thousands of people who are now dollar millionaires. They would have the capacity to buy these apartments.

The only issue will arise when projects much larger than this become available for sale, like Diamond Bar and Sugurland City with tens of thousands of housing units. We'll see how it goes at that time.

Also to keep in mind that while Pakistan's per capita income might be $1,000 but the income in the major cities like Karachi is probably ten times that at $10,000. So these cities represent a very reasonable level of prosperity, even by international standards.

There is I believe a pent-up demand for high quality housing product, that has gone unmet. Once these good quality apartments are available for sale a whole new market will be created of buyers who previously would not consider buying in one of the local builder projects. A case in point is myself.

I uderstand your point about the overseas Pakistanis. I myself is one living in the US for past 24 years. If mostly overseas Pakistanis buy these properties then who will live in them? If no one lives in these masive projects then price will automatically go down with time not to mention the upkeep of the buildings will be a nightmare. No one want to buy a flat in a huge empty builing. It would not be safe. I hope I am wrong but I went to Bangkok last year and saw many nice buldings empty in down town areas.
I own a flat in a newer building in Clifton block 3 which is to this day half empty. The price has not gone up for last 3 years and bulding was completed 1.5 years ago. This building has only 8 floors. What are yourthoughts?

This will only encourage the further development on Bundal and Buddo islands (Diamond Bar city). I think once Crescent Bay is sold out within couple of hours then we will see EMAAR running to develop the Diamond Bar city.

:banana::banana::banana:

Its called speculation and speculation always ends up in a great depression. Look at real estate market in USA. This is scary.:ohno:

Here's a solution to empty buildings: rent them.

For one thing, this project, if properly managed, will have a condominium fee (service charge) that will cover the maintenance and upkeep of the buildings. Hopefully it will be high enough to do a proper job.

Secondly, if managed properly, they will offer to rent the units on behalf of absent owners. That's what I would do if I were in place of Emaar.

The rent probobly will be in the range of Rs.50,000 to 75,000 min. Hopefully there are enough people to rent them. Hopefully, when time comes renter will give back the apartment to the owner. :) It is quite one thing to give it on rent and but getting it back can be a totally different story. A lot of overseas Pakistani are weary of this fact.
I just pray that things work out for everyone and Insha Allah income of average Pakistani to rise to a level where average educated young Pakistani can effort these nice places. I get really disappointed when I go to Karachi and see once nice building now look like bombed out public housing. Paint peeling, tons of garbage in front and virtually no management to be foud. My flat is close to Bilawal house and if you just look around it is not a pretty picture. In my building peole are living but outside side walk of entrance is not yet completed. Left over building material is sitting there for two years. All the promises of genrators, desalination plants, game rooms, 5 star lobby etc never materialized as promised by the builder. There is still no water except for underground khara water. This is the state of a project where each flat setting for 8 - 10 million. I just hope same does not happen to these projects after builder has sold all the units and moved on.

^^ hb, US and pakistan are two completely different market.

the US housing market is shrinking whereas pakistans is facing explosive growth.

it also depends on which project you buy. the above you mentioned about you're flat, will not happen to a $2.4 billion dollar project by emaar.

speculation is ofcourse a factor. but the truth is, there is real demand which is higher than the supply. and that will always raise the prices.

how can you compare us with pakistan, LOLzzzzzzzzzzzzzzzzzzzz

the us market is saturated, it has 10 million more dvelopers then pakistan.
paksitans market has not even close to being mature yet.
it would be the last thing to do to compare pak with us

pakistan can be compared to malaysia, as its going through a same phrase they went through.

how can you compare us with pakistan, LOLzzzzzzzzzzzzzzzzzzzz

the us market is saturated, it has 10 million more dvelopers then pakistan.
paksitans market has not even close to being mature yet.
it would be the last thing to do to compare pak with us

pakistan can be compared to malaysia, as its going through a same phrase they went through.

mere bhai, I am not comparing US to Pakistan. This is economic 101. The rules do not chage with the country. Anywhere you have one guy trying to buy 300 flats in a building is called speculation unless he has 300 wives and 900 children. :nuts: It does not matter if it is in Florida or Karachi the end result willbe the same. The effects of speculation will be the same. Prices will drop 30% in 6 moths, foriegn investor flees and supply will increase. If you don't have local buyers who want to actually live in these places you have empty flats putting more presuure on prices. It may happen in a month, year or 5 years. It will happen. That is all I am saying. Again, I pray it is not the case and real estate keeps on going up in Pakistan defying all logic and economic norms. I will be the happiest guy because I do own property in Pakistan. :)

how can you compare us with pakistan, LOLzzzzzzzzzzzzzzzzzzzz

the us market is saturated, it has 10 million more dvelopers then pakistan.
paksitans market has not even close to being mature yet.
it would be the last thing to do to compare pak with us

pakistan can be compared to malaysia, as its going through a same phrase they went through.

Mere Jiggar, good thing you brought up Malaysia. Here is a little background on Malaysian real estate and how it was Malaysian governemnt who took specif steps to stimulate the market. Can you tell me what Pakistani government is doing that resembles Malaysia?

1998 was a bleak year for Malaysian economy, following the regional pattern. The country's GDP shrank by 7.5%, real estate transactions fell by 32%, and the overall decline in real estate values was some 48%. Before the 1997 Asian economic crisis, real estate and related sectors of the economy accounted for 20-30% of Malaysia's GDP. 1999 saw the tentative upturn in economic growth that has occurred in much of the region, yet the amount of surplus property in the country is valued at 14% of GDP. There are approximately 2 million square feet of vacant office space in Malaysia and a surplus of around 90,000 housing units, mainly multi-family condominium units.

The Malaysian government took specific steps in 1999 to try to increase activity in the real estate market. One was a program to temporarily suspend tax and stamp duties on real estate sales. This cut transaction costs by 25%.I don't see a tax cut for Pakistnais rather an increase.

Another development was the decision by the central bank, the Bank Negara Malaysia (BNM), to exempt real property investments from an exit tax that has been imposed on the repatriation of foreign capital - partly a response to the negative effects of the currency speculation preceding the regional economic crisis. Foreigners are still liable for the 30% capital gains tax on the sale of any real estate.3 Essentially, this makes the real estate market a friendlier sector to foreign investment in a tightly controlled economy. Real estate investments are only liable for capital gains taxes, while portfolio investments face both capital gains and exit taxes. Malaysia's Prime Minister Mathahir Mohamad is both wary and publicly critical about what he sees as the damaging fickleness of international capital. His response to the economic crisis has been to steer the country toward a less open economy.

Again, in our case it is pure speculation where in Malaysia has a higher GDP, national reserves, better exports, job market, well educated work force, smaller nation debt etc etc etc.

Discuss.

I uderstand your point about the overseas Pakistanis. I myself is one living in the US for past 24 years. If mostly overseas Pakistanis buy these properties then who will live in them? If no one lives in these masive projects then price will automatically go down with time not to mention the upkeep of the buildings will be a nightmare. No one want to buy a flat in a huge empty builing. It would not be safe. I hope I am wrong but I went to Bangkok last year and saw many nice buldings empty in down town areas.
I own a flat in a newer building in Clifton block 3 which is to this day half empty. The price has not gone up for last 3 years and bulding was completed 1.5 years ago. This building has only 8 floors. What are yourthoughts?

You've hit the nail on the head - there are some unscrupulous local builders who build third-rate buildings that end up as slums even before they're completed. I'm aware of such projects. And this kind of behavior has made people cynical of all builders.

That's all the more reason why Emaar is a breath of fresh air in Pakistan. As a AAA multinational company not only will they build to a high standard, but they will also raise the standards in Pakistan. In the future local builders will need to improve their quality in order to compete, and local construction companies will get more experience with higher quality construction.

hb,

different economic phenomenons apply to developed and developing markets. pakistan is an extremely fast growing market. the US is comparatively stagnant. the US has more supply than demand. in pakistan, the demand is growing so fast its outstripping supply.

it's not just speculation, which, ofcourse exists, there is a lot of it. but, there is a REAL DEMAND as well. i have some family in building. and there is an enormous amount of demand. from local market, overseas pakistanis, enormous amount. you think in a city like karachi of 25 MILLION PEOPLE, which is probably growing at around 10% per annum (economy) there aren't going to be people wanting and able to live in 4000 apartments???

my friend i have only heard of quality projects selling for higher and higher prices in every phase over the last 2/3 years.

if you're buying for the long term, you'll be good. in the short term, ofcourse the market may come down many times, and, it has in the past. but in the long term, you will not lose.

you cant compare malaysia to pakistan, malaysia is much more stagnant now compared to pakistan. more saturated than pakistan. plus secondly the entire of east asia including malaysia went through the drain during their crisis, they went bust. we haven't had a crisis, why does the govt. need to stimulate the market? the markets are already too stimulated leading to high inflation.

