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Islamabad is full of Malls

By Beluxe,

The city of Islamabad has witnessed a rapid increase in the number of malls over the past few years. While some argue that the increasing number of malls is a sign of economic growth and development, others believe that over-construction of malls has led to saturation in the market, and the city is now at risk of experiencing a retail bubble. In this blog, we will delve deeper into the phenomenon of over-construction of malls in Islamabad, its potential impact on the real estate market, and the reasons behind this trend.

Over the past few years, the number of malls in Islamabad has increased significantly, with new malls popping up in different areas of the city. From luxury malls to budget malls, the city has it all. According to a report by JLL, a global real estate services firm, the retail space in Islamabad has increased by 57% over the past five years. The report also states that the city now has a total of 2.2 million square feet of retail space, with more than 50% of it located in malls.

While the construction of new malls may seem like a good thing for the economy, over-construction can have negative consequences. One of the biggest risks of over-construction is the saturation of the market. When there are too many malls in an area, they start to compete with each other for customers. This can result in lower sales, lower rental yields, and an increase in vacancy rates. This can ultimately lead to a retail bubble, where the market becomes oversaturated, and many of the malls start to struggle.

Another potential impact of over-construction of malls is on the real estate market. Malls are a major driver of commercial real estate, and when the market is saturated, it can result in lower demand for commercial real estate. This, in turn, can lead to a decrease in real estate prices, and a reduction in the overall value of the market.

So why is over-construction of malls happening in Islamabad? One reason is the booming population of the city. As the population grows, the demand for retail space increases, and developers see an opportunity to capitalize on this demand. Additionally, some developers may be taking advantage of easy financing options, which can lead to a flood of new developments in the market.

In conclusion, the over-construction of malls in Islamabad is a complex issue with potential consequences for both the retail and real estate markets. While the trend may seem positive in the short term, it is important for developers and investors to consider the long-term impact of their decisions. With careful planning and regulation, Islamabad can continue to grow and develop without risking a retail bubble or a downturn in the real estate market.

CategoriesInformative Investment Market Trends Real Estate

7-Star Hotel Coming to Pakistan?

By Beluxe,

As the capital of Pakistan, Islamabad is known for its natural beauty, urban planning, and modern architecture. With the city’s growing importance in the region, there has been a rising demand for world-class luxury hotels. In recent years, there has been news of a potential 7-star hotel coming to Islamabad, which would be a first for Pakistan. Let’s explore the details and the potential impact of this project.

The proposed 7-star hotel in Islamabad is part of the larger Blue Area Development Project, which is being carried out by the Red Sun Group. The project is located in the heart of the city, near the Blue Area, and spans over 70,000 square meters. The hotel itself will have 25 floors and will be built at a cost of $350 million. It is expected to have 250 rooms, multiple restaurants, a spa, a rooftop swimming pool, and a helipad.

This project is significant for several reasons. Firstly, it would be the first 7-star hotel in Pakistan, marking a new era for the country’s hospitality industry. The hotel will bring in new standards of luxury and service that have not been seen before in the country. It will offer high-end services and amenities, which will cater to both local and international clientele.

Secondly, the hotel is expected to create employment opportunities for the local community, both during construction and operation. It will also generate business opportunities for local vendors and suppliers, boosting the local economy.

Thirdly, the hotel will help to establish Islamabad as a global destination for luxury travel. With its modern infrastructure, scenic landscapes, and cultural landmarks, Islamabad has the potential to attract a new wave of high-end tourists from around the world.

However, it is important to note that the success of this project will depend on a number of factors. The Red Sun Group will need to ensure that the hotel is built to international standards, with top-quality materials and finishing. They will also need to hire experienced professionals in the hospitality industry to manage the hotel and ensure that it provides the level of service that is expected of a 7-star establishment.

Moreover, the Red Sun Group will need to take into account the current economic and political situation in the country. Pakistan has been facing a challenging economic environment for some time, and the COVID-19 pandemic has further impacted the hospitality industry. Therefore, the group will need to carefully evaluate the market demand for a luxury hotel of this caliber and determine whether it is a viable investment in the current economic climate.

