Islamabad Real Estate Market trends & Analysis
Real estate offers both more prominent and less steady profits than other assets. Property is developed because a group of individuals sees a large enough population justify it. A booming real estate market is shown by the complete series of innovative properties added each year. Demand drives sales, and demand continues to climb. Residents have almost certainly never decreased, which explains why housing demand continues to rise year after year. Aside from the bleak and tragic view of recent years, there is reason to believe that the real estate market in Islamabad will have a lot to look forward to in 2021.
This lovely and rich city is known for its pleasant weather. This is a landscape of possibility, reliability, and accessibility. In a time when the city’s population has exploded, the town presents fantastic investment opportunities. It’s one of the top places to invest in the following years. We can use the elements discussed in this article to assess Islamabad real estate market trends and analysis 2021.
Before we get into the current year’s market trends, let’s take a look back at the previous year’s:
Islamabad Real Estate Market in 2020
The Islamabad property displayed significant differences in property purchase trends in 2019-20. Here, investment activity remained concentrated in a few housing societies and areas of the city where rates could rise further due to continuous development work. This behavior was especially noticeable in projects with smaller property units with Federal Board of Revenue (FBR) assessment rates (notified for tax collection purposes) less than PKR 5 million. Developed civilizations, on the other hand, were reasonably stable due to genuine customer demand.
Furthermore, civic officials in Islamabad and Rawalpindi appeared keener to enforce building regulations, apparent infringements, update the master plans for both cities and keep the cities cleaner, greener, and more organized in accordance with Supreme Court of Pakistan directions. At the same time, announcements that they will build various new infrastructure projects shortly and the resumption of work on existing initiatives have presented investors with some compelling reasons to back specific projects and places in the city. Based on how developers, property dealers, and investors reacted to changing market conditions in 2020, it’s clear that Islamabad real estate market investors were not willing to give up.
Islamabad Real Estate Market in 2021
The real estate market in Islamabad is thriving, and real estate investment will almost certainly yield a strong return on investment (ROI) this year. It is critical to recognize that a variety of factors determines profit. Before completing an investment in Islamabad real estate market, you should constantly examine those elements. These considerations include the property’s location, condition, and price, among others.
The China-Pakistan Economic Corridor (CPEC) is a collaborative economic initiative between China & Pakistan. As a result, it will eventually result in an influx of both Chinese immigrants and visitors. The greater the number of persons, the more lodging will be required. As from the standpoint of real estate, Islamabad real estate struck gold. Some housing developments have planned ahead to handle the influx of tourists, such as Blue World City, which is building landmarks that will also serve as tourist attractions. Construction of a replica of the Blue Mosque and a replica of the Burj Al Arab are two examples of this. In addition, the estate project plans to build the world’s most prominent horse mascot, which is guaranteed to become a famous tourist attraction. As a result, these two CPEC variables will have a significant impact on the expansion Islamabad real estate market.
- Property Tax Reduction in 2021
To reduce the economic wreck of the pandemic, Pakistan’s government has lowered interest rates and introduced incentives for investors and businesspeople. It’s an encouragement plan for the construction industry, with the double goals of producing jobs for low-wage workers and expanding economic growth. Underneath the Naya Pakistan Housing Program, the package also contains additional subsidies for builders & developers to provide low-cost housing for the needy. The NPHP will have a significant positive impact on the Islamabad real estate market. The construction tax rate would be set, and they will eliminate the tax liability.
Challenges for the Real Estate Market in Islamabad
While the twin cities’ infrastructure continues to develop, there is an increasing need to address challenges such as water shortages. In this regard, the authorities in charge have already started building many micro dams and have begun the work necessary to lay new water mains to meet the city’s water demands. They’ve also created a campaign to prevent water theft. We expect that the revised master plans for Rawalpindi and Islamabad will include:
- Recycling water.
- Using renewable sources of energy.
- Being more efficient in satisfying the housing demand necessary for housing projects and Islamabad real estate market.
Vertical expansion is the best method for Islamabad to expand, as savvy investors & developers already understand. Nevertheless, before that happens, people should invest in undervalued ventures, as they did in 2019. In reality, investors in Islamabad were able to make significant short-term gains throughout the year as a result of comprehensive market analysis and thorough assessment of risk & reward considerations of the Islamabad real estate market. This quality was lacking in the real estate markets of other places in Pakistan.
We at Estateland Marketing have heaps of related blogs on market trends of Pakistan and other major cities, don’t forget to check our blogs section. To read more about Naya Pakistan Housing Project please visit our website.