CategoriesInformative Investment Market Trends Real Estate

Pros & Cons of Open File Trading

Open file trading is a method of real estate trading in which the seller of a property hands over the original documents related to the property to the buyer before the full payment is made. In Pakistan, open file trading is a common practice, especially in the sale of plots in housing societies.

Here are some key statistics related to open file trading in Pakistan:

  • According to a report by Jang Group and Zameen.com, open file trading accounted for approximately 75% of all real estate transactions in Pakistan in 2020.
  • The same report found that open file trading was most common in the sale of plots in housing societies, with over 90% of all such transactions using this method.

Pros of open file trading:

  • Faster transactions: Open file trading allows for faster transactions as the buyer can begin the process of transferring the property ownership without having to wait for the full payment to be made.
  • Convenience: Since the buyer has access to the original documents related to the property, they can begin the process of transferring ownership without having to go through the hassle of requesting documents from the seller.
  • Flexibility: Open file trading allows for more flexibility in terms of payment schedules, as the buyer can make partial payments while the transfer of ownership is being processed.

Cons of open file trading:

  • Risk of fraud: There is a risk of fraud in open file trading, as the buyer may not make the full payment after receiving the original documents. This can leave the seller with no recourse to recover their losses.
  • Lack of legal protection: Open file trading is not legally recognized in Pakistan, which means that buyers and sellers do not have the same level of legal protection as they would in a traditional real estate transaction.
  • Lack of transparency: Open file trading can lack transparency, as buyers may not have access to all the information they need to make an informed decision about the property.

In conclusion, open file trading is a common practice in the Pakistani real estate market, especially in the sale of plots in housing societies. While it offers some benefits in terms of convenience and flexibility, it also carries some risks in terms of fraud and lack of legal protection. It is important for both buyers and sellers to carefully consider the pros and cons of open file trading before engaging in this type of real estate transaction. It is also advisable to seek legal guidance to ensure that the transaction is conducted in a safe and secure manner.

CategoriesInformative Market Trends Real Estate

Off Plan vs. Ready Properties in Pakistan

In Pakistan’s real estate market, there are two primary types of properties available: off-plan and ready properties.

Off-plan properties are those that are sold by developers before they are built or completed. Buyers typically pay a deposit upfront and then make additional payments over time as the development progresses. Once the development is completed, buyers receive ownership of the property.

Ready properties, on the other hand, are those that are already built and available for immediate purchase and occupancy.

In recent years, there has been a growing trend towards off-plan properties in Pakistan, particularly in major cities like Lahore, Karachi, and Islamabad. One reason for this trend is the high cost of ready properties, which can be prohibitively expensive for many buyers. Off-plan properties are often sold at a lower price point, making them more accessible to a wider range of buyers.

According to data from Zameen.com, one of Pakistan’s leading real estate websites, there has been a significant increase in demand for off-plan properties in recent years. In 2019, off-plan properties accounted for 53% of all property searches on the site, up from 44% in 2018. Meanwhile, searches for ready properties decreased from 56% in 2018 to 47% in 2019.

However, it is important to note that off-plan properties can also come with certain risks. Delays in construction or other issues with the development process can result in significant delays in delivery, which can be frustrating for buyers. Additionally, there is a risk that the developer may not complete the project as planned, which can result in buyers losing their investment.

Ultimately, the decision between off-plan and ready properties will depend on a buyer’s individual circumstances, preferences, and risk tolerance. Buyers should carefully weigh the pros and cons of each option and conduct thorough due diligence before making a decision.

CategoriesMarket Trends Real Estate

2023 Real Estate Market Forecast:

It is important to note that real estate markets are influenced by a variety of factors, including economic conditions, political stability, and social trends, among others. With that being said, here is an overview of the current real estate market trends in Pakistan:

Overall growth: Despite the challenges faced by the real estate market in recent years, the sector has shown overall growth in Pakistan. According to a report by JLL Pakistan, the real estate market in Pakistan is expected to grow at a compound annual growth rate of 4.2% from 2020 to 2024.

Increased demand for affordable housing: The demand for affordable housing is expected to increase in Pakistan in the coming years, as more people move from rural to urban areas in search of employment opportunities. This trend is likely to drive growth in the real estate market, particularly in the low- to mid-income segments.

