Some people are expecting plot prices to multiply manifold in the next ten years. Thinking about it I am puzzled. Just take the example of Rwp/Isb. Bahria Town Phase 7, 8 and Safari Valley can accomodate 500,000 people. DHA Valley and surroundings can accomdate 1,500,000 people. The largest scheme in zone 2 B-17 and surroundings can accomdate 50,000 people. Besides these there are many other schemes planned. So are we really expecting the population of ISb/Rwp to double within the next 10/15 years? Can someone tell me how plot prices can still continue to outperform the economy.
Khan replied on Sunday, June 26, 2011 05:03 PM
There is only one word "speculation." It is not the market forces but mainly the speculators who keep pushing the market up. If you ask in any housing society (except Bahria) about the sale/purchase, you will be surprised to know the number of transfers. The market is stalled at the moment in Isb/pindi. The rates are high but it is difficult to find the genuine buyer. I think the situation is not good for all people related with property business. Thus, I think in near future, there will be more honest and hard working dealers compared to now. |
Azad K replied on Sunday, June 26, 2011 08:58 PM
I agree that speculation has been a big problem although not so much in the present economic environment. Agents are asking for unrealistic prices when there are few purchasers out there and even those that out there are demanding discounts in order to buy otherwise they can put their money to alternative uses, considering that property prices are not expected to rise in the next couple of years.
True population is growing particularly in the cities and I welcome new schemes as they will contain plot prices in the future and allow many middle class families to own their own home in the future. However in the next 15 years population will increase by 40% and plots will increase by more 100%, Therefore there will be excess supply, therefore plot prices will not rise as much as they have in the last ten years mainly due to speculation. |
