HM replied on Thursday, July 27, 2017 05:59 AM
Rationally speaking, everything tells you that is just not making sense! What are the businesses that can populate that many commercial plots in a small area, when the new trends is for mega-malls (planned for Phase 6 + 8), and other phases have 100s of commercial too. The retail brands that once flocked to Y block now only focus on Packages etc. Phase 4 DHA has no major brands present and the few that were have left or are packing up. Phase 6 MB is just for dealers offices. So just what are those businesses that will pay massive rents for Phase 6, 7 and 9, that can justify the current or future prices? The only use one might see is that they are sold floor by floor as flats for residence, as in Karachi. If the Knowledge Park of 850 acres is made, that will have a lot of commercial space to lease out as well.
However, this is Pakistan. None of the markets work on fundamentals and logic! Phase 4 has no brands but still prices hold strong! The past has never worked on this logic, and those who ignored that have been rewarded again and again. Those that were more cerebral in their approach lost out.
The inflection point for property pricing in future is when Pakistan will reach a maturity where people (living in Pak and abroad) have alternative safe places to park/invest surplus funds, and rental yields have a co-relation in determining price, then fundamentals of supply & demand will finally correspond to pricing. For now they don't, and may not for decades to come unless there is a revolutionary level of change in governance.
But if the transparency and accountability (taxes, breaking monopolies, insider trading, reducing disparity, etc) that so many dream of do come about, then people must realize that these kind of havens/bubbles will deflate. These are socio-economic issues and behaviours that have great bearing on property prices. That is why there isn't a straight or surefire answer to your apparently straightforward question. |
