Infrastructure developments across the globe dictate real estate buying trends. The practice to benefit from such developments is particularly common among veteran real estate investors. In this regard, access to correct information and the status of on-ground development work is crucial. This is often why only a select few people end up benefiting from these projects.
The Infrastructural Transformation Promised for Pakistan
The situation is no different in Pakistan. Despite being a country that familiarises itself with mega development projects launched under the China-Pakistan Economic Corridor (CPEC), real estate investors are already queued in to get their share from the expected growth in the real estate value.
The sentiments are justified as the CPEC-related developments are planned all over the country. In fact, according to a report shared by The Diplomat, the economic corridor is all set to help Pakistan become the next Asian Tiger.
At the same time, the infrastructure projects planned in the backdrop of CPEC to assist the original projects or to help the city blend with these developments are also leaving their mark. This is particularly true for the capital city where rapid change in the real estate buying trends has been witnessed over the past few years. The launch of new infrastructural development projects catalyses this shift.
Real Estate Buying Trends in Islamabad
Real estate buyers from Pakistan and overseas find certain areas more attractive for investment than others depending on the active infrastructural development projects. The decision is based on various other factors as well. These include real estate market price, development status of a project or housing scheme and how soon can it serve the end users. Nonetheless, the shift in focus for infrastructural developments tops these reasons.
Being a much younger city in comparison with other metropolises of the country, Islamabad is still expanding. While this offers long-term real estate potential in some areas, many have successfully managed to score handsome short-term gains.
Assessing at the investment shift seen in the recent past, buying trends observed right now and the neighbourhoods that could emerge as the new playfield in the future should help you see how infrastructural developments dictate real estate trends in Islamabad.
High real estate demand was recorded in projects surrounding the Islamabad International Airport. Please note that despite being located on the city’s western edge in Zone II, this mega development triggered investment activity during the mid-2010s. Quite interestingly, developers of many real estate projects here didn’t really need to spend a fortune on marketing campaigns to attract investment. Most of these projects benefited from the advertisements done by a few developers.
Investment activity in Zone II last for a three years before the situation become less favourable post the introduction of new taxation system in July 2016. In the meanwhile, construction work at the airport also completed. This marked the time for investors to make an exit. But where would they head next? To an area where rates were comparatively low and the planned infrastructural development promised real estate in the future.
Neighbourhood of the planned signal-free Islamabad Expressway was always a huge attraction for real estate investors. When compared with housing projects surrounding Islamabad International Airport in Zone II, societies located on Islamabad Expressway are closer to the central parts of the city. In addition, the expressway is also home to many reliable and popular housing projects. All of this was bound to draw investors’ attention.
Islamabad Expressway and its vicinity is currently the most active part of Islamabad in terms of real estate investment. Fortunately, property rates in many of these societies is undervalued due to lack of investment activity and the consequent slow development work.
Furthermore, many of these societies are also popular among the end users looking to buy houses in Islamabad. To buy houses in Islamabad, users are visiting prop.pk. This is also a prominent reasons why investors find these societies safe for investment under circumstances when many are laying low while the Government of Pakistan tries to track and document the black money.
The investors next stop could be area marked for the construction of Rawalpindi Ring Road, which is a major road project planned for Islamabad’s twin city of Rawalpindi.
The 55-kilometere long and several-lane wide road starts near Rawat on Main GT Road and ends at Islamabad Thalian Interchange on Lahore-Islamabad Motorway M-2. This project was conceived years ago and reportedly, many real estate developers have their projects planned, which will be announced when the time appears ripe to gain maximum gains.
The planned route for this ring road is also home to prominent housing schemes. This is in addition to the mega projects the government has planned to set up around this road avenue. Before construction work on this infrastructural development formally kicks off, the neighbourhood will remain dormant in terms of investment activity. At the same time, veteran investors continue with purchasing land in this area.
We might be able to see a huge number of investors with smaller budget get active as soon as the government announces to start development work. In the meanwhile, prices will continue to inch up. Those willing to increase their investment duration a bit for scoring much more impressive returns on investment should get active now.
The real estate buying trends in the next 10 or more years will be dominated by the projects initiated under the CPEC. In the meanwhile, the new master plan 2040, which is currently in the making, might confine the city from seeing further expansion. This could also limit opportunities for investors who by then might be more interested in high-rise developments, mega commercial projects and industrial land. Who knows!