In conclusion, the proposed 7-star hotel in Islamabad has the potential to be a game-changer for Pakistan’s hospitality industry. It will bring in new standards of luxury, create employment opportunities, and establish Islamabad as a global destination for luxury travel. However, its success will depend on the ability of the Red Sun Group to execute the project effectively, taking into account the current economic and political situation in the country.

CategoriesInformative Investment Market Trends Real Estate

Red Lines to lookout for before Investing in Real Estate

By Beluxe,

Real estate projects are a significant investment for both individuals and businesses. It is important to be cautious and conduct thorough research before investing in any project. Here are some red lines to consider when evaluating a real estate project:

Legal Compliance: The first thing to consider when evaluating a real estate project is whether it is legally compliant. Ensure that the project has obtained all necessary permits and approvals from relevant government agencies. Failure to do so may result in legal complications in the future.

Location: Location is one of the most critical factors in real estate investment. Look for a project located in a prime area that is accessible and has potential for growth. Also, check the infrastructure and amenities available in the area, such as transportation, healthcare, schools, and shopping centers.

Developer Reputation: The reputation of the developer is crucial to consider before investing in a real estate project. Look for projects developed by reputable and trustworthy developers with a history of successful projects. You can check their track record by researching their previous projects and customer reviews.

Financials: Evaluate the financials of the project thoroughly. Review the financial projections and ensure that they are reasonable and achievable. Check for the transparency of the pricing model, payment terms, and any hidden fees. Also, examine the financial health of the developer and ensure they have the necessary funds to complete the project.

Amenities: Amenities are important in attracting buyers and tenants. Check the quality and range of amenities available in the project, such as parks, pools, gyms, and parking.

Timelines: Delays in project timelines can cause significant financial losses. Evaluate the developer’s timeline for completion and ensure that it is reasonable. Also, examine the developer’s track record in delivering projects on time.

Quality of Construction: The quality of construction is a significant factor in evaluating a real estate project. Evaluate the quality of materials used in construction, the quality of workmanship, and the durability of the building. Check for any defects or issues that may impact the project’s value in the future.

Market Trends: The real estate market is dynamic and subject to change. Evaluate the current market trends and forecast for the future. Look for projects that have potential for growth and are likely to appreciate in value.

In conclusion, investing in a real estate project is a significant financial decision that requires thorough research and evaluation. Consider the red lines mentioned above before investing in any project to ensure a successful and profitable investment.

CategoriesInformative Real Estate

Prefabricated homes are new trend in Pakistan

By Beluxe,

Prefabricated homes, also known as prefab homes or modular homes, have been gaining popularity in recent years as a sustainable, cost-effective, and time-efficient alternative to traditional construction methods. With Pakistan’s growing population and urbanization, the demand for affordable and reliable housing has become more urgent than ever. Prefab homes have the potential to meet this demand and revolutionize the country’s real estate market.

One of the main advantages of prefab homes is their affordability. Prefabrication allows for the use of standardized building components that can be mass-produced, reducing the cost of materials and labor. This cost-effectiveness can make it easier for first-time buyers and low-income families to invest in their own homes.

Another advantage of prefab homes is their time-efficiency. Traditional construction methods can take months or even years to complete, while prefab homes can be assembled and installed in a matter of weeks. This can be particularly advantageous in areas where housing shortages are most acute, allowing more homes to be built in a shorter amount of time.

Furthermore, prefab homes are often constructed with sustainable and eco-friendly materials, making them more environmentally friendly than traditional homes. This is an important factor as climate change and environmental concerns become increasingly important in real estate decisions.

One of the key reasons why prefab homes will have a major impact on Pakistan’s real estate market is the country’s growing population and urbanization. According to the Pakistan Bureau of Statistics, the country’s population is expected to grow from around 220 million in 2021 to 400 million by 2050. This population growth will result in a greater demand for housing, particularly in urban areas.

