Lahore has become new Karachi. With rapid increase of population, a robust management of resources is necessary for preserving the city’s clean landscape and comfortable ambience as well as its status in Pakistan real estate. In collaboration with Punjab Government, City District Government and Lahore Development Authority are making the needed arrangements to meet these new challenges. Construction of new roads, reconstruction of the old and broken ones, and addition of new overhead bridges, flyovers, service lanes and footpaths along with better drainage system are some of the glimpses of Lahore’s current face.

Meanwhile, individual needs of different zones and markets are also addressed, for instance, the long longed parking plaza for Liberty Market i.e. Liberty Ride and Park Plaza is now operational to fix the traffic issues of the market. However, few hurdles make this plaza a not so attractive investment in Lahore Properties. Although, the Liberty Ride and Park Plaza was inaugurated in December 2010, it is still struggling to find its way in Lahore real estate as a strong investment. The construction cost of the project also remains controversial as many people find the Rs. 678million spent on the plaza a “staggering high” amount.

In Addition, couple of corruption cases were reported against the LDA where the Authority was accused of mismanaging an amount Rs. 37 million. The petition filed against its construction on the property of Parks and Horticulture Authority is beside the issues faced by the Plaza. None the less, the Park and Ride Plaza seems to have sailed through the crises and now stepping into a new era where its acceptance is indispensible for fixing the maddening traffic issues faced by the Lahore’s most posh market i.e. Liberty Market. Many people have appreciated the addition of this plaza in the busy Liberty Market and the shop owners who initially did not find it pleasant to walk all the way to their shops from the parking plaza are now adjusting accordingly.

Built adjacent to United Christian Hospital, Liberty Park and Ride Plaza is constructed on an area of 3.17 kanal and has 11 floors. Four floors including the basement, ground floor, first floor, and rooftop are reserved for shops and restaurants. Rest of the 7 floors are meant for vehicle parking and have a room for as many as 308 cars. The plaza can be accessed from all four sides and has two capsules lifts as well as stairwells and ramps. To ensure the steady function of lifts, signals and barriers, a standby generator is also installed. The construction design of the plaza has not ignored any security aspect and has facilities such as CCTV, fire alarms and fire fighting, audio and emergency buttons, car-canners, public address system and road blockers.

Pakistan real estate sector has undergone many changes over the course of last few years. Where the sector experienced rapid growth and expansion during the early and mid 2000s, it also experienced stagnancy for the years that followed. The trillion-rupee industry, which is definitely one of the most robust real estate markets in the world, is now inching towards another metamorphosis. As is the case with all things, Pakistan property market is too headed towards a more radical transformation that is driven by the demand from buyers who are now after a more luxurious living without compromising on the security.

For the longest time, the property market of Pakistan was more of a market for middleclass and lower middleclass buyers who were keen on one, maybe two storey homes with basic facilities and a long lasting, sustainable structure. However, the modern home seekers in major cities are no longer simpletons eager to pounce on any offer that can save them some bucks. These smart buyers are after houses that are more luxurious and they are willing to pay a bit more than they have to if it justifies the cost. One important factor that affects their buying decisions is the kind of security offered by newer developments.

Street crimes in the major cities of Pakistan including Karachi, Islamabad, and Lahore have become a huge problem for both new and the existing developments dotting the cities. In attempts to curb the incidents of street crimes, many projects have developed gated communities while others have resorted to deploying security guards. Newer communities, which are developed on the peripheries of Islamabad, Lahore and Karachi real estate, are more vulnerable to not just street criminals but also robbers and dacoits. Therefore, these new developments need to offer a lot to prospective buyers in terms of high-class amenities and modern lifestyle facilities along with foolproof security. The security remains the definitive factor affecting buyers’ decisions.

Pakistan real estate is a billion dollar industry. Apart from the raving and uncontrollable inflation in the country, the government has no contribution is sustaining or boosting the local realty market. There is massive potential in the property market of Pakistan where it can perform miracles for the economy with a little help from the government. Among the many steps, that government can take to boost the performance of Pakistan properties, one is to promote tourism on the same lines as the United Arab Emirates.

The United Arab Emirates in general and Dubai is particular is popular for being a hub of some of the world’s most precious real estate developments. The UAE’s government’s decision of capitalising on Dubai real estate market was followed by a series of steps taken to attract foreign and local investors in order to give it a leg up to prosper. Other than successfully raising substantial capital for strengthening UAE real estate and helping it become the fifth important pillar of the state, UAE government also very smartly used its high-end real estate to attract loads of tourists to the country.