Focus on sustainability: The demand for sustainable and eco-friendly properties is expected to increase in Pakistan, as more people become aware of the environmental impact of traditional construction methods. Developers who prioritize sustainability are likely to see increased demand for their properties in the coming years.

Shift towards digitalization: The COVID-19 pandemic has accelerated the trend towards digitalization in the real estate sector, with more people using online platforms to search for properties and conduct transactions. Real estate companies that invest in digital platforms and marketing strategies are likely to have a competitive advantage in the market.

Impact of government policies: Government policies, such as the construction package introduced in 2020, are likely to have a significant impact on the real estate market in Pakistan. The package aims to boost the construction sector by providing tax incentives and other benefits to developers, which could lead to increased activity in the market.

Overall, the real estate market in Pakistan is expected to show growth in the coming years, driven by factors such as increased demand for affordable housing and sustainable properties, as well as the shift towards digitalization. However, the market is also likely to be influenced by government policies and other external factors, which could impact its trajectory. As always, it is important for real estate professionals to stay up-to-date with the latest trends and market developments in order to make informed decisions.

CategoriesInvestment Market Trends Real Estate

Why buy a house in Islamabad?

Islamabad, the capital city of Pakistan, is known for its beautiful landscapes, modern infrastructure, and high standard of living. It’s a city that is rapidly growing and attracting people from all over Pakistan, as well as from abroad. If you’re considering buying a house in Islamabad, there are several compelling reasons why it’s a wise investment. Let’s explore some of the key reasons and back them up with relevant stats.

Growing Real Estate Market

The real estate market in Islamabad has been consistently growing in recent years, with property prices on the rise. According to Zameen.com, Pakistan’s largest property website, property prices in Islamabad increased by 10.24% in 2021. This indicates that investing in property in Islamabad is a wise decision, as it’s likely to yield a good return on investment in the long term.

High Standard of Living

Islamabad is known for its high standard of living, which makes it an attractive location for people to settle down and buy property. The city has well-developed infrastructure, excellent healthcare facilities, quality education institutions, and a low crime rate, making it a safe and comfortable place to live. According to Numbeo, a website that provides quality of life data, Islamabad ranks as the second-safest city in Pakistan and has a cost of living index lower than Karachi and Lahore.

Investment Opportunities

Apart from the residential sector, there are several investment opportunities in Islamabad that can help you generate a substantial return on investment. According to a report by JLL, a global real estate consultancy firm, the demand for commercial properties in Islamabad is on the rise, which indicates a growing business environment in the city. There are also opportunities to invest in the tourism and hospitality sectors, with the city’s growing popularity as a tourist destination.

Booming Construction Industry

The construction industry in Islamabad is booming, with several new housing societies and commercial projects being developed across the city. According to a report by the National Highway Authority of Pakistan, the construction industry in Islamabad is expected to grow by 8% in 2022. This indicates that there will be an increased demand for property in the city, which makes it a good time to invest in real estate.

Growing Population

The population of Islamabad is rapidly growing, which indicates a higher demand for residential properties. According to the Pakistan Bureau of Statistics, the population of Islamabad is projected to reach 2.5 million by 2025. This means that there will be a growing demand for housing, which makes it a good time to invest in property in the city.

In conclusion, buying a house in Islamabad is a wise investment due to the city’s growing real estate market, high standard of living, investment opportunities, booming construction industry, and growing population. The city offers several benefits to its residents, making it an attractive location to settle down and invest in property. By considering these factors and conducting proper research, you can make a smart investment decision that will yield long-term benefits.

CategoriesInformative Investment Market Trends Real Estate

Why Real Estate Projects Failed in Gujar Khan?

 them, to avoid repeating the mistakes of the past.Gujar Khan is a small city located in Punjab, Pakistan. Over the past few years, there have been several real estate projects that have been launched in the city with the promise of providing modern and affordable housing to people. Unfortunately, many of these projects have failed to meet their objectives, leaving investors and homebuyers with significant losses. Here are some reasons why real estate projects in Gujar Khan have failed:

Lack of infrastructure: One of the primary reasons for the failure of real estate projects in Gujar Khan is the lack of infrastructure. The city has a poor road network, limited access to public transportation, and inadequate water and electricity supply. This makes it difficult for people to commute to and from the city and makes it challenging for real estate developers to provide modern amenities to residents.