OK, let me summarize. There's a lot of demand, but prices are going upward sharply coz of speculation. I've done that too and made money.

hb,

different economic phenomenons apply to developed and developing markets. pakistan is an extremely fast growing market. the US is comparatively stagnant. the US has more supply than demand. in pakistan, the demand is growing so fast its outstripping supply.

it's not just speculation, which, ofcourse exists, there is a lot of it. but, there is a REAL DEMAND as well. i have some family in building. and there is an enormous amount of demand. from local market, overseas pakistanis, enormous amount. you think in a city like karachi of 25 MILLION PEOPLE, which is probably growing at around 10% per annum (economy) there aren't going to be people wanting and able to live in 4000 apartments???

my friend i have only heard of quality projects selling for higher and higher prices in every phase over the last 2/3 years.

if you're buying for the long term, you'll be good. in the short term, ofcourse the market may come down many times, and, it has in the past. but in the long term, you will not lose.

you cant compare malaysia to pakistan, malaysia is much more stagnant now compared to pakistan. more saturated than pakistan. plus secondly the entire of east asia including malaysia went through the drain during their crisis, they went bust. we haven't had a crisis, why does the govt. need to stimulate the market? the markets are already too stimulated leading to high inflation.

Most of the buying in Emaar is speculation. Speculation is what generally drives up real estate markets in the short term. Secularpakistan, I have explained that in pakistan DEMAND is NOT outstripping supply, this is *ONLY* and ONLY the case in Karachi. Karachi is nto the whole of Pakistan, in all other regions there are immense amounts of land and options to chose from.

Yes quality apartments like Bon Vista, Creek Vista etc. do tend to appreciate significantly more than the small ones made by the average joe builder.

Ofcourse you cant compare Malaysia to Pakistan, that would be really taking down Malaysia, there is genuine growth, genuine tourism, proper security and stability, proper systme of land registration, no QABZA etc. that there isnt in Pakistan. To hold land in Pakistan is extremely unsecure and Pakistan is not going through any period of stability nor progress that can compare with Malaysia, the stock market is increasing and 200 factories are closing in S.I.T.E. every month - banks are not lending to textile sector and no new manufacturing interests are being set up - the new way of making money is prue speculation, one day market goes up by 10 percent, next day falls by 10.

DEMAND is out stripping supply by over 100 times.

be suprised but the highest demand for housing is in peshawar, even small citys like sialkot, faislabad, multan have higher demand then lahore and karachi.

Pakistans real estate market is crying for new developments.

OK, let me summarize. There's a lot of demand, but prices are going upward sharply coz of speculation. I've done that too and made money.

speculation is over, it was there 3/4 years ago.

you will see these emaar apartments increase manifold in the next 5 years and once complete it will increase even more, it may come back down after that but never to todays price, never ever.

Speculation is over, hence the prices have come down and the housing market in Karachi is down. Though not totally over. Secondly, I never said there isn't any demand, there is. But the price hike is mainly due to speculation. And oh, speculation wasn't over 3/4 years ago. I was doing it about 2 years back. And I wasn't the only one. Hell, I was just a kid in the field.

I can not believe how economics is being butchered here. Use your common sense people, an average Pakistani has 3-4 kids, now unless every pakistani already owns 3-4 spare houses, you will have to meet that demand somehow. This explosive demand is pushing the prices up and it is also giving rise to tremendous amount of speculation (just like such demand would in every other market), but its naive to say that its all speculative growth. Pakistan desperately needs more housing projects.

And I am not even going to bring up the issue of thousands upon thousands of millionaires in Pakistan who can afford to (and want to) live in better housing schemes, but they have no options. They are dying for better housing projects.

Speculation is over, hence the prices have come down and the housing market in Karachi is down. Though not totally over. Secondly, I never said there isn't any demand, there is. But the price hike is mainly due to speculation. And oh, speculation wasn't over 3/4 years ago. I was doing it about 2 years back. And I wasn't the only one. Hell, I was just a kid in the field.

what did you do?

last year i bought a plot in toba tek singh in an u/c estate for 10 laks, 6 months later estate was complete and i sold it for 20 laks,
i made 100% return in 6 months :banana:

my mate who use to work in a garage fixing exhust pipes 5 years ago in toba tek singh, today is a big real estate developer in tts, every scheme of his has so far sold out before construction has even began.

mere bhai, I am not comparing US to Pakistan. This is economic 101. The rules do not chage with the country. Anywhere you have one guy trying to buy 300 flats in a building is called speculation unless he has 300 wives and 900 children. :nuts: It does not matter if it is in Florida or Karachi the end result willbe the same. The effects of speculation will be the same. Prices will drop 30% in 6 moths, foriegn investor flees and supply will increase. If you don't have local buyers who want to actually live in these places you have empty flats putting more presuure on prices. It may happen in a month, year or 5 years. It will happen. That is all I am saying. Again, I pray it is not the case and real estate keeps on going up in Pakistan defying all logic and economic norms. I will be the happiest guy because I do own property in Pakistan. :)

saab jee, its not about rules or not, you just cant compare usa to pakistan, you are comparing ants with spiders, be realistic, its not about rules, the real estate market in usa is a complete different ball game to pakistan.

those people who are here to buy 300 flats or villas hardly make up 1% of the real estate markets customers.
these people are here to get an investment in a great investment oppertunity while others are here to live in a posh place,
the demand for it is huge, you will see the prices for this double when the development is complete.
demand has gone through the roof and continues to go up while supply is in the celler have a beer.

Oh and US market crashed because they were providing sub-prime housing loans, that is loans to poor people who normally wouldnt have been able to afford them, at higher interest rate than normal, so that these poor people could buy houses for themselves. When interest rates went up, these people couldnt afford to pay their mortgages anymore, hence this collapse of housing sector in US.

Now explain to me how this has even the slightest relevance to pakistani market. (I don't know anything about Malayasian market so unlike you I wont embarrass myself by pretending to be an expert in it)

Mere Jiggar, good thing you brought up Malaysia. Here is a little background on Malaysian real estate and how it was Malaysian governemnt who took specif steps to stimulate the market. Can you tell me what Pakistani government is doing that resembles Malaysia?

1998 was a bleak year for Malaysian economy, following the regional pattern. The country's GDP shrank by 7.5%, real estate transactions fell by 32%, and the overall decline in real estate values was some 48%. Before the 1997 Asian economic crisis, real estate and related sectors of the economy accounted for 20-30% of Malaysia's GDP. 1999 saw the tentative upturn in economic growth that has occurred in much of the region, yet the amount of surplus property in the country is valued at 14% of GDP. There are approximately 2 million square feet of vacant office space in Malaysia and a surplus of around 90,000 housing units, mainly multi-family condominium units.

The Malaysian government took specific steps in 1999 to try to increase activity in the real estate market. One was a program to temporarily suspend tax and stamp duties on real estate sales. This cut transaction costs by 25%.I don't see a tax cut for Pakistnais rather an increase.

Another development was the decision by the central bank, the Bank Negara Malaysia (BNM), to exempt real property investments from an exit tax that has been imposed on the repatriation of foreign capital - partly a response to the negative effects of the currency speculation preceding the regional economic crisis. Foreigners are still liable for the 30% capital gains tax on the sale of any real estate.3 Essentially, this makes the real estate market a friendlier sector to foreign investment in a tightly controlled economy. Real estate investments are only liable for capital gains taxes, while portfolio investments face both capital gains and exit taxes. Malaysia's Prime Minister Mathahir Mohamad is both wary and publicly critical about what he sees as the damaging fickleness of international capital. His response to the economic crisis has been to steer the country toward a less open economy.

Again, in our case it is pure speculation where in Malaysia has a higher GDP, national reserves, better exports, job market, well educated work force, smaller nation debt etc etc etc.

the point here dude, is that malaysia saw massive boom in its real estate market due to a boom in its economy, once its economy grew at high speeds, so did its real estate market, the two are linked.

same thing has happened with pakistan we saw a real estate boom cos of an economic boom, with the economy getting stronger and bigger every year so will its real estate market.

currently pakistan has a shortage of 10 million homes a year, and that is just huge, untill this isnt reduced to atleast 3 million, there will continue to be a thrieving real estate market here

Oh and US market crashed because they were providing sub-prime housing loans, that is loans to poor people who normally wouldnt have been able to afford them, at higher interest rate than normal, so that these poor people could buy houses for themselves. When interest rates went up, these people couldnt afford to pay their mortgages anymore, hence this collapse of housing sector in US.

Now explain to me how this has even the slightest relevance to pakistani market. (I don't know anything about Malayasian market so unlike you I wont embarrass myself by pretending to be an expert in it)

when did i say i am an expert on malayasian market :bash:

and lets stop comapring paksitan with usa shall we, both are 2 different ball games, you dnt play cricket on a tennis court, so lets leave the tennis court and find a suitable cricket pitch to continue.

when did i say i am an expert on malayasian market :bash:

and lets stop comapring paksitan with usa shall we, both are 2 different ball games, you dnt play cricket on a tennis court, so lets leave the tennis court and find a suitable cricket pitch to continue.