Taking a leaf out of UAE’s book, Pakistan could learn a lesson or two from the UAE government and work on her own tourism industry in hopes of lending a helping hand to the local real estate market. Not to boast or anything but there are very few countries in the world which are as gifted as this Land of Pure. From the lush green valleys of Swat to the snow clad peaks of Gilgit Baltistan, to the sun kissed deserts of Thar and the virgin beaches of Gwader, Pakistan offers breathtaking sites at every step of the way.

Pakistan could gain millions in revenue by cashing on the gifts offered by the Almighty with little effort. On its way up, the tourism industry could also substantially give Pakistan real estate in general and hotel industry in particular a nudge in the right direction and towards a more prosperous future.

Finding a good home has always been a difficult job as a lot of factors contribute in making a home and its locality appropriate for different clients. The buying and selling activity in Pakistan real estate was seen on low during last many years but the prices remained stable in bigger cities including Islamabad, Karachi, and Lahore. Those who could not afford to buy houses in these cities chose to live on rent, which is evident from the increasing population of the mentioned cities. According to the general trends of renting and buying houses in Pakistan, it is surprising to note that the demand for houses in posh as well as less developed areas is similar.

Out of bigger cities, the performance of Lahore real estate has been encouraging for the realty market and many housing and commercial projects kept on adding value to properties in Lahore. Ever since the property boom witnessed in 2001, Pakistan real estate sector has expanded 25 folds. In light of the unfolding international events of 2001, a tremendous rise was observed in the revenue sent back home by the overseas Pakistani and most of it was invested in real estate business. Lahore real estate in general and Properties in DHA, Lahore in particular benefited much from this foreign exchange. The value of residential plots and houses in DHA increased 300 times in less than few days after the tragic demise of World Trade Center.

The real estate business in Pakistan has climbed many steps of success ladder but it is very important that its benefits are reaped by people from all sectors, classes and localities. According to the estimates of Karachi Chamber of Commerce and industry, more than 5 lacks houses need to be added in the realty sector annually for next two decades to meet the housing shortfall in Pakistan. It is also been noted that almost 50% population of population of major cities lives in undesirable conditions. These statistics show the potential of real estate and infrastructural sector of Pakistan and also determine the areas where the focus should now be at.

The work, on part of the Lahore Development Authority, for the development of several new housing societies in Lahore has already begun. During the last week of January 2012, a total of forty three commercial and residential plots were auctioned in Lahore. Held at the Lahore Development Authority’s Community Centre in Muslim Town, the first auction brought in loads of buyers and investors. This single auction managed to sell some twenty four residential and eleven commercial plots.

All of these plots are either located in newly developed areas or are an extension of Sabzazar and Johar Town. Sabzazar is already a housing scheme that is considered on the peripheries of the city of Lahore. The rapid expansion of Lahore goes to say a lot about the huge number of people which are pouring into the city every year and making it their hometown. Although these auctions were but the start of a series of auctions that were scheduled for 2012, the number of customers and investors they attracted speaks volumes about the demand of plots in decent localities.

Together, both of these auctions generated a total of Rs 41.79 million which is a huge number in itself from plots which are located in the outskirts of Lahore. Johar Town took away the honour of receiving the highest bid for one of its commercial plots which stood at Rs 1.12 million per marla. For residential property however, Sabzarar remained the preferred locality where one of the plots sold for Rs 431,000 per marla.

Some might be startled to see such high prices for such remote housing societies but the prices were approved by the evaluation committee of the State Bank of Pakistan. LDA has postponed any further auctions indefinitely for reasons unknown but you can regularly check its website to stay updated if and when the next auction is held.

The capital city of Islamabad holds the honour of being one of the most expensive places in Pakistan. Here, the price of everything ranging from bread to milk, clothes to properties – rents to wheat is more expensive than it is anywhere else in Pakistan. For this and other countless reasons Islamabad is truly a city for the elite. While there are several other cities where investing in the local real estate can prove to be really profitable, Islamabad remains one place where having a home of your own is almost everybody’s dream. Sadly enough, not everyone affords such a luxury.

