The first three months of 2015 have not been very promising for the real estate sector due to the prevailing law and order situation. However , experts are anticipating an improvement as the year progresses , given that demand for property (residential and commercial ) has already increased by 10 to 15% this year.
Here is what the experts expect to happen in 2015:
* Purchase prices of houses will increase by 15 to 20%; rentals will increase by 10 to 18%. Popular plot sizes include 500 and 600 square yards.
* The demand for houses on major thoroughfares will increase by 12 to 20%; many of these will be repurposed for commercial enterprises.
* Houses built on plots in excess of 2,000 square yards are expected to be demolished and replaced by townhouses.
* Demand for apartment will increase by 10% to 15%; their value and rental will increase by 12 to 15%.
* Gated communities will continue to attract investment an demand will increase by 15 to 18%.
* Residential area most likely to attract investment include:
Islamabad- Bahria Town and Phase II, Sector F-10; Lahore-Bharia Town, Phases III and VIII, DHA; Karachi- Bahria Town, Block 5, Clifton, Phases VII and VIII, DHA.
* Prices standalone shops and retail space will increase by 7 to 11%; rentals will increase by 9 to 12%.
* The demand for multi-purpose commercial buildings (malls and office space) will increase by 10 to 15%.
* Commercial areas most likely to attract investment include:
Islamabad – Jinnah Super; Karachi- Clifton, Nursery and PECHS; Lahore -Gulberg II and III.
Investment in agricultural land will decrease by five to seven percent; prices will remain the same as 2014.
By Uzma Nawaz. Information provided by Imran Baig , Project Manager, DHA (Islamabad), Shafi Jakvani, CEO, Citi Associates (Karachi) and EZ Estate (Lahore).