BY FAZAL SHER & WAQAR LILLAH
The real estate business in federal capital has witnessed 50 percent increase during the last few months due to migration of a number of well-off families from Khyber Pakhtunkhwa (KP) and Karachi to Islamabad because of deteriorating law and order situation in areas where they were resident.
The growing cases of extortion, kidnapping for ransom coupled with street crimes in KP and Karachi have compelled a large number of businessmen, traders and well-off families to shift to Islamabad or abroad especially Dubai. “The capital has witnessed a massive influx of people from KP and Karachi during the last few months due to which prices of property have increased 50 percent,” said Fakhar Ali, CEO Forces Estate while talking to Business Recorder.
He said the property value had risen previously in 2003-04 and now it had been increased by up to 50 percent after eight years, adding that in the past mainly investment of overseas Pakistanis affected property values in the city but now property prices had shot up due to influx of people from other Pakistani cities. Another real estate agent told Business Recorder that residential property witnessed 50 percent increase while commercial property prices had increased by 20-30 percent.
He maintained that 100 percent increase in property rates was witnessed in I-15- and E-12 sectors and added that people who were forced to leave their native areas due to security reasons most preferred to stay in those newly developed sectors of federal capital. An official of Capital Development Authority (CDA) said the prices of property in Islamabad and its adjoining areas had doubled. The property value of land in areas like Pakistan Town, Korangi, PWD Housing Scheme, Police Foundation, Bharia Town phase 7 and 8, and DHA Islamabad are booming.
A 10-marla house which was priced up to Rs 5 million six months ago, has now doubled in value. A one Kanal house that used to be between Rs 6.5 million to Rs 7 million a few months earlier is now between Rs 18 million to Rs 19 million, he added. He said the year 2013 could prove a promising year for people in the real estate business in federal capital as investment in and demand for property had increased by an estimated 30 to 50 percent while availability of newly constructed houses had increased by only 20 percent thereby pushing up prices.
The sectors where demand for commercial property is higher include: F-11 Markaz, which is relatively new commercial centre located only a five-minute drive from Fatima Jinnah Park. G-6 Markaz is one of Islamabad’s most developed commercial areas and includes various businesses ranging from corner grocery stores, banks to fancy restaurants, boutiques and furniture showrooms. G-8 Markaz has well maintained plazas and standalone shops. This commercial area has the requisite grocery/stationery stores and restaurants but is especially well-known for its car and furniture showrooms.
Copyright Business Recorder, 2013