I wasnt talking to you :nuts:

I was talking to hb7779

I can not believe how economics is being butchered here. Use your common sense people, an average Pakistani has 3-4 kids, now unless every pakistani already owns 3-4 spare houses, you will have to meet that demand somehow. This explosive demand is pushing the prices up and it is also giving rise to tremendous amount of speculation (just like such demand would in every other market), but its naive to say that its all speculative growth. Pakistan desperately needs more housing projects.

And I am not even going to bring up the issue of thousands upon thousands of millionaires in Pakistan who can afford to (and want to) live in better housing schemes, but they have no options. They are dying for better housing projects.
Dear Sir, I know economics. You forgot one very important thing - elasticity. Anyway, that's besides the point. I never said there's no demand. There is. All I am saying is is that the price hike is mainly due to speculation. It may eventually be bought by people who'd actually live there for even $1 trillion, but that doesn't mean that speculation wasn't the reason for price increase "at that particular time". I've been in this business, most people who buy lands don't even know where they are. They keep the land for like a couple of weeks or so. You people should've tried visiting a realtor a couple a years back. It's like they're buying goats or something. THAT'S speculation, nothing else. I bought two plots and still have no idea where exactly they were. Unfortunately, the third one I bought was sold to Emaar where where they're building Crescent Bay! DHA gave 2.5 lakhs to all such people whose plots were resold to Emaar as compensation. Sad story.

Dear Sir, I know economics. You forgot one very important thing - elasticity. Anyway, that's besides the point. I never said there's no demand. There is. All I am saying is is that the price hike is mainly due to speculation. It may eventually be bought by people who'd actually live there for even $1 trillion, but that doesn't mean that speculation wasn't the reason for price increase "at that particular time". I've been in this business, most people who buy lands don't even know where they are. They keep the land for like a couple of weeks or so. You people should've tried visiting a realtor a couple a years back. It's like they're buying goats or something. THAT'S speculation, nothing else. I bought two plots and still have no idea where exactly they were. Unfortunately, the third one I bought was sold to Emaar where where they're building Crescent Bay! DHA gave 2.5 lakhs to all such people whose plots were resold to Emaar as compensation. Sad story.

again my comments were not directed at you, and I am not denying there is speculation either. All I am saying is that people making ridiculous statements about how markets function, saying there is no real demand, or equating prices going up with speculation, need to stop pretending to be second coming of Milton Friedman.

I can not believe how economics is being butchered here. Use your common sense people, an average Pakistani has 3-4 kids, now unless every pakistani already owns 3-4 spare houses, you will have to meet that demand somehow. This explosive demand is pushing the prices up and it is also giving rise to tremendous amount of speculation (just like such demand would in every other market), but its naive to say that its all speculative growth. Pakistan desperately needs more housing projects.

And I am not even going to bring up the issue of thousands upon thousands of millionaires in Pakistan who can afford to (and want to) live in better housing schemes, but they have no options. They are dying for better housing projects.

That is a superficial analsysi. The average Pakistani earns 60 rupees a day, and has 10 kids - DOES That mean there is demand for Crescent Bay or any real estate project!!??

^^hey guys, just chill. Whatever an average Pakistani makes, projects like Crescent Bay are selling like hot cakes. Send CBI to investigate where the hell this money is coming from.

Well, for one thing the average Pakistani is not the buyer for Emaar projects. Secondly, there IS demand for good quality housing that only an international company can provide. This is a pent-up demand that was not being met before. I gave myself as an example of a buyer who would never buy from a typical local builder because of their bad reputation but I would buy from Emaar.

The last time there was a massive rush to buy apartments in Karachi was when Creek City was launched about three years ago. Then the good reputation of DHA resulted in a massive oversubscription for the offered flats; there were ten applications for each unit offered. That was what triggered many foreign investors to come to Pakistan.

After seeing the rush to buy Crescent Bay not only will Emaar increase the investments they make but other companies would also be encouraged to invest. Anyone coming from the West (or Asia) with a good reputation can launch projects and sell them out quickly. That's what I would like to do one day. There are vast fortunes just waiting to be made in Pakistan in real estate development. Billions of dollars.

Still, 4000+ plus apartments in the offing are being sold. Buyers are everywhere.

moved on said it, so lets just move on.

i moved on 3 years ago

You moved with moved on 3 years ago?

:tongue3:

I've been away for 28 years, but I still haven't "moved on". I sometimes wish I had, though.

I've been away for 28 years, but I still haven't "moved on". I sometimes wish I had, though.

There there :pet:

well then consult, 'moved on', im sure he can help.
now back to the topic.

So considering the problems in DHA-Karachi, I've heard that it hasnt really changed the real estate market there, is that true?

I'm talking about when those rains flooded several houses.

floods dnt really change the real estate market, unless there is damage done to the area.
or if it has been done to the houses then the value of the house will drop.

I've been away for 28 years, but I still haven't "moved on". I sometimes wish I had, though.

wow. you have been away for longer than i have been alive

so weird, someone says theyve been away for 25 years someone 28.

im still only 21 :nuts:

The market is down a little, but not due to the rains.

floods dnt really change the real estate market, unless there is damage done to the area.
or if it has been done to the houses then the value of the house will drop.

The rains exposed the unavailability of a proper drainage system in DHA, which is why alot of houses were left flooded for days, or maybe weeks.

Not really changing the market, but any sensible buyer would avoid the area because of such issues.

I think we should have a thread dedicated to the Real Estate and housing sector.

What does everyone think about the Real Estate sector in Pakistan?

Property prices have gone up manifold over the past 8 years. Do we have a bubble like places like Dubai and the US? What are your predictions for the future of this sector?

Any economists in here?

KARACHI: Emaar Pakistan is launching the sale of Alma Townhomes within Canyon Views with on-line registration for customers, commencing from May 25, 2008.

According to a press release Saturday, managing director Emaar Pakistan, Steve McCartt said, “Canyon Views is redefining the property sector of Pakistan with its focus on creating an integrated lifestyle neighbourhood”.

Canyon Views is an exclusive gated community with villas in a wide range of architectural styles and amenities such as retail outlets, community clubhouses, parks, schools and mosques.

http://epaper.dawn.com/Web/Article/2008/05/25/002/25_05_2008_002_001.jpg

http://epaper.dawn.com/Web/Article/2008/05/25/002/25_05_2008_002_001.jpg

Does anyone have pricing info for this project?

You felt the urge to quote all of the enormous ad?? :sly: You could have just used this >>>> ^^

^^ Exactly my thoughts.

my bad :(




I just wanna buy a purdy house!

my bad :(




I just wanna buy a purdy house!
Pehle apni shakal dekh lay aainay main

ISLAMABAD, June 11: Skilled construction workers get the highest wages in Islamabad and the unskilled the second highest among the capital cities in the country, according to the Economic Survey 2007-08.

It presents comparative figures of the wages earned by skilled and unskilled labour in construction industry in the federal and provincial capitals from the 1993 to 2007, showing steady increase in the wages but does not mention the purchasing power of the rupee which has been falling.

Islamabad is also known as the costliest city in the country.

A mason, counted among skilled labour, earned a daily wage of Rs525 in the federal capital in the outgoing financial year as compared to Rs450 in Karachi, Rs491 in Lahore, Rs442 in Peshawar and Rs450 in Quetta.

In the category of unskilled labourers, a labourer’s daily wage was Rs275 in Islamabad and Rs300 in Karachi.

CARPENTER: A carpenter’s current daily wage is Rs525 in Islamabad, Rs450 in Karachi, Rs388 in Lahore, Rs375 in Peshawar and Rs500 in Quetta.

LABOURER (Unskilled): A labourer’s daily wage in Karachi and Quetta is the highest of Rs300 followed by Islamabad where it is Rs275, in Lahore Rs250 and in Peshawar Rs200.

During the period 1999 to 2006, 11.33 million work opportunities were created. However, in 2006-07 only 0.70 million employment opportunities, of which the bulk was created in the rural areas (0.62 million) and only 0.08 million in the urban areas.

Thus indicating a weaker labour market situation, especially in the urban areas of Pakistan.

http://www.dawn.com/2008/06/12/nat19.htm

just want wanted to post n share.

Pehle apni shakal dekh lay aainay main

HAHAHA! :laugh: :hilarious

:rofl: :rofl: :rofl:

Pehle apni shakal dekh lay aainay main


:(



*mirror cracks*



*cries by the mirror*

^^ You mean *cries by the broken mirror*

^^ You mean *cries by the broken mirror*


STOP RUBBING IT IN MY FACE!




:cry:

ISLAMABAD, June 14: The National Assembly was on Saturday informed that the plan to construct one million housing units for federal government employees was being fine-tuned.

Minister for Housing and Works Rehmatullah Kakar told the house that the Pakistan Housing Authority was planning to provide flats or houses to the federal government employees from BPS-1 to 17 on retirement.

