Zameen.com’s February 2018 Lahore Property Market Report
The property market in February for all four major cities presented a mixed picture of moderate growth and stability, showing the steady recovery of the real estate market from previous events. Very few drops were present, and were moderate.The upcoming elections have investors waiting to see what the economic situation of the country will be, and the real estate market will change accordingly once the elections are over.
In Lahore, the market remained largely stable with no significant changes. The 1-kanal plots in all major localities remained stable for the most part, in accordance with the ongoing bearish trends in property. However, 10-marla plots in many societies experienced moderate growth, which shows that genuine buyers seeking to build their homes are the current major players in Lahore’s real estate.
Overall, stability and moderate growth were the prevailing trends, continuing the bearish trend of the past few months, with steady improvement being seen as investors anticipate future returns once a clearer picture of the market is presented after the elections.
Market Report Lahore
In Lahore, DHA Phases I-VI showcased stability for 1-kanal plots with a minor difference of 0.63%, and moderate growth of 1.79% in 10-marla plots. This can be attributed to the rising number of homes being constructed in Phases V and VI by genuine buyers, who veer more towards 10-marla plots than 1-kanal plots.
DHA Phases VII-IX showcased similar trends, with 1-kanal plots clinging to stability at 0.56%, and 10-marla plots going up by 1.25%. A significant amount of this rise is due to development work being undertaken in Phase IX, where prices are currently ideal for both investors and genuine buyers, and are expected to rise once the society takes shape.
For Bahria Town, February showed mixed trends with a stability prevailing with a change of 0.20% for 1-kanal plots, and a moderate rise of 2.44% for 10-marla plots. Again, this indicates the significance of genuine buyers in the currently bearish market.
Bahria Orchard’s 1-kanal plots were the only ones to experience a moderate drop of 1.34%, with its 10-marla plots remaining stable at a price fluctuation of 0.55%. However, the current prices are ideal for investors to resume their interest here, as these prices will go up once possession is handed within the next 15 months or so.
In Wapda Town, prices remained stable for both 1-kanal and 10-marla plots. This is because the locality is largely saturated and there is little new activity here for prices to respond accordingly.
LDA Avenue I remained stable, with the prices changing by 0.17% and 0.86% for 10-marla and 1-kanal plots, respectively. This society remained stable due to the homes already built and inhabited there, leading to a certain amount of activity by genuine buyers for the plots in the society not under litigation.
Overall, the real estate market fared in quite a stable manner, with hints towards steady growth in the near future. Circumstances from last year, and the upcoming elections mean that investors are biding their time before fully participating in dealing with property. As the year progresses, and the performance new developments and mega-projects such as Islamabad International Airport and the Lahore Ring Road come to light, the market is expected to perform much better.
It was seen that genuine buyers are still the prevalent force in the current real estate situation, and have kept the bearish trends form the past few months ongoing.Lahore remained largely stable, with major societies like all phases of DHA and Bahria Town experiencing little to no change in their 1-kanal plot options, and very moderate growth for 10-marla plots. This shows that Lahore was mainly a genuine buyer’s market, with investors waiting for the budget and the elections before making their moves in the real estate industry.
“Pakistan’s real estate has shown encouraging progress in February when you compare it to the ups and downs of the last year. However, we can only see for certain how well the market will perform once the elections are over. The one thing that we know for sure is the need for regularisation has never been greater- with it, we shall see better trends, growth, and overall stability”, said Zameen.com CEO Zeeshan Ali Khan.