CMY was very active in the market and was dealer at that Time I will Like if request him to declassify inf and share with us why 2005 and 2006 Blood shed Happened, At that Time Govt was strong there no economic instability, There were no Tax of FBR issue, I understand that prices Tripled in 2000 to 2004 But that also happened in past Though Not that acute.
Today we see the Holders even investors are holding. But why in 2006 People sold their investments at less than 1/2 price.
The Only thing which comes to my mind is that there were big investors or political corruption which led to crash, which hopefully should not happen now.
M Arshad AliŽ replied on Wednesday, August 31, 2016 12:49 PM
Dear Brother, property crashed badly in December 2007, on the death of BeNazir Bhutto, before that property was stable and I was holding 3 plots.BeNazir Bhutto assassination led the blood shed as well as fall in property |
CMY replied on Wednesday, August 31, 2016 04:36 PM
Habib bhai due to health issues dont have time for long discussions so leaving a short note.
Our website was online from 2004 but we were not dealers in 2005 till end of 2005. Lahore Real Estate opened doors in Dec 2005 in very weak property market.
Main reason of rise was very low interest rates. People were not putting money in banks and industrialists were taking huge loans on factories at very low rates to buy 30 50 or 100 plots at time.
Every one including rahri ban was buying property without looking at past record of developers. Paper projects were gaining 1 lac each day. 100s of fake projects were booked in days in Gwadar not one plot delivered .
On paper every one was making big money eacg day. Hands kept changing. Only Lahrerealestate.com and couple sites were available. We tried our best to calm or stop people but when some one was gaining one lac on file each day there was no stopping. We were considered idiots for stopping people from making money just like today :)
When reverse gear started in May 2005 no buyers were available because properties that were gaining one lac eac day started to lose
Peak of market was April 2005. Massive rise in days time and equally massive steep fall in days time too. By time Lahore Real Estate opened doors market had very big correction.
Sorry I will have to go for an appointment so will continue post after I am back. |
Salman.AŽ replied on Wednesday, August 31, 2016 07:20 PM
CMY sb.
We all would love to hear your story of 2005 CRASH. Why? When?How?
This will help us evaluate the current situation.
Hopefully you will compare 2005 with 2016 and show us a clear picture of what is happening in Pakistan Real Estate Market. |
Jameel MughalŽ replied on Wednesday, August 31, 2016 08:03 PM
Crash Means significant discount on peak level
In Prices Crashed near 1999 when Musharraf started recovering of money form Corrupt Politicians, At that time prices fell to almost 50% of peak level, at the same time Pak Rupee was lowest 17/Dhs NSS rates were highest and soon Musharraf realized that Money cant be recovered and will create more panic than help to economy then onwards things stabilized. Rupee also remained stable 15 to 16/Dhs for next 9 years.
2005 to 2007 Crash was Multifactorial, The most important factors were Previous Hype, and "with in DHA Factors" I will not go in details, But influential people got Plots just on development charges rates. High levels were involved. When these Grabbers Thought that Govt is falling and accountability could be done they offloaded at throw away prices, which drowned all the market to almost 40% of Peak level in some inflated sectors. Then DHA Silently did Clean up and top Notch was Changed.
2016 we may see only 15 to 20% Correction and few years Stagnation, situation like 2005 to 7 is not expected |
Onlooker replied on Friday, September 2, 2016 02:02 AM
Thanks for starting a good discussion.
There are many differences between Lahore Property Market of 2006 and that of today. At that time the market was way over-heated than today, all assets types (Stocks, property) globally were in bull run and reckless bank financing was available to fund speculation. The 2016 is very different. Bull run is on perhaps only in Pakistan and with a good reason - a better government in place after relatively poor governance - so investment catching up perhaps. The run seen in past one year or so perhaps got triggered after Pak China Corridor was seen taking shape. The current situation may just be a temporary breather or a correction. |
