Pakistan’s Real Estate Market In 2012

As the year 2012 comes to a close, experts concur that it was a promising year for the real estate sector, since investments and demand for property increased by an estimated 10 to 15%. Here is what the experts have to say about 2012:

• Purchase prices of residential property increased by 10 to 60% in Karachi and five percent in Lahore; they remained the same as in 2011 in Islamabad.
• Rental rates for residential property increased by five to 10% in Karachi, 10% in Lahore and 20% in Islamabad.
• Purchase price of commercial property increased by five to 10% in Karachi, 10% in Lahore and 20% in Islamabad.
• Rental rates of commercial property remained the same as in2011 in Karachi and increased by 10% and 20% in Lahore and Islamabad respectively.
• Overall property sales transaction increased by 10 to 15% in Karachi, 10% in Lahore and five to 10% in Islamabad.
• Areas were property investments were primarily made include Bahadurabad, Clifton and DHA in Karachi; Bahria Town and DHA in Lahore; Sector D-17, E-11, F-11, F-15, F-16, F-17, G-13, I-14, I-15 and I-16 in Islamabad.
• The approximate number of new housing projects in Karachi was 75, two in Lahore; there were none in Islamabad.
• Property investment by expatriates remained the same as in 2011 in Karachi, increased by 15% in Lahore and by 15 to 20% in Islamabad.
• Interest rates on home loans decreased by 2.45%

By Uzma Nawaz