He said land measuring 15.6, 8.9 and 6.9 acres had been acquired in I-16/3, G-11/4 and G-10/2, respectively. He said 234 acres had also been identified in Kuri area of Zone-IV, but the Islamabad Capital Territory Zoning Regulations 1992 prohibited its utilisation for residential purposes. He said a summary had been made to the Cabinet Division seeking cabinet’s approval for relaxing the rules.

He said schemes would be launched for construction of one million housing units each year for citizens and government employees. Five marla scheme for homeless citizens in the rural areas would also be initiated, where government land is available.

Answering a question, Mr Kakar conceded that the outer walls of block 1 to 21 category-IV quarters in I-9/4 could not be whitewashed for the last ten years due to paucity of funds. He, however, said the flats in all these blocks had been painted internally. He said the outer walls would be painted on their turn during 2008-09 on availability of funds.

He said it was a fact that some allottees of D type quarters in F-6/1 had made encroachment by constructing additional rooms in the courtyard. He said notices had been issued to such allotees to demolish the encroached structures, otherwise the allotment would be cancelled.

The house was informed that the project for upgradation and strengthening of Quaid-i-Azam University would be completed in May 2011. He said Rs50 million were allocated for the project in 2007-08.

Academic blocks will be constructed with a covered area of 75,200 square feet. Two hostels for 424 students will be provided, while 21 residences for university staff will be constructed. Provision of sewage disposal and 1 KVA underground feeder will also be made under the project.

The house was told that various steps had been taken to enhance literacy rate at the primary level in the federal government schools. All the children between the age group 5-6 are given admission in class-1. He said 34 federal government junior model schools had been redesignated as Islamabad model schools in the first phase in order to bring them to the level of Islamabad model colleges. Qualified English teachers have been appointed in the primary level schools of Islamabad.

Federal Directorate of Education has introduced centralised annual examination for Class-V and VII. Most of the schools have been converted into English medium in order to meet the modern day requirements. Mathematics Olympiad is being held annually in the schools to help the students understand concepts of mathematics through various activities.

The education minister said free textbooks were being provided to the students up to class X. He said well-structured in-service teachers’ training setup was in place to impart training to all the teachers of FG schools and colleges.

The house was informed that at present there were 288 faculty teachers in the federal government universities who have obtained PhD degrees from foreign institutions. Responding to a question about the procedure for verification of the degrees, he said all universities usually internally scrutinised original degrees and certificates at the time of appointment as faculty member. It is only in case of doubt that the foreign degree awarding university is contacted for the purpose.

The house was told that the present number of primary, middle and higher secondary schools for boys and girls in Islamabad was 382. This included 209 primary schools, 53 middle and 120 higher secondary schools. The number of schools for boys is 152 while that of girls schools 230.

There are only 10 FG schools where transport facility is available to for the students. None of the principals of FG schools is provided with official transport.

He said no seats had been allocated for the students belonging to minorities for admission in the federal government educational institutions.

KHAIRPUR, June 18: The DCO has told the Sindh chief minister that around 3000 acres between Rohri Canal and Luqman have been acquired for a low cost housing scheme.

DCO Iqbal Memon was speaking during a meeting of the Chief Minister Syed Qaim Ali Shah with district administration officials in Darbar Hall.

He said plan to establish industrial zone and residential quarters on 177 acres near Mitho Mari were also complete while the CM had given approval to construction of a rest house near Kotdiji Fort.

The CM took notice of increased water-logging and salinity, particularly in industrial zone. He directed the chief engineer irrigation Sukkur Barrage to curb the problem.

The CM issued directives to shift general bus stop Khairpur to the old bus stop SRT near Therhi Railway Phatak. The meeting was attended by DPO Khairpur, Ghulam Nabi Memon, EDO Roads Syed Jinsar Ali Shah and heads of various departments.

Earlier, talking to different delegations he said drainage, provision of drinking water, development works, sound law and order situation, employment to jobless were the priorities of the government.

Talking to delegation of Anjuman-e-Tajiran led by its President Qutbuddin Shaikh at Mohalla Mir Ali Bazaar, the Chief Minister assured to solve the problems of city.

He said soon funds will be issued for making the filter plant functional to provide clean drinking water to citizens. Delegates complained to the CM that 10-12 hours long loadshedding was against the official schedule of six hours due to which trade was being badly affected.

They said trade had also been affected due to the absence of stops of many trains passing the Khairpur station. The CM assured to control unscheduled loadshedding.

He said efforts will be taken to restore stop of various passenger trains at Khairpur railway station. He said two overhead bridges over Therhi railway Phatak and Shah Hussain Chowk would soon be constructed to mitigate peoples’ problem.

http://www.dawn.com/2008/06/19/nat39.htm

http://epaper.dawn.com/Web/Article/2008/06/23/152/23_06_2008_152_004.jpg

i want to sell a house in rawalpindi. any advice?

should i sell it now or wait a while?

KARACHI, July 13: The Sindh government has identified five locations in the metropolis to acquire 525 acres for a low-cost housing project.

Located in Mauripur, Keamari, Bin Qasim and Gadap towns, these are part of the 100 sites proposed for acquiring land in 22 districts in the province so that work on the People’s Housing Programme could be initiated.

The Sindh government has also directed the Malir Development Authority to furnish land under its jurisdiction for construction of houses to be allotted to the low income groups under the programme as per advice of the federal government. A recently held meeting, presided over by Chief Secretary Fazal-ur-Rehman, asked the board of revenue and other stake-holders to expedite the process in this connection.

The proposed land comprised 100 acres in Keamari Town, 25 acres in Mauripur, 100 acres in Bin Qasim Town, 100 acres and 200 acres in Gadap Town, said Sindh Minister for Katchi Abadis Rafique Engineer. The low-cost housing project was one of the promises made during the election campaign by Benazir Bhutto before her assassination.

Sindh Chief Minister Syed Qaim Ali Shah, being a senior leader of the Pakistan People’s Party, took the initiative to give practical shape to the party’s founding slogan of providing shelter to the poor, he said.

In the budget 2008-09, the government announced to build 100,000 housing units for the poor, he said, adding that these would be in addition to the 10 villages, which would be selected for building housing units in each district.

Rafique Engineer said the government would arrange transfer title of the new houses along with land to the inhabitants, which could be mortgaged for acquiring loans from banks to get quality seeds and fertiliser to increase the agriculture output.

He said arrangements were also being made to acquire services of the HBFC and Micro Finance Bank to provide loan for construction of the houses to the deserving people, which would be recovered in easy instalments.

He said the revenue department had been asked to process the land and transfer it to the DCOs for implementation of the programme in towns and villages. He claimed that the government was keen to fulfil its promise by providing shelter to the poor. He said that a steering committee on the People’s Housing Programme was already working to expedite the process. Besides, it has been learnt that the government is mulling over to set up a high-powered housing and katchi abadis commission under the chief minister by restructuring the existing Sindh Katchi Abadis Authority and renaming it as Sindh Housing and Katchi Abadis Authority through some amendments being made to its Act 1987.

After its formation, all the existing development authorities, including MDA, LDA and HDA, would be placed under the Sindh Housing and Katchi Abadis Authority.

RAWALPINDI: Minister for Housing and Construction Rehmat Ullah Kakar said on Sunday the government had decided to launch housing projects for newspaper employees of Islamabad and Rawalpindi.

Expressing his views at the Rawalpindi Press Club, Kakar said: “In the recent inflation-stricken era, it is impossible to live in a rented house. So, the federal government has decided to launch housing projects for newspaper employees of the twin cities in the first phase and it will be expanded to other cities of the country later.”

Talks are underway with famous Korean and Japanese construction firms in order to ensure implementation of the housing projects and construction of flats for journalists, he added. The minister said talks were also underway for providing loans to newspaper employees on easy terms so that they could get a better place of their own to live.

He added that lands for residential schemes would be bought while the projects would be finalised after consultations with the All Pakistan Newspapers Employees Confederation (Apnec).

He termed newspaper employees the backbone of the national economy and said the government would take every step to facilitate them. The minister praised the Chairman Apnec Rawalpindi/Islamabad, Ikram Bukhari, for his efforts and struggle to pass on the idea of the housing scheme.

On the occasion, the Apnec central chairman thanked the minister for announcing the housing scheme for newspaper employees and demanded the implementation of the 7th

Project for journalists? WTF?

"He termed newspaper employees the backbone of the national economy"

WTF!? :weird:

The Real State / Property values have gone down 50% in Karachi. Dont know abt other cities.

The major cause is unstability in the country.

That's great news.

"He termed newspaper employees the backbone of the national economy"

WTF!? :weird:

hahahahahaha, so true

The Real State / Property values have gone down 50% in Karachi. Dont know abt other cities.

The major cause is unstability in the country.

time to invest!!!!

The Real State / Property values have gone down 50% in Karachi. Dont know abt other cities.

The major cause is unstability in the country.

I agree, it was going strong, but its been gradually going down, bad news for us, we are trying to sell one of our apartments and the price is extremely low right now, and at the same time the Canadian Dollar is rising every week.

I agree, it was going strong, but its been gradually going down, bad news for us, we are trying to sell one of our apartments and the price is extremely low right now, and at the same time the Canadian Dollar is rising every week.
You should've sold when the price was high...