Insufficient market research: Many real estate developers in Gujar Khan failed to conduct proper market research before launching their projects. As a result, they failed to understand the needs and preferences of the target market and could not offer properties that met the expectations of potential buyers.

Unreliable developers: Some real estate projects in Gujar Khan were launched by developers with a poor track record or reputation. This lack of credibility led to a lack of trust among potential buyers and investors, which made it difficult for developers to raise funds and complete their projects.

Regulatory issues: In some cases, regulatory issues and red tape made it difficult for real estate projects in Gujar Khan to obtain necessary approvals and permits. This further delayed the completion of projects and discouraged potential buyers and investors from investing in the projects.

Lack of marketing and branding: Finally, some real estate developers in Gujar Khan failed to adequately market and brand their projects. This led to a lack of awareness among potential buyers and investors, which made it difficult for them to generate interest and sales.

In conclusion, the real estate projects in Gujar Khan failed due to a combination of factors including lack of infrastructure, insufficient market research, unreliable developers, regulatory issues, and lack of marketing and branding. These factors should serve as a lesson to developers in the region to conduct thorough research and plan their projects carefully before launching

CategoriesInformative Investment Market Trends Real Estate

Chakbeli is Crown Jewel of Rawalpindi

Chakbeli is an emerging real estate location in Islamabad that is gaining a lot of attention in the real estate market. Located on the outskirts of Islamabad, Chakbeli is considered a crown jewel in the real estate market due to its location, infrastructure, and future potential. In this blog, we will explore why Chakbeli is a crown jewel in the real estate market of Islamabad with stats to support its potential.

Location of Chakbeli:

Chakbeli is located on the eastern outskirts of Islamabad, just a few kilometers away from the Islamabad Expressway. The location of Chakbeli provides easy access to the twin cities of Islamabad and Rawalpindi, making it a popular choice for people looking for a convenient and peaceful living environment.

Infrastructure in Chakbeli:

One of the key factors that make Chakbeli a crown jewel in the real estate market of Islamabad is its infrastructure. Chakbeli has modern infrastructure facilities such as electricity, water supply, and road networks that are well connected to the rest of the city. The area is also equipped with modern amenities such as parks, playgrounds, shopping centers, and educational institutions, making it an ideal location for families.

Potential of Chakbeli:

Chakbeli has enormous potential in terms of real estate development. The area is still in the development phase, which means that there is plenty of room for growth and expansion. The government has also announced several development projects in the area, including the construction of a new hospital, the expansion of the Islamabad-Rawalpindi Metro Bus Service, and the establishment of a new industrial zone. These projects are expected to boost the real estate market in the area, and as a result, property values are likely to appreciate in the coming years.

Stats on Chakbeli’s Real Estate Market:

According to data from Zameen.com, one of Pakistan’s leading property websites, Chakbeli is a rapidly growing real estate market. The area has seen an increase in the demand for both residential and commercial properties over the past few years. In 2021, the average price of a 1 kanal residential plot in Chakbeli was around PKR 30 million. The average price of a 5 marla residential plot was around PKR 10 million. Similarly, the average price of a commercial plot in Chakbeli was around PKR 300 million in 2021.

Conclusion

Chakbeli is a crown jewel in the real estate market of Islamabad due to its location, infrastructure, and potential for growth. The area has seen a surge in demand for both residential and commercial properties in recent years, and the government’s commitment to development in the area is expected to boost the real estate market even further. With its convenient location, modern infrastructure, and future potential, Chakbeli is quickly becoming one of the most sought-after locations for real estate investment in Islamabad.

CategoriesInformative Investment Market Trends Real Estate

Impact of the Margalla Road Expansion Project on Real Estate in Islamabad

The Margalla Road Expansion Project is a major infrastructure development that is expected to have a significant impact on real estate in Islamabad in 2023. The project is expected to be completed in the coming year, and its impact on the real estate market is likely to be felt in various ways. In this blog, we will explore how the Margalla Road Expansion Project is expected to impact real estate in Islamabad in 2023.

Location of the Margalla Road Expansion Project:

The Margalla Road Expansion Project is an important infrastructure development that is taking place in Islamabad. The project involves the expansion of Margalla Road, a major thoroughfare in the city that connects the Islamabad Highway with the Margalla Hills. The road expansion project will cover a distance of around 12 kilometers and will involve the construction of additional lanes, flyovers, and bridges.