In the capital city, there are areas which have been completely recession proof throughout the economic crunch. The city hosts several high profiled personalities of the country along with a huge number of foreigners as well. Well equipped with various amenities of life, Islamabad undoubtedly stands as the best city to play home to all kinds of people. With its wide roads, clean waters, parks, greenery, clubs and other facilities, the city offers a lot in terms of luxury and comfortable living.

The general condition of Pakistan real estate in general is cold with there being no noticeable rise in value but Islamabad on the other hand has a fair few areas where the condition of the market is almost as if there has never been an economic crisis even in the peripheries of the whole city. Islamabad Defence is a project that many believe has the potential to give birth to some of the most expensive properties in Pakistan.

Blue Area Islamabad, which has long held the title of being the most expensive properties in Pakistan but with the initiation of a handful of high profiled project, the title seems to be slipping from the hands of Blue Area. Projects like DHA Islamabad and other well known housing societies in the heart of the capital offer living conditions which are fit for the cream of the society. So in case you are looking for a good investment, you better look at the various opportunities the city of Islamabad has to off.

As per a recently published news report, the rates of Pakistan real estate have been stagnant for over six years. Six years is a considerably long period of time for assessing the trends and predicting the future of just about any industry in general and real estate in particular. The perpetual political turmoil, along with the constant fear of drastic policy changes made in the blink of an eye are some of the factors which are being held responsible for the bad condition of Pakistan real estate.

In fact, there are so many factors affecting the situation of properties in Pakistan that to list them all down would be quite hard. For that reason, this post only discusses a few major issues which have a role to play in the abysmal conditions locally. One of the biggest yet the most underrated factor is taxation. As of the moment, there is a staggering four percent tax on property transfer. Four percent may not seem too high a price to you but given the fact that souring inflation is dwindling the already diminutive buying power of people, four percent is too much.

Viewing this four percent in context with the high property prices makes it more unpleasant. Even areas, which did not exactly fit the tag of “the most-desirable localities to live in”, have ridiculously high property prices. Since these properties generally interest regular buyers from the middleclass, four percent tax on transfer hardly falls within their budget.

The second huge factor is the credit policy. Generally, people in Pakistan like to keep banks at an arm’s length. Those who do make the decision of taking loans for buying or renting property in Lahore or any other city of Pakistan, are absolutely horrified when they find out the high interest rates. If the buyers cannot take loans and have this meek buying power, who will invest in real estate?

Now one positive aspect for the realtors, investors and Pakistan property agents has been consistent rates of property. Inflation has a huge role to play in stabilizing the price. In fact, if and when viewed in context with inflation, property prices have rather been snubbed than increased (which in other words points towards a decline). With the uncertainty that has seemed to taken hold of the entire country, one cannot predict the future of Pakistan real estate but if the government wants to lend a helping hand to this sector then it can start with a daring reduction in taxes and a more relaxed credit policy.

The international economic crises are leaving significant impact on Pakistan. Inflation is growing with every passing day, it appears that no authorized body is assigned to keep a check on the rate lists and make an effort to keep it a under the threshold. The edibles are getting out of people’s reach the conditions are even worse at the public and private welfare institutes which are home to orphans, homeless children, women and older citizens.

It has become hard for people from lower class to maintain their integrity and at the same time exist in the society. Middle class is also facing serious threats of getting wiped out. The norms and trends of the middle class families, residing in cities, are changing at a faster pace. Women are bound to make a contribution in earning bread and butter for the family and retain its social status. The number of working women has increased many folds in the last one decade, looks like their hard work throughout school, college and university has finally paid off.

One thing however is noticeable; the big markets of every city are seen buzzing with people and the high street shops, chain stores, shopping malls and designer outlets continue to get their big chunks of revenue. The retails shops in smaller colonies, less fashionable markets and not so popular areas have reported a sheer drop in sales. Combined with power crises, lawlessness and blasts, the laborers and small business are facing the loudest music and consequently closing down and making thousands and thousands of people jobless. It is not hard for anyone to imagine the extent to which people can go in order to feed their family.

The gold has hiked to unbelievable extent and the value of rupee has dropped to the lowest limit of the history. Such elements have combined to give this impression that making an investment in Pakistan would be a bad move. The condition is even worse in the real estate sectors; the agents are mostly inactive, waiting for a better deal and stay idle for months. Unfortunately, the reduced activity in real estate sector is not bringing the value of real estate down, either. Both the sellers and buyers are desperate for the circumstances to get in their favor so that they can make the right move and make some good money.

