A property and real estate such as Sapphire Heights boom are now taking place in Islamabad and Rawalpindi. The prices are quite high and are just rising. Property investors are vying for prime properties in several cities, and the prices are already outlandish. Prices are now about five times higher what they were a few years ago. This market is now a sellers' market since no one is buying anymore. Both buyers and sellers are delaying their purchases while waiting for a price hike. Is it worthwhile, though? Are home prices expected to increase further, or is the bubble about to burst?
- In the last 4 months, prices in Topcity-1 doubled. An increase in residential and commercial construction activities encouraged investors' expectations of quick profits.
- A 25x40 property in the D-12 developed sector now costs 1.5 crores, up from 92 lac in the previous six months.
- The same rising pricing trend was seen in G-13 and G-14.
- A 25x40 property in the underdeveloped E-12 area now costs 1 crore, up from 60 lac in the previous six months.
- The price of a 5 Marla property in the I-15 underdeveloped area has increased from 38 to 50 lakhs from a few months ago.
- In the Undeveloped CDA section of C-15 and C-16, prices increased by 60%.
- Another area where prices increased by nearly 75% in the previous year is CDA sector I-12.
- DHA In the past two years, prices in Islamabad Phases 2 and 5 have increased by 60–70%, making it a popular spot for serious buyers and investors to store their money.
- Plot prices in Bahria Town phase 8 and Bahria Enclave increased somewhat, making it impossible for them to compete with CDA and DHA in this race.
- Prices increased in communities including Blue World City, Rudn Enclave, Sapphire Heights and Citi Housing Kharian.
- The ongoing construction of the PWD interchange might increase costs in the communities placed there.
- along the Islamabad Expressway's both sides.
- Agricultural land prices increased by 30% to 50% at Blue World City and Citi Housing Kharian.
Purchase Frenzy for Long-Term Projects
The real estate market has been fairly busy in the second half of 2020 despite the ongoing political and pandemic issues, and investments are coming in from both local and foreign Pakistanis. The twin cities now have a number of investment opportunities that are drawing a sizable portion of investment.
Many individuals believe that this is the ideal time to make investments in the market such as in Sapphire Heights. They are purchasing and investing in house developments whose construction will still take years. Consider the different housing societies and real estate project such as Sapphire Heights that are sprouting up only a few kilometers from these main cities. Plots in the majority of these communities are valued in lakhs.
Plots for investors and clientele with lower budgets are available through societies like Sapphire Heights, Rudn Enclave, and Blue World City on instalments. To draw customers, these societies are utilizing the Rawalpindi Ring Road project to their advantage.
Price Growth Factors
- The high rate of inflation in Pakistan is driving up real estate costs.
- The country's real estate market saw significant growth as a result of the current administration's reforms and incentive schemes.
- tax and CVT/stamp duty reduction.
- The current need for urban housing is for about 350,000 units annually. However, there are only 150,000 units available annually.
- Other industries including travel, hotels, medicine, transportation, import/export, etc. have been severely impacted by Covid-19. These industries also attracted investors who wanted to lodge their capital in real estate.
- Islamabad has extremely high property prices because it is the capital (Federal State). Second, it is one of Pakistan's most beautiful and advanced cities. Thirdly, Margalla Hills, a renowned and picturesque vista, surround it.
- The development of high-rise buildings in Islamabad's blue area and other housing societies housing the majority of the nation's workplaces has led to increasing property prices.
- CDA develops new sectors at a fairly gradual pace.
The Turning Point
The downturn point or current rise's ceiling must be known to buyers. Rarely do first-time purchasers want to invest in real estate such as in Sapphire Heights and Citi Housing Kharian with a long-term objective. The remaining investors are short-term investors who just want to acquire tiny parcels of land and then resell them for greater prices. Additionally, society owners are purchasing files in large quantities so that they may subsequently create a false shortage of files and sell them for astronomical sums of money. The majority of specialists would advise you that the bubble will burst quickly.