Additionally, many areas in Pakistan are prone to natural disasters, such as floods and earthquakes, which can cause significant damage to traditional homes. Prefab homes are often designed to be more durable and resilient, making them a more suitable option for areas prone to natural disasters.

In conclusion, prefab homes have the potential to significantly impact Pakistan’s real estate market. With their affordability, time-efficiency, and eco-friendliness, they provide an attractive alternative to traditional construction methods. As the country’s population grows and urbanization continues, the demand for affordable and sustainable housing will only increase, making prefab homes a viable and important solution.

CategoriesInformative Investment Real Estate

Why Buy an Apartment in Islamabad?

By Beluxe,

Investing in real estate can be a significant decision, especially when it comes to buying an apartment in a city like Islamabad. Islamabad, the capital city of Pakistan, offers a variety of housing options, and buying an apartment can be an excellent choice for several reasons. In this blog, we will explore why you should buy an apartment in Islamabad and provide some stats to support our claims.

Affordability:

One of the main reasons to buy an apartment in Islamabad is affordability. In Islamabad, apartments are comparatively more affordable than houses. The average price of an apartment in Islamabad ranges from PKR 4,000,000 to PKR 20,000,000, depending on the location, size, and amenities. According to Lamudi Pakistan’s Q1 2021 report, apartments are the most searched for property type in Islamabad, with 60% of property searches being for apartments.

Security:

Security is a crucial factor to consider when buying a property. Islamabad is considered one of the safest cities in Pakistan, with a lower crime rate than many other major cities. Apartments in Islamabad usually have security guards and CCTV cameras to ensure the safety of residents.

Amenities:

Apartments in Islamabad come with many amenities, including elevators, backup generators, and dedicated parking spaces. Some high-end apartment buildings also offer gyms, swimming pools, and community halls. These amenities can make life more comfortable and convenient for residents.

Location:

Islamabad has a central location, making it easily accessible from all parts of the country. Moreover, the city is well-planned, with wide roads, green spaces, and clean air. Most apartments in Islamabad are located in prime areas close to markets, hospitals, schools, and other important amenities, making them an excellent choice for families.

Investment:

Buying an apartment in Islamabad can also be a sound investment. The real estate market in Islamabad has been stable in recent years, with a steady increase in property prices. According to Zameen.com’s Q1 2021 report, property prices in Islamabad increased by 4.89% compared to the previous quarter. Investing in an apartment in Islamabad can provide a good return on investment in the long run.

In conclusion, buying an apartment in Islamabad is a wise investment decision. It offers affordability, security, amenities, and a central location, making it an excellent choice for families and investors. With stable property prices and a growing demand for apartments, investing in an apartment in Islamabad can be a profitable decision in the long run.

CategoriesInformative Real Estate

Why Zameen failed as a developer?

By Beluxe,

Zameen, a well-known real estate website, is primarily known for its property listings and real estate services. While the company has been successful in the online real estate space, it has faced challenges as a developer.

One of the key reasons for Zameen’s failure as a developer is its lack of experience in the construction industry. While the company has been involved in property management and marketing, it lacked the expertise required to take on large-scale development projects. As a result, many of its projects have faced delays and quality issues, leading to a loss of trust among buyers.

Another factor that contributed to Zameen’s failure as a developer is its over-reliance on investors to fund its projects. This approach can be risky, as it leaves the company vulnerable to changes in the market and shifts in investor sentiment. It can also lead to pressure to meet unrealistic timelines and can compromise the quality of construction.

Zameen has also faced criticism for its lack of transparency and communication with buyers. Many customers have reported feeling misled or uninformed about the progress of their projects and the quality of construction. This lack of transparency can erode trust in the brand and damage its reputation.

Despite these challenges, Zameen has continued to expand its presence in the real estate industry through partnerships and acquisitions. The company has also focused on improving its customer service and communication with buyers to rebuild trust.

In conclusion, Zameen’s failure as a developer can be attributed to its lack of experience, over-reliance on investors, and poor communication with buyers. While the company has faced significant challenges, it has the potential to bounce back by addressing these issues and focusing on its strengths in the online real estate market.

