Pakistan Real Estate Forecast 2020
Our yearly forecast is one of the most awaited posts every year as it helps hundreds and thousands of people to plan for there next big investment.The year 2020 is upon us and we all want to know what may be expected in the real estate sector in the coming year but before we move on to Pakistan real estate forecast 2020 let us first do a summary round up of the year 2019.
Summary round up of 2019
Year 2019 has been a good year for real estate and specially due to PKR depreciation a great opportunity lies ahead for expatriats. The major highlight of 2019 has been the budget and the real estate reforms introduced by the Government. Government polices are one of the macro factors effecting real estate and can change the entire outlook of the real estate market.
In order to move ahead we must understand the direction where the Government wants to push the real estate sector. This is not hard to understand and the policy making is being done to achieve following since 2016:
- Decrease the flow of black money into real estate sector by slowly bringing FBR rates equal to actual values of the proporty.
- Housing and construction sector to be promoted by giving levereges to help industry while discouraging investment in plots and land.
To implement these policies Government is increasing the FBR value slowly every year and it is expected to increase them further in year 2020. Further more in 2019 it increased the CGT time period to 8 years in case of plots and only 4 years in case of constructed houses or buildings.
Present market conditions
At imlaak we have been diveryfying our portfolio with construction projects specially high rise since 2017 and it has gained more momentum in 2019. Projects like Goldcrest, Indigo heights and now Downtown Mall Liberty are performing well beyond expectations as the realisation among investors continue to grow.
The present real estate market is very suitable for a diligent investor. I will therefore suggest that you utilize our consultancy services for future investments. It is a very small price to pay for decisions that will help you make millions and we will chart our plans for you in advance and help you manage your investments.
It is not all gloom and doom in the plots sector as DHA Peshawar has doubled and in some cases tripled the investment in two years and is presently at an all time high. Similarly the investments in DHA Lahore have bottomed and present a lucrative opportunity if you wish to invest in land.
Besides this DHA Multan offer a great opportunity for investments in plots, it may not be as big as DHA Peshawar but it will certainly be an area which may see a possible rise in 2020 and 2021.
2019 Pakistan real estate forecast
In 2020 we will see more stability in the real estate sector as compared to 2019 as property cycle enters its 4th year of low. Do not get me wrong I will still strongly advise you to remain in selected areas to keep your investment safe. It is very hard to predict an exact bottom as even within DHA every area may act independtly when it comes to price fluctuations.
At imlaak we only deal in select societies and bring the most safest investments with maximum growth potentials from all over Pakistan to the table. The list of societies and projects in Pakistan which are best for investment in year 2019 are as under:
Apartments and construction projects in Lahore
DHA Lahore residential plots
DHA Lahore commercial plots
Gwadar Open Land
Sangar Housing Scheme Gwadar
We have selected these societies based on merit, safety, zero risk and maximum profits.
Besides this more opportunities may arise during the year 2020 such as Downtown Mall did last year so we strongly recommend that subscribe our blog and stay in touch to remain updated.
Apartment/construction projects investment forecast
Due to Governments push towards this sector and expected policies in future to support comnstruction related activities we expect a lot of momentum in coming years in apartment/construction projects making them very suiteable for investments.
Goldcrest Mall and Residency DHA Lahore
Goldcrest Mall has delivered as promised with opening of the Alfateh Mall in Dec 2019. The prices have also strongly moved above 18000 to 20000 ft per sqft and expected to go further high in 2020 to any where between 23000 to 25000 per sqft.
The possession of apartments is expected in 2020 making it a a wise choice to invest in the project specially if safety is your number 1 concern.
Downtown Mall Liberty
We took on Downtown Mall liberty in August of 2019 and more than 70% of apartments have already been sold out. The present price is 27000 per sqft which is very lucrative considering the location and the fact that these apartments come fully furnished by wing chair.
The developer is offering a 7% rental guarnatee for the project and thus we have seen an immense interest by the people who plan to build there rental income.
