Pakistan’s Real Estate Trends in 2014

Only seven months since the year 2014 started, and experts already believe it has been a good year for the real estate market, despite property demand and price fluctuations. Following are some trends the real estate market witnessed this year:

Residential Property Trends:

Residential property demand has increased by 15% approximately, which includes houses, apartments, and town houses.

 Price increment with respect to cities is:

• Karachi – 10-25%
• Lahore – 5-20%
• Islamabad – 7-10%

 Increase in rental rates with respect to cities is:

• Karachi – 15-25%
• Lahore – 10-12%
• Islamabad – 15-18%

 The areas this year attracting most investments are:

Karachi – Phase VIII DHA, DHA City Karachi and Bahria Town Karachi.
Lahore – Bahria Town.
Islamabad – sectors 114-116.

Demand for apartments and property in communities with gates did not stop increasing this year. About 25 gated communities and apartment complexes are established in Karachi, 7 in Lahore, and 2 in Islamabad.

Gated residential communities outside the metropolitan cities gathered 25% more investments this year.

Commercial Property

The overall demand for commercial sites – standalone shops, offices, and retail shops in commercial buildings – has increased by about 10%.

Price increment with respect to cities is:

• Karachi – 10-25%
• Lahore – 10-15%
• Islamabad – 10-12%

Increase in rental rates with respect to cities is:

• Karachi – 10-20%
• Lahore – 10-15%
• Islamabad – 15-20%

The areas this year attracting most investments are:

• Karachi – Clifton, DHA and PECHS
• Lahore – Liberty Market and Block Y, DHA
• Islamabad – sector F-11 and Blue Area

About 30 new commercial projects, including shopping centres and malls, are launched in Karachi this year. 10 in Lahore, and 5 in Islamabad.