CategoriesInformative Real Estate

The Role of CDA & RDA in regulating Real Estate Projects

By Beluxe,

The real estate market plays a significant role in any country’s economy, and it is no different in Pakistan. Two regulatory authorities that oversee the real estate market in the country are the Capital Development Authority (CDA) and the Rawalpindi Development Authority (RDA). They have an essential role in managing the real estate market and ensuring that it operates fairly and transparently. In this blog, we will discuss the roles and responsibilities of these authorities in regulating the real estate market.

The Capital Development Authority (CDA) is responsible for regulating and managing real estate development in Islamabad, the capital city of Pakistan. It was established in 1960 and has the authority to approve, regulate, and monitor real estate projects. CDA has an essential role in promoting sustainable development, enforcing building codes and standards, and ensuring compliance with environmental regulations. The authority is also responsible for the planning and development of the city’s infrastructure, such as roads, water supply, and sewage systems.

The Rawalpindi Development Authority (RDA) is a regulatory body that oversees real estate development in the Rawalpindi district, including Rawalpindi city and its suburbs. RDA was established in 1989, and it has the authority to approve, regulate, and monitor real estate projects. The authority is responsible for ensuring that the real estate market operates fairly and transparently, and it is also responsible for enforcing building codes and standards.

The roles and responsibilities of the CDA and RDA are critical in the regulation of the real estate market in Pakistan. They ensure that real estate developers comply with building codes, safety regulations, and environmental standards. They also play an essential role in ensuring that real estate developers are transparent in their dealings with customers, which includes disclosing all relevant information about their projects.

One of the most significant challenges that the CDA and RDA face is dealing with fraudulent societies. Many developers, particularly in Rawalpindi and Islamabad, have been found to be involved in fraudulent practices. They often lure investors by offering low-priced plots in unauthorized and unapproved projects. Such practices lead to severe losses for investors who put their hard-earned money into these projects.

To tackle this issue, the CDA and RDA have increased their efforts to identify and crackdown on fraudulent societies. They have established complaint centers where the public can report any fraudulent activity, and they have also increased their monitoring of real estate projects.

In conclusion, the CDA and RDA play an essential role in regulating the real estate market in Pakistan. They ensure that real estate developers operate transparently and comply with building codes and safety regulations. However, these regulatory bodies need to be more vigilant and proactive in dealing with fraudulent societies. With effective regulation, the real estate market in Pakistan can thrive and provide a valuable contribution to the country’s economy.

CategoriesInformative Real Estate

German Destroyed Rawalpindi in WWII

By Beluxe,

HMS Rawalpindi was a British Royal Navy cruiser that was sunk during World War II. The ship was named after the city of Rawalpindi in present-day Pakistan and was launched in 1925. It served in the Atlantic, Mediterranean, and Indian Ocean during its operational life.

On November 23, 1939, the HMS Rawalpindi was on patrol duty in the North Atlantic when it encountered the German battleships Scharnhorst and Gneisenau. Despite being heavily outnumbered and outgunned, the Rawalpindi engaged the German ships in a fierce battle, hoping to delay them long enough for other British ships to arrive. However, after sustaining heavy damage, the Rawalpindi was sunk and 238 of its crew were killed.

The sinking of the HMS Rawalpindi was a significant event in the early stages of World War II, as it was one of the first major naval battles between Britain and Germany. The ship’s brave attempt to engage the German battleships in combat, despite being hopelessly outmatched, was widely praised as an example of British courage and determination in the face of overwhelming odds.

The sinking of the HMS Rawalpindi also highlighted the vulnerability of British shipping in the North Atlantic, and the need for greater protection and escort for convoys of merchant ships. The incident led to an increased focus on naval escort and protection, which helped to reduce the number of losses to German U-boats and surface ships during the war.

Today, the memory of the HMS Rawalpindi and its crew is honored by the Royal Navy and by the people of Rawalpindi, Pakistan. The ship’s legacy serves as a reminder of the sacrifices made by the men and women who served in the armed forces during World War II, and of the importance of courage, determination, and sacrifice in the face of adversity.

