LAHORE ( AZAKA NAEEM )
Information technology has bought a new change in the world and this changes has shown rapidly growth in the third world country like Pakistan where, IT has immediate and sizeable prospects for further progress and very promising change in the way life is lived in the country. One such example is Pakistan’s leading property portal Zameen.com, which pioneered the shift from traditional real estate dealings to a viable online platform in 2006 and quickly become the darling of internet-savvy Pakistanis. Since then, it has drawn significant investment from real estate and venture capitalism heavyweights as far afield as France, Singapore and Malaysia.
The third quarter of 2014 has been a tough one for the Pakistani economy in general, and the real estate sector of the country has also struggled with decreased activity and sluggish price trends. Let’s take a look at how the market performed.
Perhaps owing more to a long overdue correction than other factors, the third quarter of 2014 was troubling for Lahore Cantt, which is one of the most prominent and popular localities in Lahore. According to stats from Zameen.com, the leading property portal of Pakistan,Lahore Cantt’s1-kanal plots had gained 12.61% in value on average in Q2 2014. But things took a bit of a downturn this quarter asplots of the same size lost 4.32% in value on average over the course of Q3 2014.
Elsewhere in Lahore, there were few drastic changes. DHA Lahore had another rather uneventful quarter in which prices for 1-kanal plots only rose 2.74% on average, down from 3.77% in Q2. Bahria Town Lahore, which also had a flat year apart from a drop in March, saw a 2.65% increase in the average value of 1-kanal plots in Q3, down slightly from 3.08% in Q2.
LDA Avenue I, meanwhile, has been enjoying strong numbers courtesy of its announcement to hand over possession in several blocks. In Q3 2014, prices for 1-kanal plots in LDA Avenue I went up 11.91%. Although that is less than the 16.11% rise recorded in Q2, it was still a significant gain.
After a stupendous 21.88% rise in prices in the first quarter of 2014, Sector F-11 has had a lacklustre year so far owing to the correction that followed. In Q2, prices for 1-kanal plots in the sector came down 5.55%, and dropped another 5.89% in Q3 to land roughly where they were at the start of 2014.
Sector E-11 bounced back from a disappointing Q2 – in which its 1-kanal plots lost nearly 5% of their value – with a solid 14.57% gain at the end of Q3. Bahria Town took a nosedive, with 1-kanal plots in the locality losing an astonishing 19.70% of their value in Q3.
Meanwhile, DHA Islamabad largely made up for its 9.91% loss in Q2 with a solid 11.67% gain over the course of Q3.A 1-kanal plot in DHA Islamabad now costs more to buy on average than a same-sized plot in Bahria Town.
In the second quarter of 2014, DHA Karachi struggled to maintain the momentum it had at the end of the first quarter. One-kanal plots in this highly popular locality had lost 1.13% of their value on average by the end of Q2. But Q3 turned out to be a good quarter for DHA Karachi with a 6.70% increase in prices.
Conversely, Gulshan-e-Iqbal, which had enjoyed a 12.82% increase in the average prices of 1-kanal plots in Q2, underwent a 3.03% decline in prices in Q3. Gulistan-e-Jauhar continued its upward march with a 2.67% increase in prices of 1-kanal plots in Q3, but this was down significantly from the 18.89% gain in Q2.
After a great Q2 in which 1-kanal plots in DHA City Karachi gained 27.19% in value, DHA’s latest venture in Karachi was brought back down to earth with a sobering 5.08% drop in prices in Q3. Since investors are being very cautious with their money because of the tumultuous political situation in the country, DHA City Karachi may be seeing interest dry up for the time being.
Considering the political situation that has prevailed in the country since the start of the quarter, these are great numbers across the board. The common expectation throughout the quarter was that these disturbances in the political landscape would take a sizeable toll on the market, but the numbers say otherwise.
LAHORE ( AZAKA NAEEM )