Lahore real estate updates June-2013
Following article written by M Rafique Goraya, published in today’s Business recorder gives brief overview of Lahore’s real estate market during the last few months. Overseas Pakistanis must be very careful when buying properties because the prices now are touching unrealistic levels. The boom may continue during 2013 but the market can see a sharp fall in 2014.
Property prices in various housing schemes and towns of Lahore have unexpectedly surged by 100 percent over the past few months, according to a survey conducted by the Business Recorder. Property dealers said that the current boom in real estate business was triggered by the expectation of coming into power of a new PML-N government who listed revival of economy among his top three priorities.
A building contractor in DHA Lahore, Khwaja Misbahul Haq said that the prices of plots and houses had almost doubled in some sectors of DHA. According to him, the price of a one-canal house now ranged between Rs 35 million and Rs 37.5 million in Sector 5 of DHA over the past few months. Rents in the locality also surged by almost 20 percent, up from Rs 80,000 to Rs 100,000.
Attributing the price increase trend on the worsening of the law and order situation in Karachi, he said that DHA also offered “security of investment and personal safety”. Professor Mohammad Sharif, the CEO Pak-Arabia Associates, said that prices of 10-marla plots and houses in various housing schemes on the Ferozepur Road had nearly doubled over the past six months.
Mohammad Bashir Malik of Wapda Town Property Consultants said the price of a 10-marla plot in Wapda Town increased from Rs 6 million to Rs 7.5 million in the same period. The price of a five-marla house surged to Rs 6.5 million and a 10-marla double-storey house now ranged between Rs 12 million and Rs 12.5 million Mohammad Ajmal, the owner of Ajmal Estate on Khayaban-e-Jinnah on the Raiwind Road said that prices of residential and commercial plots in the OPF Housing Scheme and Bahria Town had risen by as much as 100 percent after remaining stagnant for several month.
Experts of property business expressed the hope that local and foreign investors would continue to make huge investments in the housing sector in Lahore during the next financial year. They also stated that housing and tourism sectors would play a significant role during next five years on expectations of normalisation of relations with India, they said.