Impact of the Margalla Road Expansion Project on Real Estate in Islamabad

The Margalla Road Expansion Project is expected to have a significant impact on real estate in Islamabad in 2023. Here are a few ways in which the project is expected to impact the real estate market:

Property Prices in the Surrounding Areas:

The expansion of Margalla Road is likely to increase accessibility to the surrounding areas, which could result in an increase in property prices in these areas. Areas like F-10, F-11, E-11, and G-11, which are located close to Margalla Road, are likely to see a significant increase in property prices as a result of the expansion project.

Increased Demand for Housing in the Surrounding Areas:

The expansion of Margalla Road is also expected to result in an increase in demand for housing in the surrounding areas. The increased accessibility to these areas will make them more attractive to potential homebuyers, resulting in a surge in demand for housing in these areas.

Development of Commercial and Retail Spaces:

The expansion of Margalla Road is also expected to lead to the development of new commercial and retail spaces in the surrounding areas. The increased accessibility to these areas will make them more attractive to businesses, resulting in an increase in the development of commercial and retail spaces in the area.

Improvement of Infrastructure:

The expansion of Margalla Road is expected to improve the infrastructure in the surrounding areas. This includes better road connectivity, improved transportation, and better access to basic amenities such as water and electricity. This improvement in infrastructure is likely to make the surrounding areas more livable and attractive to potential homebuyers.

Conclusion

The Margalla Road Expansion Project is a major infrastructure development that is expected to have a significant impact on real estate in Islamabad in 2023. The project is likely to result in an increase in property prices, an increase in demand for housing in the surrounding areas, and the development of new commercial and retail spaces. The improvement in infrastructure is also expected to make the surrounding areas more attractive to potential homebuyers. Overall, the expansion of Margalla Road is expected to be a positive development for the real estate market in Islamabad.

CategoriesInformative Market Trends Real Estate

Market Analysis: 2023

Pakistan’s real estate market has been through some ups and downs over the years, but it has shown steady growth in recent times. The country has a population of around 220 million people, and with a growing middle class, there is a high demand for affordable housing. In this blog, we will discuss the current trends, stats, and figures of the real estate market in Pakistan.

Property Prices:

Property prices have increased significantly in the last decade, making it difficult for many people to buy a home. According to the State Bank of Pakistan, property prices have risen by over 120% in the last 10 years. However, with the government’s initiatives to promote affordable housing, the property market is expected to stabilize in the coming years.

Rental Yield:

The rental yield in Pakistan varies between 3% to 5%, depending on the location and type of property. Lahore and Islamabad are the cities with the highest rental yields in Pakistan. The rental yield in Lahore is around 4.5%, whereas in Islamabad, it is around 4%. This indicates that investing in rental properties in these cities can provide a good return on investment.

Real Estate Investment Trusts (REITs):

Real Estate Investment Trusts (REITs) were introduced in Pakistan in 2016, and since then, they have become popular among investors. The aim of REITs is to provide small investors with an opportunity to invest in real estate without actually owning the property. According to a report by JCR-VIS Credit Rating Company, the net assets of REITs in Pakistan increased by 30% in 2020, indicating their growing popularity.

Government Initiatives:

The Pakistani government has introduced several initiatives to promote affordable housing and boost the real estate market. The Naya Pakistan Housing Program is a flagship initiative launched by the government to provide affordable housing to low-income families. The government is also offering tax incentives to real estate developers to encourage them to invest in affordable housing projects.

Impact of COVID-19:

The COVID-19 pandemic had a significant impact on the real estate market in Pakistan, with property sales and rental yields declining. However, the market has shown signs of recovery, with an increase in property sales and rental yields in recent months. The pandemic has also led to a shift in preferences, with people preferring homes with outdoor spaces and home offices.

In conclusion, the real estate market in Pakistan has shown steady growth in recent times, with the government’s initiatives to promote affordable housing and the introduction of REITs. However, property prices remain high, making it difficult for many people to buy a home. Nonetheless, the market has a lot of potential, and with the right investments, it can provide good returns for investors.

CategoriesInformative Investment Market Trends Real Estate

Evolution of Real Estate Market in Pakistan

The real estate market is constantly evolving, and there are several trends that are expected to shape the future of the industry. In this blog, we will discuss some of the most important trends that are likely to impact the real estate market in the coming years.

