Three months into 2018, and expert are predicting that the year may not be a promising one for the real estate sector. This is mainly because property prices have estate transactions are expected to decrease by at least 10% in the forthcoming months.
Here are a few trends that are expected to emerge the year progresses.
Property prices will increase by five to 10% rentals will remain the same.
The demand for property in gated communities will increase by 10 to 20%.
The establishment of new gated communities will increase 10% investment in vacant plots and houses within them will increase by 15 to 20%.
Areas which will attract most investment include DHA (Bahawalpur), DHA (Islamabad), Bahria Town (Karachi) and Phases VI and IX, DHA (Lahore).
Property prices will increase by five to 10% rentals will remain the same
Foreign investment will increase by 20%. Popular investment destinations include the outskirts of cities such as Gwadar, Islamabad, Karachi and Lahore.
The demand for multi-purpose commercial buildings (which consist of office and retail space) will increase by 10 to 15%.
Investment along the China Pakistan Economic Corridor (CPEC) will increase by five to 10 % property options that will attract the most investment include large plots which will be used to establish industrial estates and commercial hubs.
Key commercial areas which will attract investment include Jinnah super (Islamabad), Clifton and Shahrah-e-Faisal (Karachi) and Gulberg (Lahore).
Other trends include
The demand and value of agricultural land will increase by 10to 15% in Punjab and Sindh.
Construction costs will increase by 10 to 15 %.
By Muhammad Shafi Jakvani. The writer is CEO, Citi Associates, Karachi.