Skyscrapers with luxurious living style that were once prominent in media because of heavy advertisement have disappeared from the market owing to the poor law and order situation of the country.
The high rising housing projects had been planned at prime living locations near seaside or adjacent with posh localities are unfortunately now dreams for the people who invested their money in a hope to get their apartment in the mega housing projects.
These housing projects brought by multinational and private construction companies, leading developers and renowned marketers few years ago amid much attraction to gain attention of investors and elite class of the society.
Creek Marina, Crescent Bay of Emaar and Creek Vista have been planned in Karachi and The Centaurus Residence, Canyon Views and Goldcrest were designed in Islamabad.
The prices of housing projects were astronomical and beyond the affordability of many in the elite class even. The small housing unit has cost of Rs 100 million depending on the location and area whereas the maximum price of housing units crosses Rs 350 million.
These condominiums have thousands of housing units aimed to attract foreigners, overseas and rich class Pakistanis when the property witnessed boom in the country and every investment multiply returns manifold in short period of time, analysts of the real estate market said.
They said that a couple of projects have gained tremendous success and booking of apartments once these were launched back in 2005 when the high-end markets mostly recognized as DHA societies have become saturated in the metropolises.
Within short period of time, the foreign developers and construction companies having found potential of high profits entered Pakistan property market one after another.
These housing projects gained tremendous bookings and success initially but failed miserably to retain interest of the investors and people after terrorist attacks engulfed the country with political instability continued to hit the investors’ interest in Pakistan since 2008.
The situation of law and order started worsening and become order of the day in all big cities including capital of the country, which forced foreign and overseas investors to retain their money in different investment avenues, Ovais Sohail, a renowned analyst at Arif Habib brokerage house said.
Even the present government could not rekindle the hopes of the investors but made them more reluctant after economy collapsed in its setup, he said. The investors are very cautious and do not pour their money in the market with full of risks.
Meanwhile, the global economic meltdown further worsened the situation and overseas capital inflows started shrinking sharply in the past two years.
The companies’ worries become multiply when investors started pulling out their money from all these projects, Ovais said. “These projects have merely 20 percent investors who are stuck up and compelled to wait for long.”
Analysts said that these projects may complete in the future but are likely to take long period from their given deadlines. The chances of companies default or closure of projects could not be ruled out.
The property market in overall country witnessed lukewarm activities because of lack of investors’ interest in the real estate business. The prices on lands have fallen sharply and transactions are limited to few high and medium-end housing societies, banglows and apartments.
Majority of the investors have capitalized their money in the DHA and Bahria societies and commercial projects. Few of them pour their capital in alternative ventures like gold, investment bands and stock and commodity exchange.
The commercial projects such as hotels and shopping center though witnessed exceptional response from the investors and traders particularly in the densely populated Karachi.
Dolmen Mall, Sofitel Towers and Shopping Plazas, JS shopping Centers and few other projects situated at Saddar and Tariq Road have witnessed tremendous success owing to high demand of retail business of clothes and footwear brands in the city.
The booking of various shops and suits has recorded almost 90 percent in these projects. And the prices vary from Rs1.5 million to Rs 300 million depending on the area, location and floor of the shop.
These projects have been completed 60 to 80 percent and become operational in next year with satisfactory pace of under-construction works are going on.
According to the analysts he demand of commercial property has picked up though but it has touched its saturated point in Karachi for quite few years. Nevertheless, the demand could reignite with the changing economic, political, law and order situation of the country.
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