- Posted April 24, 2014 by
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Pakistan real estate sector remained stable in Q1 2014, reports Zameen.com
After seeing robust activity in 2013, Pakistan real estate sector had a rather sober start for 2014. During Q1 2014, property rates in Karachi, Islamabad and Lahore mostly remained stable with consistency seen in property value of key areas.
In terms of average rental price of houses in Islamabad, Lahore and Karachi, Q1 2014 witnessed no significant change.
Slight fluctuation in Islamabad property sector
Because of reduced sale purchase activity, Q1 2014 remained somewhat low for capital’s property market. The popular CDA sector of 2013 failed to attract buyers in the first quarter of 2014, not just this, property rates in some of Islamabad’s most notable areas, including Bahria Town and E11, experienced a fall.
As per the stats maintained by Zameen.com, average sale price of 1-Kanal plots in Bahria Town Islamabad dropped by 4.85% in Q1 2014. The fall in property rates of 1-Kanal plots in Sector E-11 is rather minute at 0.61%. In contrary to price drop experienced by E 11 and Bahria Town, sale price of 1-Kanal plots in F-11 increased by more than 14%, which shows that despite the overall lazy Q1 2014, some sectors in Islamabad did manage to maintain their charm.
For homes in Islamabad, Q1 2014 had a different story to tell. As per Zameen.com’s data, value of 1-Kanal houses in G-11 and E-11 increased by 10.44% and 5.56% respectively while the price hike for same sized houses in f-11 during Q1 2014 was as high as 15.36%.
Stable stats for Karachi property sector
Real estate market of Karachi that remained in the limelight towards the end of 2013 had a decent begging for 2014. Despite the occasional falls seen in the property rates, Q1 2014 remained an overall good quarter for the city’s property sector.
In DHA Karachi, the average price hike in sale price of 1 Kanal plots, as per Zameen.com’s stats, remained 6.40% in the first 3 months of 2014. This percentage may appear small but in terms of actual figures, 6.40% rise for DHA Karachi plots is significantly high. In Gulshan-e-Iqbal, no change was seen in sale price of 1 Kanal plots during the first quarter while value of same sized plots in Gulistan-e-Jauhar dropped by 9.09%.
Stable performance of Lahore real estate sector
Sale price of residential plots in Lahore remained unchanged during the first quarter. When compared with Q1, 2013, property demand appeared to have considerably dropped in Q1 2014. The lack of activity in the property market kept Lahore real estate sector deprived of any prominent property price hikes.
In DHA Lahore, value of 1-Kanal residential plots dropped by 3.35% during the first quarter of 2014 while the fall recorded in value of same sized plots in Bahria Town was 3.93%. In terms of price appreciation, houses in Lahore had a better Q1 2014 where value of 1 Kanal houses in DHA and Bahria Town increased by 4.08% and 3.82% respectively.
Based on stats noted for first quarter 2014, it can be deduced that the second quarter will unfold similar trends where the prime areas might see some price hikes. Since overseas investors play a vital role in determining the pace of Pakistan’s property sector, the third and fourth quarter of the year (during and after Eid ul Fitar and Eid ul Azha) is likely to make the market conditions more exciting for the investors.