KARACHI, July 15: Draft rules for the financial product – Real Estate Investment Trust (REIT) -- were launched in July 2007. The purpose was to provide investors an opportunity to invest in real estate, through a pooled investment vehicle, managed professionally by fund managers (licensed REIT Management Companies).

SECP noted in a statement issued on Tuesday that the real estate valuation (i.e. the lack of transparency) was a major bottleneck in the real estate sector in the country.

The regulator said that a strong REIT implementation team, which was multi-disciplinary and included a civil engineer and a real estate broker, had been built.

To study REIT licensing and evaluation, SECP said it had selected Malaysia as a relevant jurisdiction. Five officers of the commission were sent on a study tour to Malaysia in June to understand the problems and issues faced by the Securities Commission Malaysia in monitoring and regulation of Malaysian REITs.

A number of meetings were held with the Malaysian regulator and with the Institute of Surveyors to get a first hand knowledge of the REIT market in Malaysia.

A second group of five officers was leaving for Malaysia on Friday to visit valuers and REIT management companies operating in Malaysia.

Both the visits have been funded by a World Bank grant.

Islamabad

Ministry of Housing & Works has acquired 32 acres of land in Sectors G-10/2, G-11/3 and I-16/3 to start construction work on apartments/flats for low-paid federal government employees.

According to official sources, two categories of flats/apartments, measuring 900 and 700 square feet, would be constructed for FG employees in these sectors.

Besides, sources said that acquisition of 234 acres of land at Kuri Road is in the final stages where flats would be constructed for low-paid (Grade 1-16) FG employees while houses would be constructed for occupational groups of FG employees.

Pakistan Housing authority (PHA) has received the Expression of Interest (EoI) from interested well-reputed national and international firms for the development of mega housing schemes in and around Islamabad.

They said that such kinds of housing schemes for federal government employees and general public under Prime Minister Housing Programme would also be initiated in all the four provincial headquarters to meet the acute housing shortage in the country. Sufficient government land is available in these areas for initiating housing projects while modalities are being finalised to acquire more land for the project, they added.

Sources said that PHA has recently been tasked to undertake housing schemes for the officers of Federally Constituted Occupation Groups and for low-paid employees of federal government.

The FG employees in the country in general and in the federal capital in particular are facing a lot of problems due to the shortage of government houses and there is a dire need to launch mega housing schemes for them on war footing, they said.

no i want to sell my house...the market is so down now and there are no buyers :ohno:

The market is dirt cheap in the US (they are doing buy 1 get 1 free deals here in northern Virginia) and the market is also cheap in Pakistan from the sounds of it. Why couldn't I be done with college so I could buy a house? It seems by the time I'm in the market for a house, prices are going to be astronomically high.

Yeah, if anyone has money, he should buy NOW.

I doubt people have any sense for market value. Place where my parents come from still don't know what is happening. And the prices are still high.

The market is dirt cheap in the US (they are doing buy 1 get 1 free deals here in northern Virginia) and the market is also cheap in Pakistan from the sounds of it. Why couldn't I be done with college so I could buy a house? It seems by the time I'm in the market for a house, prices are going to be astronomically high.

Please elaborate a bit more on this "Buy One Get One Free" scheme.

You buy a house and you get a naked women lying on the bed for free.

Anybody here who understands the Pakistani Real Estate market.

When do you think residential prices will rise again and get to reasonable levels?

And, what is the long term trend/trajectory? Was it just a bubble that burst?

And, WHY THE HELL ARE PRICES SO LOW RIGHT NOW?!?! It cant be the political uncertainty alone.

Anybody here who understands the Pakistani Real Estate market.

When do you think residential prices will rise again and get to reasonable levels?

And, what is the long term trend/trajectory? Was it just a bubble that burst?

And, WHY THE HELL ARE PRICES SO LOW RIGHT NOW?!?! It cant be the political uncertainty alone.
You just called it a bubble yourself, and then you go on and ask why did it burst?!

Anybody here who understands the Pakistani Real Estate market.

When do you think residential prices will rise again and get to reasonable levels?

And, what is the long term trend/trajectory? Was it just a bubble that burst?

And, WHY THE HELL ARE PRICES SO LOW RIGHT NOW?!?! It cant be the political uncertainty alone.

I'm no expert in real estate but I think the prevailing economic conditions must be a driving factor in this also. The rupee is at an alltime low, reserves are depleting faster then Umais's sperm supply (due to the drought he is witnessing these days) the import deficit is totally out of control and then to add fuel to the fire, we have an incompetent and inept political setup who could care less about these factors and are instead concerned with trivial issues such as the re-instatement of judges and Musharraf.

Things look really bleak in Pakistan. It is absolutely amazing how they are pissing away the groundwork laid down by Shaukat Aziz in the past 7 years!

I might sound like an idiot saying this but I think foreign currency account closures are just a matter of time now! Anyone else here thinking of pulling out of the Pakistani foriegn currency market?

Who is Umais?

And yeah, things are looking bleak.

Who is Umais?

And yeah, things are looking bleak.

:laugh:


You horny toad you!

Real estate business in twin cities not lucrative (http://www.brecorder.com/index.php?id=774570&currPageNo=1&query=&search=&term=&supDate=)
RAJA AQEEL

ISLAMABAD (July 23 2008): The investors are hesitant to put their money in real estate business in twin cities as it is not so lucrative as it was two to three years back, revealed some property dealers of Rawalpindi and Islamabad on Tuesday.

Buying and selling of land along with residential and commercial buildings is almost stagnant with the exception of G and I sectors in Islamabad and Defence, Sawan Gardens and PWD Housing societies in Rawalpindi, said a Blue Area property dealer.

Counting the reason of this stagnation, he said when the business was at its peak, property transactions were made over and above its real market value and that price was artificial eg, a plot with its real market value of one million was bought and sold at Rs two million adding that the seller definitely would have made profit but the buyer is unable to dispose it at the same price now.

Foreign investment is not coming due to political instability and law and order situation, which increases the demand of residential houses and also commercial building for firms to set up their offices.

The skyrocketing price-hike has made lift difficult for common man. Now he is unable to think of buying a plot to construct his house. Two years back there was a trend of farmhouses and land developers bought huge chunks of land around Islamabad for this purpose.

When CDA allotted some two and half acres farms to victims of Islamabad, they sold that land to people who were interested in constructing farmhouses but after the Supreme Court decision that no one is allowed to construct houses on the land allotted by CDA for developing of farms, people are hesitant to make such huge investment without surety.

Fake housing societies scam also hampered the business as people have lost interest in making investment in private sector projects. They prefer to CDA announced sector, which don't have the capacity to meet the housing needs of the people who want to built house in the capital city, he opined. In Rawalpindi the prices of land in some areas have gone down.

Copyright Business Recorder, 2008

EDIT

Ooga I disagree that the govt. is not taking note of the economic situation, they are, only PML-N and Ganja Sharif is the one with a two point agenda of Judges and Musharraf, they are the only two point party hell bent on personal revenge. Other than that, the govt. is paying attention to the economic crisis, this extremely turbulent economic situation will start to calm down some time next year in my opinion. I think this perception too is just created by the media. The economic situation, I am glad, is atleast one of the few things they are paying attention to.

Sucks for me cuz I wanted to liquidate some property right now as I need some money :(

http://www.powerhomebiz.com/News/072008/emyproperty-pakistan.htm

ISLAMABAD: Federal Minister for Housing and Works, Rehmatullah Kakar Tuesday said that upcoming mega housing projects would open unprecedented investment opportunities for the local and foreign construction companies besides generating tremendous socio-economic activities in the country.
He said this while talking to a delegation from Malaysian NAMFATT Corporation headed by its Chief Executive David Chan currently on a visit to Pakistan.
The Minister said that government is launching mega housing projects constructing one million houses annually for the poor, needy and shelterless under ‘Prime Minister Houses for All’ programme.
He said that Pakistan Housing Authority (PHA) would start six housing pilot projects in Islamabad, Lahore, Karachi, Quetta, Multan and Larkana within a week to kick off work on construction of one million housing project.
Kakar said that the Malaysian has made tremendous socio-economic development in a short span of time and government would welcome Malaysian investment in the upcoming housing activities with a view to learn a lot from each other’s experiences in the housing and construction fields.
Chief Executive of NAMFATT briefed the Minister about his company’s involvement in mega housing projects in various countries including construction of 6500 affordable apartments in Thailand.

the prices will go up again eventually, probably wont be inflated like they were earlier but its inevitable that they will eventually go up. and to disagree with ooga a bit, the forex reserves will build up again along with the foreign currency. the economy is growing but the super idiot duo of zardari and ganja are the cause for too much political turmoil.

the prices will go up again eventually, probably wont be inflated like they were earlier but its inevitable that they will eventually go up. and to disagree with ooga a bit, the forex reserves will build up again along with the foreign currency. the economy is growing but the super idiot duo of zardari and ganja are the cause for too much political turmoil.