Considering that indigo heights is presently been traded at 32 to 34000 per sqft which is a similiar project we expect that the price of Downtown Mall will reach 30000 per sqft in 2020 and before the end of 2021 will cross 35000 per sqft easily.
The hotel apartment project is not yet launched but we are keeping an eye on it for 2020 investments. The commercial of this project was launched as liberty forum but was delayed for a few years. However now it has been completely taken over by a new team of developers and marketers who have high hopes for the project.
In 2018 Goldcrest Mall in DHA Lahore was launched in a similar scenario and therefore the developer kept the prices very low to make it up for the delays. We expect that One Liberty team will offer some lucrative opportunities, low prices and better installment plans to build back the confidence of the market.
Springs Apartments Homes
It is a complex of apartment buildings built by orbit developers near Bahria Town Lahore . Springs apartments is the best apartment project in my opinion if you do not have the budget to go for apartments in Gulberg. I like it because it is not just a building but an entire community with a lot of amenities being offered.
Another lucrative option is there 5 years payment plan which makes it very easy for everyone to invest and pay off installments easily.
A project of imlaak constructions and developers, imlaak homes is a unique solution to invest in 5 Marla constructed houses in 9 Town DHA Lahore on 3 years installment plans. The prices of these houses match the current prices of houses available on cash price and thus offer a great opportunity to own a home in DHA Lahore even if you do not have 100% payment upfront.
The prices of houses increase by 10% at an average every year due to inflation and rise in plot prices. It is therefore a good idea to lock the price at present rates.
DHA Lahore residential plots investment forecast
When it comes to plots I see some good opportunities going in 2020 in Lahore and DHA Lahore in particular. In short term though the availability of a huge number of vacant plots will keep the prices in check in 2020. It is far better to invest in developed areas such as Phase 8 for a mid to long term investment plan as it is really hard to forecast a short term trading plan in any other area right now. However remain tuned to our imlaak and we will inform you if a short term trading opportunity arises in the residential plot sector in DHA Lahore.
DHA Lahore Phase 9 Town
A lot of houses have already been constructed and it is expected that the phase will continue to develop at a rapid pace in 2020. It is suiteable if you want to build your own house or if you are interested in safe and steady capital gains.
DHA Lahore Phase 7
Phase 7 will be stable in 2020 and best suiteable for construction of houses at a lower budget. The developed blocks such as Q,R,S,T,U,W show a promise of slight increase. The major factor here will be the PKR depreciation which has has reduced the prices of the plots in terms of dollars and we expect that property prices will slowly start recovering in 2020.
DHA Lahore Phase 6
DHA Lahore https://www.imlaak.com/dha-lahore/phase-6/Phase 6 is one of those areas which should remain in your focus in 2020 as the prices are expected to rise slowly but steadily. It is also most suiteable for living in DHA Lahore as of now and considered as the No 1 Phase for the purpose.
DHA Lahore Phase 8
DHA Lahore Phase 8 will no doubt follow the path of Phase 6 with bigger gains to come. It is expected to take over the title of best phase for making a house in DHA Lahore in a few years and thus we can expect good capital gains in years to come.
In 2020 we will see a renewed interest in Phase 8 residential plots, however 8 years CGT and higher transfer charges will keep the prices in check in the coming year to a max of 10% rise.
DHA Lahore Phase 9 Prism
Phase 9 Prism may see slight stability and an increased interest by the investors again for the same reason of PKR depreciation which makes it a great investment for your penny. Where else can you get a 1 Kanal plot in a good location in 60000 USD ?. I think mid and long term investors will start buying here for the high expected before possession.
However that will not be enough to give you any huge profits in short term but this phase can be very unpredictable due to huge investor interest so it is always a good idea to buy here when the prices are at rock bottom.
DHA Lahore Phase 10
DHA Phase 10 file may become the most sorted file among all DHA only after DHA Multan and Gujranwala balloting. The prices are down to 47 Lacs and it may be a good time to invest on dip below or near 40 lacs for a quick trade or 5 to 10 years time frame.
