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Pakistan Post Elections 2013 Real Estate Market Forecast


Pakistan Post Elections 2013 Real Estate Market ForecastThe existing Pakistani Real Estate Market trend has been bullish since the last two and half year. In some parts of the country, prices have escalated by 25% to 200% in the last couple of months.

Keeping in view the recent political scenario in the country, the forecast for the next fiscal year (July 2013 to June 2014) is as follows:

  • The overall economy is expected to improve, in turn boosting the construction business as well. The percentage of newly developed residential and commercial projects is expected to go up by 15 to 20%.
  • The availability of new residential homes is likely to increase by 10%. Commercial property expansion will rise by 15 to 20%.
  • As a general trend, the increasing property demand augments the construction cost as well which is likely to go up by 20%.
  • In view of the positive market growth, investment from foreign companies will increase in the real estate sector by 10 to 15%.
  • There will renewed interest in Agriculture land; the demand and value of which will increase by 15 to 30%.
  • Development of new industries is expected across various segments hence the demand and value of industrial land will increase by 15 to 30%.
  • The buying power will go up by 35% in view of the overall improved economy.
  • Purchase prices of houses, apartments and residential plots will increase by 20 to 50%. Rental rates will escalate as well by 10 to 25%.
  • Purchase prices of commercial property will increase by 25 to 40%. Rental rates will escalate as well by 10 to 15%.
  • The interest rates on home loans will remain stable at 14.3 to 14.8%.

Some of the opportunities for the government to improve the real estate sector include:

  • Development of highway properties to establish industrial estates.
  • Review of Collector Rates % to match with the existing market value of property.
  • Development of large scale affordable home projects.

This article is written by Mr. Muhammad Shafi Jakvani, CEO – Citi Associates. You can get in touch with him at jakvani@gmail.com. This article was also published in DAWN Real Estate Advertiser.

Citi Associates – Real Estate Consultancy, Brokerage and Investment Services

Comments (3)

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  1. Mansoor Khan says:

    DHA Karachi is pleased to announce an incentive for the Allottees / Owners of DHA City Plots to clear their outstanding installments by 31 Aug 2013 without payment of any surcharge. All those, who do not clear outstanding installments by 31 Aug 2013, will have to pay full amount of surcharge as applicable.

    Note: Please update your addresses, cell / telephone numbers and e-mails. Intimation letters with your plot number will be dispatched, soon.

  2. Dawood says:

    Jakvani sahab, what is your forecast for the next 2 month period if I want to buy; are price expected to escalate or is it OK to wait and buy in Ramzan.

    • Dear jakwani sahab, with due respect how u forecast prices in the realestate ? GDP growth is less than 3 % , law & order is worst ,energy crisis is chronic , government is borrowing debt frequently without any break from local & international funds , rupee is depreciating continuously which is declining as never seen before. Cost of energy is growing in unjust way . Government has imposed new taxes on realestate sector with the name of capital gain tax ( which will pay seller ) that is up to 5 % , & buyer already pays a lot of taxes more than 7 % , plus govt. imposed taxes on builders first time in the history. Gst has been raised ,prices of cement & other articles has been raised . So by & large if u calculate all these things in percentage u will note in general governments policies caused more than 20 % inflation in real estate sector .which is disc ouraging

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