Broadway Estates Lahore: MARKET REPORT: PAKISTAN’S PROPERTY MARKET SEES LARGELY POSITIVE Q3 2015

OVERVIEW

The realty market has effortlessly galloped into the next quarter riding on the wave of several remarkable spikes. In Q3 2015, property prices across the major cities of Lahore, Karachi and Islamabad continued to climb upwards for the most part. While certain projects of major developers did suffer a few setbacks, these impediments shouldn’t be a cause for long-lasting concern.

From Original: http://www.zameen.com/blog/market-report-pakistans-property-market-sees-largely-positive-q3-2015.html

According to stats meticulously compiled by Zameen.com, Karachi proudly flaunted an overall stellar performance. The one exception to this was Bahria Town Karachi (BTK) which disappointed in both the 500-yard² and 250-yard² categories. DHA Karachi and DHA City Karachi (DCK) performed well, offering investors good returns over the course of the quarter.

Lahore saw a modest upward push. While major localities continued to impress and registered several spikes, DHA Lahore clung on to mere stability in the 1-kanal category and posted a sharp drop for 10-marla plots.

The federal capital brought forth a mixed bag of ups and downs. While DHA Islamabad posted less-than-ideal numbers, Bahria Town Islamabad’s performance was remarkable in the 1-kanal category. Sectors F-11 and E-11 experienced consistent, controlled growth.

A rather noticeable deviation from previously prevalent trends was how DHA’s projects in Lahore and Islamabad failed to excite stakeholders. Even Eid-ul-Azha – which usually corresponds to rising activity because overseas Pakistanis home for the holidays are inclined to invest in DHA projects – could not provide a much-needed push this time around. However, despite this, DHA remained the top performer overall in terms of popularity. Bahria Town also retained its popularity across the country and, surprisingly, Islamabad’s list of top five localities for homes saw a new entrant – Bani Gala.

Generally, this quarter wrapped up quite nicely, giving Q4 a helpful push to steer it in the right direction from the very beginning.

LAHORE

Lahore did fairly well in Q3 overall despite a few bumps along the way. Prices for DHA Lahore’s 1-kanal plots remained stable with a few small dips scattered here and there, but 10-marla plot prices witnessed a sharp drop. There could be a variety of reasons behind this, including the increase in taxes, the income source disclosure notices sent to investors, and the imposition of withholding tax on banking transactions. Most importantly, the launch of DHA projects in Bahawalpur, Multan and Peshawar may have shifted investor focus.

Even still, it is too soon to wipe your hands off of DHA Lahore. Monumental amounts have already been funnelled into Phase IX (or Prism 9), and since development charges have yet to be announced, investors were probably just waiting to see how the chips would fall.

On the other hand, Bahria Town and LDA Avenue I performed extremely well this quarter and experienced sharp rises, despite various litigation issues. Lahore Cantt remained as bankable as ever and saw controlled growth.

1 Kanal

Average Prices of 1-Kanal Houses in Lahore \| 2015
Locality	Avg Sale Price	Avg Monthly Rent	Rental Yield
DHA Lahore	38,778,289	131,427	4.07%
Lahore Cantt	38,758,890	132,221	4.12%
Bahria Town Lahore	35,487,474	100,884	3.43%
Wapda Town	31,240,464	104,936	4.04%
Johar Town	30,962,743	113,469	4.40%