DISAGREE WITH BOOGA? HOW DARE YOU WOMAN! >(







("superidiot duo" :laugh:)

http://thenews.com.pk/daily_detail.asp?id=128682

Economic turmoil cues fall in property prices
Friday, August 22, 2008
By Faryal Najeeb

KARACHI: Property prices have crashed by up to 35 per cent in all major cities over the past two to three months due to a tremulous financial market and investments being shifted to the United Arab Emirates (UAE) real estate sector.

Experts and dealers in the local estate markets revealed that Pakistan is suffering from its worst ever property crisis. A 500 square yard plot in one part of the Defence Housing Authority (DHA) initially priced at Rs12.5 million was sold for a mere eight million rupees.

One landowner lamented that his property in Phase Seven had been evaluated at Rs17.5 million just eight months ago, but when he had to sell it last week, potential buyers were not ready to pay more than Rs13 million. The property was eventually sold for Rs13.5 million.

Undeveloped plots have been hit the most, followed by commercial projects and high-rise buildings and complexes. Properties in DHA have suffered the worst hit, although the prices of smaller plots measuring 80 square yards and 120 square yards in Gulistan-e-Jauhar and Gulshan-e-Iqbal have dipped by 25 to 30 per cent.

Munir Sultan, Vice-President the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) sub-committee for Housing and Construction, explained that the reason behind the downfall was the turbulent financial market of the country.

He said that some investors of the stock exchanges trade in futures shares where they ‘borrow’ or ‘pledge’ shares worth millions against either bank guarantee or equivalent shares of another company. These shares become the immediate asset of the stock exchange investor, but the borrowed amount has to be paid to the broker within the stipulated time. If not, the shareholder would become a defaulter.

“When the Karachi Stock Exchange fell, they (investors) sold their properties at throwaway prices to pay for the shares that they had pledged to avoid becoming defaulters,” stated Sultan.

He added that over 250 plots were sold in such a manner, leading to land assets sinking in value.

In Lahore, Islamabad, and Rawalpindi, the real estate business has also been slow, especially over the past one-and-a-half years. Here, the key reason for this has been the shift of investments to the UAE.

Faisal Adil, a property consultant, deals in both buying and selling of properties. Adil said that right now, the market is going through a low period, leading to a higher number of those clients interested in selling. According to him, the Karachi real estate market continues to remain the most affected. Lahore comes next, followed by Islamabad.

High-rise building projects had been affected the most, especially as a disrupted power supply and water problems were discouraging prospective investors.

“Karachi citizens may be able to survive the apartment life, but in Islamabad and Lahore, bungalows and small buildings with one or two floors are more popular than skyscrapers and large complexes,” said Adil.

Both Faisal Adil and Munir Sultan felt that the booming UAE real estate market is equally responsible for the downfall. According to Sultan, over 3,000 local builders have transferred their money to the UAE. He explained that this was due to instability and uncertainty in the country, and low incentives to the housing and construction industry.

He further said that Pakistan still has a high rate of interest on house purchase.

“Undocumented economy continues to be a problem when ownership of a land comes under question.”

Sultan suggested that the only way to improve the situation was to provide better incentives to builders in Pakistan so that those having taken flight to other countries could return and reinvest.

Adil had similar views. He said that since the biggest threat was the Dubai market, “If the government provides lucrative offers, investors are likely to return, which is essential, as the housing industry provides the highest number of jobs and greatly enhances the economy.”

http://www.thenews.com.pk/daily_detail.asp?id=131211

We have an inflated property market. I hope it crashes and at least half of the investors go bankcrupt and commit suicide.

We have an inflated property market. I hope it crashes and at least half of the investors go bankcrupt and commit suicide.

Thankyou for those inspiring words. :sly:



On a more serious note, JUST WHEN I WAS ABOUT TO LIQUIDATE MY FUCKING PROPERTY HOLDINGS, THIS SHIT HAPPENS! :gaah:

We're trying to sell ours too, but its way down right now.

We have an inflated property market. I hope it crashes and at least half of the investors go bankcrupt and commit suicide.

I agree. Prices are definitely inflated. Especially in ISB! I'll read the article in a while.

they became inflated.

right now, they are no longer inflated. i would argue that they are undervalued.

for a house we were trying to sell, we wouldnt even get as much as we were getting 6 years ago! that surely doesnt represent real value.

its just a slump and property is undervalued right now.

It's undervalued??? You kidding???

It's grossly overvalued due to the money actually not existing.

There is plenty of money. The money supply has ballooned and increased rapidly for many years.

Do you really think the real prices of property right now is the same as it was 5 years ago?

Do you really think the amount of wealth today is the same as 5 years ago?

Do you really think the money supply today is the same as 5 years ago?

It is just a temporary crash. During crashes, markets usually end up lower than their real value.

Anything that goes up due to speculation and not purely demand and supply is overpriced IMO.

The speculation caused the property to go over its real value.

But the crash caused the property to go under its real value.

The real value is somewhere in between the slump and the peak prices.

Lalazur - Rawalpindi

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Thanks. But a lot of stuff in it is usually outdated. You can often find them talking about dead projects that we've long are dead on SSC.

KARACHI, Sept 17: The pilot project of Shaheed Benazir Bhutto low-cost houses in Ketti Bunder, district Thatta, has been completed with the UNDP assistance and ready for inhabitation, it was reliably learnt on Wednesday.

Under the project 200 cyclone-proof houses have been built with energy-efficient technology, developed by the UNDP, which keeps the room temperature relatively low during summer. The estimated cost of each unit is Rs200,000.

The allotment documents and possession of houses would be handed over to the allottees within a month at a ceremony where President Asif Ali Zardari, who is also co-chairman of the Pakistan People’s Party, had been requested to be chief guest, informed sources said.

The pilot project is a step forward towards fulfilment of the party’s agenda of providing shelter to everyone. In the budget, Rs16 million has been provided for this purpose.

Chief Minister Syed Qaim Ali Shah had earlier pledged that 100,000 housing units would be built for the poor and homeless people in Sindh. The government has already selected sites in Karachi, Hyderabad, Larkana and other major cities for setting up such low-cost houses.

Sindh Chief Secretary Fazal-ur-Rehman told Dawn that the cyclone-proof units built in Thatta pilot project were specifically designed to bear the uncertainty of weather along the sea.

Besides, the government was working on village housing projects. Under the scheme, 10 under-developed villages will be selected in each district and 10 poorest persons living in those villages will be identified through transparent means by the DCOs, in consultation with relevant nazims and other notables, for the allotment of low-cost housing units.

Only the government registered and duly sanctioned villages, which are not built on private lands, will be considered for the development project.

According to Katchi Abadis Minister Rafique Engineer, the selected families will be provided construction material for two-room houses with veranda, kitchen and washroom. The villagers will be asked to construct houses on a self-help basis, while the government will provide them technical guidance, he added.—Staff Reporter

ISLAMABAD, Sept 23: The Ministry of Housing and Works on Tuesday signed a memorandum of understanding with two foreign companies to build houses and flats in major cities of the country.

The two foreign companies, German Impro and Canadian Star Development Corporation, would construct 200,000 residential units under the Prime Minister’s Housing Scheme.

Under the agreement, both the companies would invest $500 million in the first phase and intend to invest two billion euros.

The Pakistan Housing Authority (PHA) Managing Director, Raja Mohammad Abbas and chief executives of the German and Canadian companies signed the MoU.

“There are a lot of opportunities for the local and foreign investors in the upcoming mega housing projects. The government will encourage and facilitate them to the maximum,” said Minister for Housing and Works, Rahmatullah Kakar who witnessed the ceremony.

Construction of a million houses annually under the housing programme should provide the shelter to the government servants and public, the minister said. Mr Kakar said the signing of MoUs with the German and Canadian firms would benefit the country to learn from their experiences in the vital sector of economy.

Balloting for G-14 plots: Meanwhile, in a separate ceremony the housing minister held balloting of 997 plots of different categories in G-14 Sector at the Federal Government Employees Housing Foundation.

Under the balloting, 125 plots were allotted of category-I for grade 20-22 officials, 153 plots of category-II for grade 18-19 officials, 215 plots of category-III for grade 16-17 employees, 185 plots of category-IV for grade 11-15 employees and 319 plots of category-V for grade 1-10 government servants.

Speaking on the occasion, Mr Kakar said that the government would activate the Federal Government Employees Housing Foundation (FGEHF) to launch more schemes for the federal government employees and announced increase in journalist quota from three to 5 per cent, which would include the technical employees of the newspapers.

Regarding the issue of G-6 sector, the minister said the government would provide them accommodation at various places to mitigate the shelter problem of retiring employees.

Earlier, FGEHF Director General Shahid Hameed briefed the minister about the performance of the foundation established in 1989. He informed the minister that the main objective of the foundation was to provide shelter to serving and retired employees, their dependents and other specified groups.

Mr Hameed said that FGEHF had so far launched 11 housing schemes in Islamabad, Karachi and Peshawar besides construction of 480 apartments in Karachi.