Apparently it sounds farfetched to expect a robust improvement in real estate sector but who knows when and how the circumstances make Pakistan Properties valuable once again for the Pakistanis living across the globe.

Buying or selling a piece of land may sound a simple proposition but if you have never done it before, making a wise move requires lots of market research and genuine contacts. With the outskirts of every city becoming part of it and new housing projects launching every other day, lots of business activity should have been witnessed in Pakistan Real Estate. But the situation is rather reverse of what the circumstance demand. There could be thousands of factors resisting people to make investment in property sector but there are ways to become more confident as a buyer or seller of property.

Here are some pointers which will build your confidence while making an investment in real estate.

1. Look for an independent survey reports

There are various departments and private offices which release survey reports about specific areas of major cities and properties in Pakistan. Some real estate agents also conduct their own surveys and make them available to their prospect clients. These surveys help you get a neutral view of the area and also give an insight of the selling, buying and renting rates there.

1. Check Area profile

An area’s profile depends on the various factors including the major development projects in the area, important places located near it, status of roads and related infrastructure and also the very location of the property itself. If you are a buyer and there are chances that such facilities will be available soon in that area and, making that investment would be a good idea. And if you plan to sell the land, do it when all such promised facilities are available.

1. Study Market Trends

Some avid investors do get to know about the expected future value of certain area in advance and they are seen buying property in those areas in bulk. A good property dealer is also aware of or has an idea about how the future might value the property in particular area. Studying the buying and selling trends alone can give you enough confidence before buying or selling a piece of land.

1. Consult various sources

Just before the real estate slump in Pakistan, property dealers were making millions of rupees from each deal they would settle. We do not intend to advocate how profitable it is to become a property dealer but instead wish to give you an idea about how much amount a property dealer can keep from you. So when buying a piece of land or looking for Property for sale in Pakistan consult more sources, and more here means many. You can also advertise it in the newspaper and have an idea about what independent dealer or buyer may offer.

Conclusion!

It is always wise to hold your buying and selling decision keeping in view the economic and political conditions of the country. A good news forces people to make investment and the market rates temporarily go up. Similarly a bad news can give a real bad jerk to the overall market including the real estate. A good buyer or a seller is an informed and active one and has lots of contacts. The points discussed above can help you become one.

Lahore Development Authority lifted sanctions from more than 50 major boulevards of Lahore. These roads are now open for commercial activity. The steps, which were apparently taken to add to the development budget of Lahore, are going to benefiting the resident of those areas as well the investors. The property dealers and investors are hopeful to see some real activity in Pakistan Real Estate.

Lahore, the second largest city of Pakistan, witnessed a business boom in late 90s due to unrest in Karachi. Major companies and brand rolled their business from Karachi and shifted their setup to Lahore. The city offered highly conducive environment for business activities and in no time, designer brands, chain stores, shopping malls and commercial areas were seen buzzing with avid buyers. However his business activity was limited to certain posh areas of Lahore and consequently seized commercial development in other parts of the city.

Liberty, Fortress and Anarkali have always been the major commercial areas of Lahore but the first decade of this millennium saw the rising of various commercial areas in DHA, Gulberg, Cantt, Cavalry, MM Alam Road, Model Town, Alama Iqbal Town, Shadman and Jail Road to name a few. From immigration offices to famous pan shops, and from toy stores to fitness centres, you can now find every such facility in all of the known markets and commercial areas of the city. Therefore the value of Lahore Property in these areas observed a massive increase.

The darker side of giving liberty to certain areas surfaced right away but since the majority of stakeholders had nothing to protect in less developed areas, things were let the way they were. Within few years one could see the major difference between the areas linked to the commercially active zone and those with the less privileged ones. From basic infrastructure to health facilities and from education to law and order, every aspect of these areas mirrored the miseries inflicted upon them due to the dual standards of the authorities.

Well, bad days are over; LDA has given some leverage to 58 new boulevards and eased commercial restrictions on them. Some of these roads include Ferozpur Road (From Chungi to Sua-Asil),  College Road, Multan Road (Chowk Yateem Khana to Defence Road), Township ane the main  boulevards are of Gulshan-e-Ravi, Johar Town approach Road (Tajpura Mor to Shadbagh), and PIA Scheme.

The property dealers and investors of Lahore Real Estate are all active once again to get back in business and make the buyers and sellers help these areas get their well deserved share of prosperity and development.