CategoriesInformative Investment Real Estate

Why Emaar failed in Islamabad?

By Beluxe,

Emaar is a multinational real estate development company that has operations in several countries, including Pakistan. In Pakistan, Emaar had launched two major projects, the Crescent Bay in Karachi and the Canyon Views in Islamabad. While the Crescent Bay project was a success, the Canyon Views project failed to meet the expectations of investors, which resulted in a loss of confidence in the company.

There were several reasons why Emaar failed in Islamabad:

Delayed Project Delivery:

The Canyon Views project was launched in 2005 and was supposed to be completed by 2009. However, due to various reasons, including litigation issues and lack of funds, the project was delayed for several years. This resulted in a loss of trust among investors, who had invested their money with the expectation of timely delivery.

Quality Issues:

There were reports of quality issues with the construction of the Canyon Views project. This included problems with the structural integrity of the buildings, as well as issues with the finishing and fittings.

Mismanagement:

There were allegations of mismanagement and financial irregularities on the part of the Emaar management in Pakistan. This resulted in a loss of trust and confidence among investors, who started to withdraw their investments.

Lack of Transparency:

There were reports of a lack of transparency in the operations of Emaar in Pakistan. This included issues with the allocation of plots, delays in the issuance of possession letters, and lack of clarity on the status of the project.

Political Instability:

The political instability in Pakistan, especially during the period of 2007-2009, also had a negative impact on the real estate sector. This resulted in a slowdown in the demand for real estate, which further compounded the problems faced by Emaar.

In conclusion, Emaar failed in Islamabad due to a combination of factors, including delayed project delivery, quality issues, mismanagement, lack of transparency, and political instability. These factors resulted in a loss of trust and confidence among investors, which ultimately led to the failure of the project.

CategoriesInformative Investment Real Estate

Hot Projects for Investors in Islamabad

By Beluxe,

Islamabad, the capital city of Pakistan, is a rapidly growing metropolis and an important hub for business, politics, and tourism. In recent years, there has been a surge in the development of hotels and resorts in Islamabad, catering to both business and leisure travelers. In this blog, we will highlight some of the upcoming hotels and resorts in Islamabad.

The Marriott Hotel:

The Marriott hotel in Islamabad is undergoing a massive renovation and expansion. The hotel will have more than 400 rooms and suites, making it one of the largest hotels in the city. The hotel will feature multiple restaurants, meeting rooms, and a state-of-the-art fitness center.

Hyatt Regency:

The Hyatt Regency in Islamabad is expected to open in 2025. The hotel will feature 400 rooms and suites, multiple restaurants, meeting rooms, a spa, and an outdoor pool. The hotel will be located in the Diplomatic Enclave, one of the most exclusive neighborhoods in Islamabad.

Hilton Garden Inn:

The Hilton Garden Inn in Islamabad is expected to open in 2022. The hotel will feature 150 rooms and suites, a restaurant, meeting rooms, and a fitness center. The hotel will be located in the Bahria Town neighborhood, which is rapidly developing into a major commercial and residential hub.

Zaver Pearl Continental Hotel:

The Zaver Pearl Continental hotel is currently under construction in the Blue Area neighborhood of Islamabad. The hotel will feature 300 rooms and suites, multiple restaurants, a spa, and meeting rooms. The hotel is expected to open in 2022.

Serena Hotel:

The Serena Hotel in Islamabad is one of the city’s most iconic hotels. The hotel is undergoing a major renovation and expansion, which will add more rooms, suites, and amenities. The hotel is known for its luxurious accommodations, excellent service, and beautiful surroundings.

Movenpick Hotel:

The Movenpick hotel in Islamabad is expected to open in 2023. The hotel will feature 150 rooms and suites, multiple restaurants, meeting rooms, and a fitness center. The hotel will be located in the Bahria Town neighborhood.

In conclusion, the hospitality industry in Islamabad is growing rapidly, with many new hotels and resorts opening in the near future. These hotels and resorts are not only adding to the city’s charm and beauty but also providing much-needed accommodations and services to the growing number of visitors to the city.