Technology: Technology is already playing a significant role in the real estate industry, and this trend is expected to continue in the future. From virtual property tours to online property management, technology is making it easier for buyers, sellers, and real estate professionals to interact and conduct business. The use of artificial intelligence, machine learning, and big data is also expected to increase, helping real estate professionals make better decisions and providing buyers with more personalized experiences.

Sustainable and eco-friendly construction: As awareness of environmental issues continues to grow, sustainable and eco-friendly construction is becoming increasingly popular. This trend is expected to continue in the future, with more and more developers incorporating green features into their projects, such as solar panels, green roofs, and energy-efficient lighting.

Co-living and co-working spaces: With the rise of the gig economy and remote work, co-living and co-working spaces are becoming more popular. These spaces provide a flexible and affordable option for people who need temporary housing or office space. The demand for these types of spaces is expected to grow in the future, particularly in urban areas.

Smart homes: Smart home technology is already becoming more common in new construction, and this trend is expected to continue in the future. From smart thermostats to voice-controlled lighting, homeowners are looking for ways to make their homes more convenient and energy-efficient.

Aging population: As the population continues to age, the demand for age-friendly housing is expected to increase. This includes features such as accessible design, home automation, and health monitoring technology.

Micro-housing: As urban areas become more crowded and expensive, micro-housing is becoming a popular option for people who want to live in the city without breaking the bank. Micro-housing units typically range from 100 to 400 square feet and provide a minimalist and affordable option for city dwellers.

Health and wellness amenities: As people become more health-conscious, the demand for health and wellness amenities is expected to increase. This includes features such as fitness centers, yoga studios, and healthy dining options.

Modular construction: Modular construction is becoming more popular as a way to reduce construction time and costs. With modular construction, buildings are constructed off-site in a factory and then assembled on-site, reducing the need for on-site labor and minimizing construction waste.

Real estate investment trusts (REITs): Real estate investment trusts (REITs) are becoming an increasingly popular way for investors to access the real estate market. REITs allow investors to own shares in real estate assets without having to manage the properties themselves.

Urbanization: The trend towards urbanization is expected to continue, with more and more people moving to cities in search of jobs, cultural experiences, and a vibrant social scene. This is expected to drive demand for urban real estate, particularly in areas with good transportation links and walkable neighborhoods.

In conclusion, the real estate market is constantly evolving, and these trends are just a few of the factors that are likely to shape the industry in the coming years. Real estate professionals who are able to anticipate and adapt to these trends are likely to be successful in the long term.

Nishaan Housing Private Limited: A bad real estate project in Islamabad, Pakistan.
CategoriesInformative Investment Market Trends Real Estate

Why Nishaan is a bad project?

Nishaan Housing is a real estate project located in Islamabad, Pakistan. While there are many real estate projects in Islamabad that offer excellent investment opportunities, Nishaan Housing is not one of them. In this blog, we will discuss why Nishaan Housing is a bad project for investment.

Lack of Development: Despite being launched several years ago, the project has seen very little development. The infrastructure in the project is poor, with no proper roads, sewage systems, or other basic amenities. This lack of development not only makes it unattractive to potential buyers and renters but also affects the quality of life for those who have already invested in the project.

Lack of Transparency: Another major issue with Nishaan Housing is the lack of transparency on the part of the developers. There is very little information available about the developers, their experience in the real estate industry, and their past projects. This lack of transparency makes it difficult for investors to assess the credibility and reliability of the developers, and also raises questions about the project’s financial viability.

Legal Issues: There have been several legal issues surrounding Nishaan Housing, which have further eroded investor confidence in the project. For instance, the project has been accused of illegally occupying land, and there have been reports of fraudulent practices by the developers.

Poor Return on Investment: Given the above issues, it is not surprising that Nishaan Housing has not been a profitable investment for those who have already invested in the project. The resale value of the properties in the project is poor, and the rental yields are also low. This is a clear indication that the project is not in high demand and is not likely to appreciate in value in the future.

In conclusion, Nishaan Housing is a bad project for investment due to its lack of development, lack of transparency, legal issues, and poor return on investment. Investors are advised to thoroughly research any real estate project before investing in it, and to avoid projects with such red flags. There are many other projects in Islamabad that offer excellent investment opportunities, and investors should explore these options instead.