Pakistan Property Market

[Al Bhatti]

15 April 2015

Pakistan property attracts Gulf buyers
Online property seekers from the USA top the list of foreigners searching for real estate in Pakistan, followed by Saudi Arabia, the UAE, the United Kingdom and Canada.

Middle East investors are snapping up property in Pakistan’s expanding real estate market, according to new data from global property portal Lamudi.

Online property seekers from the USA top the list of foreigners searching for real estate in Pakistan, followed by Saudi Arabia, the UAE, the United Kingdom and Canada.

According to Lamudi, a global property portal focusing exclusively on emerging markets, Pakistan’s real estate sector is currently seeing increasing interest from foreign investors. Despite political protests in August last year dealing a blow to the country’s economic outlook, the real estate market has since rebounded. The property sector is now poised for growth in 2015, leading to improved investor confidence.

Saad Arshed, country director of Lamudi Pakistan, said: “In recent months, we have seen renewed interest from overseas investors inquiring through our website. This comes after the economy has shown signs of recovery in the wake of last year’s political sit-ins, and with it the real estate sector has also rebounded.

Our onsite data shows that the USA is the leading foreign investor in Pakistan’s real estate market, with the highest number of overseas views and leads coming from the country. Foreign investors and overseas Pakistanis based in the Middle East, particularly Saudi Arabia and the UAE, are also showing interest in Pakistan’s buoyant property sector.”

Stagnant prices coupled with uncertainty regarding the political sit-ins in Islamabad had an adverse impact on Pakistan’s property market last year. However, the market has since recovered, with prices stabilising and even increasing in some areas of the country’s capital in the second half of the year. The strongest price growth in Islamabad during Q3 2014 was registered in E-11/3 (seven per cent), B-17 (4.5 per cent) and Defence Housing Authority (4.4 per cent). Property market growth has been stronger in key cities, including Lahore and Karachi.

The country’s economic outlook has also improved. The International Monetary Fund recently raised its gross domestic product growth forecast for Pakistan to 4.7 per cent for the 2015-16 financial year. The government is confident of reaching its 5.1 per cent GDP growth target for 2014-15.

Foreign direct investment in Pakistan has declined in recent years, from $5.4 billion at its peak in 2008 to $1.46 billion in 2013. The current government is seeking to reverse this decline by courting international investors through its Board of Investment.

http://www.khaleejtimes.com/biz/ins.../uaebusiness_April146.xml&section=uaebusiness

 

[Ali Rathore]

Anyone selling their property in Lahore or Islaabad do let me know.

 

[ghazi52]

LAHORE: Pakistan’s real estate market tends to ignore broad scale macroeconomic indicators, posting growth even as foreign direct investment falls or infrastructure spending remains stingy.

Data from an online property portal, Zameen.com, shows the country’s property market has posted a phenomenal growth of 118% in the last five years. This high growth rate can be attributed to robust demand from seasonal investors, genuine buyers and an overwhelmingly better security situation.

Karachi has led the way in terms of growth with the strongest figures coming from the port city’s residential plots. In Karachi, an average residential plot price in January 2011 was at Rs2, 276 per square feet but amounted to Rs8,089 by January 2016. The city posted a growth of 255% in the last five years.

Lahore’s case is not that different. Data revealed that average prices of residential plots have observed a 149% growth in the last five years. Average price in the city soared to Rs3,339 per square feet in January 2016 from Rs1,336 in January 2011.

The country’s capital city also posted an average growth of 143% in residential plots, where prices reached Rs2, 699 per square feet in January 2016 from Rs1,108 per square feet in January 2011.

Zameen.com Chief Executive Officer Zeeshan Ali Khan said that it is likely that the growth trend will continue due to increasing urbanisation and demand for housing.

“Pakistan’s economy is expected to grow and with the China Pakistan Economic Corridor (CPEC) coming up additional opportunities for the economy will open including the real estate sector.”

Khan said that the effect of CPEC is already evident in Gwadar, where average property prices have risen up to 70%. In some areas of Gwadar, a growth of around 200% has been recorded over the last few years, said Khan.

While many real estate experts believe that prices have reached a peak and a downfall is imminent, Khan said the slide is unlikely. “Majority of the dealings are carried out in cash and there is less dependence on mortgage loan facilities. The market remains a safe bet.

“There is little or no concept of mortgage finances in Pakistan to buy land or a housing unit. We mostly deal in cash. Hence, in stagnant markets, people have the much-needed holding power.”

In India, the mortgage market is 10% of their economy and the country is dealing in housing units and apartments instead of land. “There are almost 50,000 housing projects in four cities of India, whereas Pakistan’s total projects are just 2,000”, Khan added.

However, Khan says the trend in Pakistan is gradually changing and the concept of gated communities in mega and second tier cities is becoming common.

“There is a need to organise this sector and get precise data. This can only be done by introducing reforms and legislations. This could help the market get mortgage finances,” Khan added.

Karachi real state market is on boom

 

[EagleEyes]

Anyone here who has invested in plots? How are your investments looking?