DHA Lahore commercial investments forecast
I believe that commercials are the best source of rental income and if you have the financial means than owning a commercial which you can rent out is by far the best choice you can make today. DHA Lahore commercial areas which you should focus in our Pakistan real estate forecast 2020 are as under:
Defence Raya Commercials
As expected the prices did not grow in 2019 and will remain so in 2020. It will still take some time before the commercial activity kicks in this area and therefore opportunity still exists for mid and long term investors to invest here to build a steady rental income.
CCA 1 & CCA 2 of Phase 8
It is better not to invest in CCA 1 and CCA 2 in 2020 only because you have a better area to look at in Phase 8.
Broadway commercial Phase 8
This is going to be the biggest commercial market of DHA Lahore in years to come so it is always wise to take advantage of lower prices and invest. It is without the doubt the best commercial investment you can make in DHA Lahore in 2020. It should see an upside of 10 to 15 Million in 2020 fingers crossed.
Park view 4 Marla files Phase 8
This is the only place which has performed against my expectations in 2019. The prices are well below 20 Million now and one mistake does not mean we have to make another by selling it. I suggest to hold on to it and invest in it, it is going to repay you in a big way in years to come.
Best place for steady rental income in DHA Lahore. I expect the prices on main MB to remain steady in general however I will be surprised if I do not see any gains on the plots of MB facing 70 feet road on the inside.
CCA 2 Phase 6
It is much better to keep your focus on MB in Phase 6 in 2020 untill Bedian road expansion project. Do i need to say more?
CCA 1,2,3,4 & 5 Phase 7
Just because you want to buy a commercial in DHA Lahore in a low price is not a good enough justification for investments here. I do not see them going upwards in 2020.
9 Town 4 Marla Plots
If you want to invest in low price commercial in DHA Lahore, this may be the best area considering its location and chances of Bedian road expansion. Although not expected to give you huge returns in 2020, it is a valid investment for mid to long term.
Zone 1 , 2 & 3 & Oval commercial Phase 9 prism
You have to be witty to take advantage of price bubbles in 9 prism. The timeline of 9 Prism commercial makes me feel very uncomfortable specially in the present market. I do not see any major increase in the price in 2020 in 9 Prism commercial.
DHA Phase 11, Phase 2 Ext Rahber commercial
Trading of files is now long gone as the balloting happened in 2019 and therefore it will remain under clouds till development and possession.
Other Cities Forecast
DHA Peshawar forecast
We have almost tripled our investment in DHA Peshawar in under 2 years. I highly recommend that if you own a plot in A, B and C blocks it is ripe time to sell in 2020 and move to other areas.
DHA Gujranwala forecast
Balloting is not expected in 2020 therefore this will be another low lay period for DHA Gujranwala with minor highs.
DHA Multan forecast
Balloting has happened in 2019 and the plot prices have not really gained so far but this might be the best area to invest in residential plots with a capital of 5 to 6 million. I am very hopeful that by the year end 2020 we will start seeing gains in the plots of DHA Multan.
Gwadar real estate forecast
Gwadar has a huge perspective in years to come and is expected to rise many times over. However it is a long term investment with a time line of 10 years atleast and you should look at it in that way as we do not see any short term trading opportunities arising in Gwadar in 2020. However Gwadar real estate is very volatile and can react to any positive news therefore you must remain tuned. Regardless of the rise or fall in future it offers valuable returns in years to come and some place where you must invest.
When it comes to Gwadar I strongly recommend that you stay away from private societies and invest only in time tested developers and GDA projects.
Sangar housing scheme
Sanghar is a GDA project and offers great opportunity for investment and number 1 on our list in 2019 real estate forecast of Pakistan.
Marine drive commercials are another area you need to look at in 2019 when considering investments in Gwadar. It is safe and a very valuable commercial investment of future.
The prices are low and investment opportunities are huge in raw land. However you need to be careful when investing as a lot of complications do exist even now.
Jinnah avenue commercials
The portion of Jinnah avenue commercial between old airport and coastal highway is lower in price and attractive for commercial investment in future.
Captain (Retd) Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
Mob : +92 333 1717170 ( Whatsapp)