Islamabad’s property market lacks luster as Lahore, Karachi see substantial growth

LAHORE - The fourth month of the year, April 2016, began on a positive note for the real estate sector of Pakistan with no evident signs of significant decline. Although the federal capital’s property market exhibited stability, Lahore and Karachi were able to experience substantial growth.

Major housing societies in Lahore such as LDA Avenue I, Bahria Town, and Defence Housing Authority (DHA) Lahore’s Phases VII to IX performed well in the 1-kanal category. LDA Avenue I experienced a controlled rise of 2.90 percent, Bahria Town accelerated by 1.07 percent, and DHA Lahore Phases VII to IX also displayed a modest rise of 0.98 percent.

However, Islamabad showed less than commendable results during April as most major housing societies desperately clung on to stability. Despite this, DHA Islamabad managed to post a mentionable 1.43 percent controlled rise in the 1-kanal category.  Karachi’s real estate sector followed a generally positive trend and the only exception was the comparatively sluggish performance of Bahria Town Karachi (BTK).

DHA Rahbar in Lahore remained quite popular as it was included in Zameen.com’s top five localities for plots and homes. Although DHA Karachi took the fourth slot in the plot category, this does not mean that the locality is any less popular now as investors are still eagerly buying and selling here.

This market report will delve further into the performance of the property markets of Lahore, Karachi, and Islamabad.

The performance of Punjab’s capital city was commendable in April and trends generally indicated controlled growth.

LDA Avenue I posted a controlled rise of 2.90 percent in the 1-kanal category while the rise was much sharper for 10-marla plots – an impressive 5.45 percent. This can be attributed to the fact that construction work on houses is well underway in the locality.  Likewise, Bahria Town also boasted a positive performance and witnessed no prominent dips. This is quite remarkable as Bahria Town is still dealing with several controversies.

DHA Lahore’s Phases VII to IX remained stable in the 1-kanal category, merely accelerating by 0.98 percent. However, it is worth noting that the area has substantial potential and is worth considering for real estate investment purposes.  Wapda Town also showed stability and the value of 1-kanal plots rose by 0.43 percent. This is because only genuine buyers seem to be considering the locality right now, while investors do not seem as interested.

The serene federal capital was unable to show significant growth in April. In fact, this market’s performance was quite disappointing. Only DHA Islamabad registered a controlled growth of 1.43 percent in the 1-kanal category which can be attributed to the fact that development work on Islamabad Expressway has begun and property investors and genuine home buyers are showing increased interest in this locality.

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