The two foreign companies, German Impro and Canadian Star Development Corporation,

High certainty that both companies are fakes.

Search of "Canadian Star Development Corporation" and "Star Development Corporation" shows no results in local business directories. A broader registry search also shows nothing.

therz so much happenin in karachi...... evry day therz a new tower n most of em on university road....
they look awsome in rendering but still amazingly cheap....
as low as £80 per month...... im finking of gettin 1...... I've neva been to karachi city.... cn sum1 giv an idea of which tower is worth? specially some info on university road...... on map it duzen look that far frm city center

KARACHI, Oct 25: Property prices have further declined by at least 15-30 per cent this year as investors have been on the sidelines since 2005 owing to uncertain political and economic conditions in the country.

Even the formation of a new government after the February general elections and the PPP-MQM alliance in Sindh has failed to woo the investors. As a result, there has been no impact on the property market after these developments. Real estate dealers had estimated price hike by 20-30 per cent after the PPP-MQM alliance.

Real estate dealers said that investors were more interested in ‘playing with the dollar’ instead of taking risk in the property.

There are also reports that investors have been trying their luck in Malaysia and some other Islamic countries rather than property markets of Dubai and Pakistan.

Giving a brief review of prices, Owner of Pak Estate at Clifton Khan Zubair Shaheen said that a 500-yard plot in some phases of DHA is now priced at Rs7.5 million and the market lacks any enthusiasm among the buyers despite massive fall in prices. The same plot was available at Rs10 million in Dec 2007, falling to Rs8.5 million ahead of election. He added that even buyers are not ready to lift it at Rs7 million these days.

He said that a 1,000 yards plot was available at Rs18 million in December 2007. Its price had fallen to Rs15 million ahead of election and further fell to Rs12 million.

Khan said that some investors had been active in Malaysia and Oman after Dubai. He said only eight to 10 deals of property were taking place in DHA office as compared to over 100 deals in the boom period.

Chairman Clifton-Defense Real Estate Association Arif Malik was of the view that the price of property has declined by 30-40 per cent in the DHA, especially from January till now.

“Investors are busy in investing in dollar rather than property,” he said adding that there were hardly any investors interested in real estate. He also said that some investors, after making windfall from Dubai property boom, are now active in Malaysia.

“Property transactions may remain at the bottom as much depends on the law and order situation, political and economic uncertainty and unfortunately the situation has not improved yet,” Malik said.

Owner of Parekh Estate Abdul Wahab Parekh said that buyers of property in Karachi demand further cut in prices from the sellers despite 20-30 per cent fall in the rates.

Only genuine purchase and sales are taking place as investors have been cautious to invest in the property business. However, he said that some clever buyers are buying the property as they think it is the right time to purchase when rates have plunged sharply.

He said that a new single storey 1000-yard bungalow in Phase V, VI and VII is priced between Rs50-55 million as compared to Rs60-65 million in January this year. A double-storey 500-yard bungalow sells at Rs25 million as compared to Rs30-35 million. An old double storey bungalow is available at Rs35 million as compared to Rs40-45 million in January this year.

He said that property market may remain dull in view of reports of financial crisis in Pakistan and stock market crash.

Parekh recalled that the people and investors had made massive investments in booming real estate business in DHA and other areas like Gulistan-e- Jauhar following huge influx of home remittances during the period 2001-2005, which had pushed the property rates up by four to six times.

The imposition of two per cent capital value tax (CVT) two years back had also discouraged the investors to operate in the property market.

Commenting on reports of upward revision in property valuation table to increase the revenue, he said it is not the right time but a slight increase of five to 10 per cent may not make any negative impact on the market. However, a sharp increase would encourage sale and purchase of real estate on power of attorney in order to avoid tax.

Owner of Johar Associates in Gulistan-e-Jauhar, Abdul Wahab said that a 240-yard plot in Block 2 and 3 is now priced between Rs5.5-5.7 million as compared to Rs6.5 million in January this year. The price of 400 yards plot in the same blocks is, however, between Rs7.5-8 million as compared to Rs9.5-10 million in January 2008.

He said that sale and purchase had been very negligible owing to uncertain political and economic situation in the country in the last 10 months. He said the impact of financial crisis in the world will be slightly felt in the country’s property markets in future.

He said investors still feel that Pakistan’s property market is not safe for investment. Many of the investors are trying to pull back their investment from Dubai and are waiting for the economic and political harmony so that they could invest in their country.

He was of the view that increase in property valuation table would further depress the sentiments of the investors and general public, who are already holding cash and were waiting for an appropriate time to invest in real estate.

^^ :ohno:

That's good news. I hate bubbles.

1000 sq yds in DHA for 12 million? Wish I was in a position to buy, no better time than to buy right now. I don't think prices will be that low ever again.

People liquidating bank savings to invest in property; FPCCI body on housing and construction SVP Munir Sultan says rates to remain stable and hike after March; realtors say investors fearing financial meltdown in UAE coming back home

Sunday, November 16, 2008
By Faryal Najeeb

KARACHI: Local builders in Pakistan are having a field day as the newly introduced projects all over Pakistan have received tremendous positive response marking the first signs of real estate sector revival in the country.

Real estate agents and builders said that though prices continue to remain low owing to recession - the demand for properties is increasing as investors are coming back home after trying their luck in UAE.

Senior Vice President of FPCCI Sub committee on Housing and Construction, Munir Sultan predicted that the prices of properties would remain stable for the time being and would only hike after March.

Estate agents and experts informed that the buyers of these properties are investors having money stashed in local and foreign banks and following the global credit crunch feared for their savings.

Sultan explained: “These are ordinary well to-do people of our society who liquidated their bank savings and opted for safe heaven investment in real estate. Properties are sound investments as no one can steal them from you and more importantly because regardless of the political or economical conditions, land assets do eventually gain value with time.”

He further said that Pakistan urgently needs to work on its investors’ confidence and the government should take steps to clear the country of its black economy that is working parallel to the legal system.

He advised the government to introduce a law similar to UAE’s Escrow account concept, which provides investor’s peace of mind over their investments and helps reduce fraud cases.

However, Sultan went on to inform that DHA Lahore, Islamabad and Karachi would not witness any changes both in terms of revival and price fluctuations as “the demands in these areas were artificially created particularly by stock exchange investors”.

“These investors purchased plots in great numbers and artificially pushed up the prices and therefore they are not accounted for in the overall country’s real estate movements. DHA properties investment rules are also quite different from the rest of the country,” he continued.

In Karachi, residential projects with ground floor commercial shops in scheme 33, near Super Highway are the most well received ones according to most estate agents in the localities of PECHS, Gulistan e Jauhar and Gulshan e Iqbal.

Abu Masood Khan of Khan Estate Agency and Ashok of Ashok Builders informed of similar results in Hyderabad. They said that there has been a hike in residential projects and shopping complexes in their city.

“The idea of commercial projects has especially gained momentum and there are increasing number of shopping plazas that have been introduced” Ashok said. Latifabad, Heerabad, Saddar and the area around Isra University have witnessed the maximum projects, Khan shared.

Similarly, Basit Mahmood, a project director of Globiz in Lahore informed that his city is also experiencing a revived interest in empty plots and constructed projects and real estate related advertisements have popped up across the city’s billboard, cable televisions and newspapers.

Meanwhile, an expert dealing with Gwadar expressed that the place continues to remain in doldrums and so far no changes have been witnessed there.

“Let us hope the investment fever that is spreading in the other parts of the country also reaches here to save us from disaster too” he added.

http://www.thenews.com.pk/daily_detail.asp?id=146964

Global financial crunch hits real estate sector

Sunday, December 28, 2008
By Faryal Najeeb

KARACHI: Year 2008 has proved to be a rather rollercoaster ride for the real estate sector.

It started off dismally in January, following massive flight of investment after former premier Benazir Bhutto’s assassination and then underwent global financial crunch.

However, it ended on a positive note as many new projects for the middle income group were introduced.

Meanwhile, local investors, though severely wounded by heavy losses, also returned to Pakistani market from United Arab Emirates by October. Nevertheless, market experts were of the opinion that the year could not be considered positive for the sector as the damage done was far more than what was recovered in the past two months.

“Interestingly, though the commencement of the year promised little following the tragic incident on December 27, 2007 and it seemed to be the worst period in the history of Pakistan, average price of properties remained higher than what they had been when real estate recession started back in 2005,” stated Head of Real Estate Research at PakrealEstate.com, Shahbaz Mukhtar. Mukhtar said that property prices in Lahore, Karachi, Islamabad and Rawalpindi were in fact 20 to 25 per cent higher compared to 2005 when the real estate sector recorded its first downward slide. Citing examples, he shared that in 2005, a 500sq yard plot in F7 area of Islamabad cost approximately Rs30 million whereas in 2008 the same was estimated at around Rs45 million.

Mukhtar went on to say that apart from natural appreciation over time, the development that took place in an area also mattered greatly for property evaluation.

