- Financial markets showing signs of recovery after IMF nod to a $3 billion bailout package but real estate is yet down
- Islamabad's real estate market is still waiting for traders to return from Eid holidays
Islamabad: While the country's financial markets are showing historic gains after the International Monetary Fund's (IMF) approval of a $3 billion bailout package, optimism has yet to reach the real estate sector.
Last Friday, Nathan Port, the IMF Mission Chief to Pakistan, announced a staff-level agreement with the country, leading to the release of the substantial loan.
Read More : Pakistan Secures $3 Billion IMF Loan
In response, the stock exchange witnessed a remarkable surge of 2,231 points as trading resumed on Monday after the extended Eid al-Adha holidays. The rupee also showed a remarkable recovery of Rs. 11, settling at 274.5 against the US dollar on Wednesday.
Pakistan's real estate market is still without any signs of recovery. Despite the end of the official Eid holidays on Monday, Islamabad's real estate market presents a desolate picture. Khalid Butt, a real estate agent, said the Bahria Enclave real estate market was quiet. Mr. Butt expressed that although asking prices have increased by 30% compared to last year, finding buyers in the market is difficult. Talking about the latest prices, he said a commercial plot of 4 Marla is available for Rs 4 crore plus in sectors A and B, and a 5 Marla plot in Avenue C is priced between 5-7 crore depending upon the location," Mr. Butt said.
Being the capital, Islamabad serves as the focal point of most of the real estate transactions across the country. With over 4,000 real estate agents, the G-11 Markaz, and adjacent markets of F-11 stand as the hub of Islamabad's real estate market.
On Wednesday, most offices in G-11 remained closed, awaiting the traders to return from their hometowns after Eid vacations. Junaid Dar, Managing Partner of Grow Marketing, emphasized the stagnancy in the housing societies' overall trade.
Property sector has been witnessing a recession-like situation since the Parliament ousted the PTI government last year. Overseas Pakistanis, the major investors in local real estate, stopped investing due to political instability. Increasing dollar values also provided them with a safe and hassle-free investment opportunity.
Mr. Dar said the market was still closed, with a few offices open. He said that before the Eid holidays, most of the private housing societies offered discounts to existing customers last month, but the response was lukewarm. He said the overall market was down. "The 5-marla plot file of Malik Majid's most hyped housing society, Faisal Town-2, with a down payment of Rs 595,000 is available for Rs. 450,000. Capital Smart City, Metro City Gujjar Khan, Parkview City, Blue World, and Kingdom Valley also came with attractive discount offers, but buyers remained unresponsive.
Metro City Gujjar Khan and Faisal Town-2 are the two private housing schemes, that were launched with great media hype. Soon, the Rawalpindi Development Authority declared both the schemes illegal. Both the schemes has yet to start proper development. Bilal Hussain, a real estate consultant for the Blue World Housing Society, expressed a cautiously optimistic view, suggesting positive signs in the market. He mentioned that Blue World was among the few housing societies being actively traded in the market. He anticipated trading to resume in all major housing sectors starting from the following week. The real estate markets of Pakistan's other cities also reported same negative trend.
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