He gave the example of DHA phase VIII Karachi where a little development over months led to prices actually dipping in 2008. Going over a period of five years, Mukhtar said that a 500 square yard plot in phase VIII cost Rs1-1.5 million in 2002, which soared to Rs10-12 million at its peak in 2005.

He said as the DHA failed to maintain the development progress, today the same property is valued at Rs6-7 million only. The real estate researcher also enunciated the Islamabad rental market stood humble in 2008 as the demand by foreigners reduced as most moved away to the ‘Diplomatic Enclave’ established for them.

He said acts of terrorism in the year had also compelled many of them to move away from the country leaving the houses empty behind them.

“The rupee-dollar parity also affected the rental market of Islamabad as the rents were in fact decided in dollars only,” he elucidated.

On the other hand, FPCCI Sub Committee on Housing and Construction Vice President Munir Sultan voiced that the global financial crunch which had been the worst in over hundred years had led to a massive decline in the housing and construction sector of Pakistan along with other countries in the world.

He articulated initially rising prices of steel and cement had led to a sluggish period in the construction sector and then the liquidity crunch affected the sector in the 3rd quarter of the financial year.

Fourth quarters onwards, prices begin to fall and a plethora of housing projects were also launched for the middle income group. As the UAE market crashed and investors returned heavily defeated with losses to Pakistan, many small and big developers launched new schemes all over the country.

According to the experts, the responses to these projects have been tremendous mainly because earlier the ventures which were being announced in Pakistan were for the elite class which is less than 2 per cent of the society and these housing developments were finally within the budget of the popular class of the society.

Sultan expressed housing projects in Karachi, Islamabad, Lahore, Hyderabad, Rawalpindi, Sialkot and Faisalabad proved to be massive hits and got excellent response from the buyers. During the second quarter, Real Estate Investment Trusts (REITs) were also introduced in Pakistan and many hoped that finally the real estate sector of the country would be better documented than at present.

However, no project ever got initiated in this regards and flaws in the government’s laws also led to REITs failure. In the opinion of the experts, the future also does not seem to cast any light on potential projects involving REITs.

source: http://thenews.jang.com.pk/daily_detail.asp?id=154165

DHA LAHORE MARKET BEHAVIOUR DURING 2008. The graph indicates how prices have gone extremely low in dec 08. Excellent work by the magazine in their annual issue.

http://propertystandard.com.pk/latest/pages/07.htm

Current Lahore Property rates with their location and Status

http://propertystandard.com.pk/10thissue/pages/05.html

ISLAMABAD, Apr 22 (APP): Pakistan Housing Foundation (PHF) would launch nine schemes for low-income groups and one million new houses and flats would be built. “It is an outstanding achievement of the present government which is going to complete 10-residential blocks at I-11 at the end of June this year which were earlier scheduled to complete in 2001”, Housing Minister Rehmatullah Kakar said while unveiling the details of the housing schemes in a press conference. The construction work at all the housing schemes will be started within two months, he added.

The Minister said, in Bara Koi road Simli Dam, Pakistan Housing Scheme will start sixth building projects which will be completed within two years.

At the place, there will be 2200 furnished flats will be sold to the government servants. Applications for the flats will be received after advertisements in daily newspapers and different TV channels,he said.

“The cost of the each flat will be Rs. 1.2 million, a rare example of the cheapest rate for the housing project in the recent times”, the Minister remarked, adding, the Prime Minister had ordered the CDA to prepare a feasibility report in this regard within a month.

In Gulraiz Colony, 3500 flats will be built and agreement has signed with Buildtack Company for their construction. The same company will build 1000 flats on 15 acres land at I-16.

In Karachi, near Baqai University, 10,000 flats will be built on 160 acre land. People’s Housing Scheme of Sindh is cooperating with government of Pakistan for launching the project.

As many as 1835 flats will be built at Barah Koh Road and towards Murree road, after passing four Kilometers, 4,000 flats will also be constructed.

According to Prime Minister’s directives 40,000 flats will be built in G-6, after demolishing old quarters.

In G-13, 1500 flats will be built while in G-11/4, 18 blocks have been constructed out of a total of 84 blocks while the rest will soon be completed. Ownership letters have been sent to the owners of 18 blocks.

Replying to a question about housing schemes for the people of other two provinces of the country, the Minister said Punjab and NWFP had refused to provide land to the federal project; however this Housing Scheme also covers the housing project of Prime Minister which is launched earlier in the country.

He lauded the provincial government of Balochistan which provided the land without cost to the federal government. He vowed to start such housing projects also in the small cities of the country.

http://www.app.com.pk/en_/index.php?option=com_content&task=view&id=74274&Itemid=2

THE real estate market is showing signs of gradual recovery on the back of stabilising macroeconomic fundamentals.

“The stabilising national economy has spawned strong hopes of an early turnaround in the so far dull real estate market over a period of next one to two years,” an investor said.

He claimed that there are already signs of modest activity in the market but added the market will pick up real quick pace only in 2011.

“If you are expecting a boom like the one we saw in the post 9/11 period, that will not happen in the near term. Such booms happen once in decades and require a massive socio-economic change to take place. But I can bet that the real estate market is ready to pick up from next year provided the economy continues on the path of stabilisation,” a real estate consultant in Lahore told Dawn last week.

Chunk of billions of dollars that flowed into the country in the post-9/11 years are believed to have been channeled into real estate, stocks and other speculative investments creating a boom in these markets during the mid 2000s. Only a small fraction of that money had gone into industry or productive sectors.

After hitting the rock bottom, the real estate and property prices in most urban areas, according to a builder, are stable for some time now mainly because the sellers are not prepared to lower them any further.

“Most investors who took positions in the market just before it had busted and prices hit rock bottom are waiting for good times to come,” the builder said. In addition, he added, some investors had suffered huge losses on their investments in the Dubai property market and are not really ready to incur additional losses at home. “As far as small investors are concerned they are stuck in it badly and are finding it hard to get out of it,” he said.

The optimistic outlook on the real estate is based on the assumption that the economy is going to improve over the next one year and growth to pick pace from financial year 2011.

“The real estate business is closely linked to economic growth. The faster the pace of economic growth, the more activity in the property market,” a developer, who did not want to identify himself for personal reasons, said.

He said the interest rates come down and stock markets go up when the economy is growing. That is always an ideal condition for the property business to flourish, he added. Most investors and realtors this reporter spoke to last week believe that economic growth will gather huge momentum once foreign capital inflows pledged by the Friends of Democratic Pakistan (FoDP) group and the United States start pouring from 2010.

The FoDP pledged more than $5 billion to help Pakistan overcome its financial woes over the next three years in the group’s meeting April this year. But only a fraction of that assistance has been realised so far.

The American government too has pledged to provide $7.5 billion over the next five years under the recently approved Kerry-Lugar Bill – The Enhanced Partnership with Pakistan Act – for Pakistan to build economic and social infrastructure. Much of this assistance will be channeled into the economy through non-governmental organisations (NGOs) and spent on infrastructure development and social sector.

“The government is hopeful of receiving a part of the aid pledged by the FoDP over the next few months before the closure of the current financial year. The annual American assistance of $1.5 billion is also expected to start coming from the next year. That will definitely stir the economy and escalate economic growth. The property business will also pick pace once economic growth revives,” the developer said.

Realtors and investors say real estate is heavily under-priced at present. “It is right time to take positions in the real estate and property market as prices have already hit the bottom during the last three years,” the publicity-shy developer said.

But the optimism about the turnaround in the real estate market is punctuated by fears of political instability and revival of terrorism in some parts of the country in the wake of war against militants in parts of the NWFP.

“The recovery in the real estate and property market could be delayed because of the continuing political instability, especially media speculations about the future of President Asif Zardari in the wake of the government’s failure to present and get the controversial National Reconciliation Ordinance (NRO) passed from the parliament,” another investor said.

The recent spate of terrorism across the country has only intensified uncertainty and eroded the investor confidence in the national economy. “Investors who were thinking of returning to the real estate market on the back of improving macroeconomic fundamentals have put their decisions on hold due to political uncertainty and security concerns. If the political situation deteriorates and uncertainty around the future of the elected government continues to persist, the recovery in the property market will also be delayed,” he said.

The Supreme Court is already hearing the cases against the NRO. Political analysts say the future of President Zardari in the presidency and the Pakistan People’s Party (PPP) in government under him largely hinges on the outcome of these cases.

“I hope the court decided the cases against the NRO sooner than later to clear the fog around the political future of the government so that it could focus on the economy,” the investor linked closely to some politicians belonging to the ruling PPP said.

http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/in-paper-magazine/economic-and-business/signs-of-recovery-in-real-estate-market-429

Pakistan's Real Estate Market in 2013 - An Analysis
from DHA Today

Here is the full video of Mr. Muhammad Shafi Jakvani (C.E.O. CITI Associates) talk on Aaj TV program “AAJ Markets” with Mr. Imran Sultan.


http://vimeo.com/dhatoday/pakistans-real-estate-market-in-2013