It has always been an inexpensive aspect for homeowners to buy an already-built home than to build one themselves. But that is not one of the best solutions for the past few years. The Pakistan real estate market has always flourished, but houses aren’t getting cheaper in any sense. Economic forecasts and prevailing issues cause concern for investors. Normally some people might point you to a common problem, but several factors are the main issue that has always led readers to ask the title question. This article purely focuses on what factors are the cause and effect when purchasing a house in Islamabad.
Area and Location
To completely understand why this has been happening. You need to understand that location matters when it comes to purchasing a home. Houses located near a metropolitan area tend to be more expensive because you have all your needs at arm’s length whereas real estate that is far from known metropolitan areas is said to be less costly. But that only depends on if you are going to bear the logistic cost.
For example, purchasing a house near Bahria Town Phase 4 will be expensive. However, if you purchase a property in Bahria Town Phase 7 it might be less than what you might be getting but not cheaper. Rawalpindi and Islamabad are hotbeds for prime properties. But you must spend a lot of money to get a good real estate property.
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The Falling Rupee
The other factor is the economy of Pakistan. The devaluing of the Pakistan Rupee is one of the key reasons why purchasing real estate in Islamabad has become expensive. More than a decade ago owning a plot or even real estate was far cheaper than you imagine. That is because the rupee was much more robust. That is not the case since there has been an economic downturn and the pandemic did a huge pounding on our ever-developing economy. Also, political instability led to this downfall. We owe more to the lender than we return. This has caused the rupee to fluctuate to a point where inflation has risen more than 150%. To elaborate simply, our buying power has decreased more than our spending power.
Why does Bahria Town Succeed where others fail?
Of all the localities and the housing society in Islamabad, Bahria town is successful because it offers more facilities and privacy than anyone else. That privacy comes at a price, and it is only rising and people aren’t happy with the current situation in Pakistan. The people of Pakistan gave two simple options: either buy the real estate with the over-achieving price tag or move to a different city. Rising prices are also due to the various monopolies that are in play for some time. Property Dealers buy real estate in bulk and try to sell them for far more expensive rates.
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Evaluation Rates
You might think there is a check and balance by the authorities, but that is never the case as the Legal system of Pakistan is as miserable as the people who are buying real estate properties. That is one of the key reasons that buying a house in Islamabad is expensive. To make matters bleaker, the people who are selling these properties might seem desperate but if you are even in the market you need to visit the property. Including the DC and FC rates has put countless real estate properties into a mix.
Cantonments properties are mostly on DC rate for evaluation whereas privately owned housing societies use Mother Nature to decide. No regulation and control can stop the ever-rise in housing prices. Just like the cost of living is increasing, so is the cost of surviving.
Current Affair is a factor
The other key factor why real estate prices are reaching the roof is the current situation in Pakistan. More and more people are selling their homes, so they can move to a country that provides better facilities. It is simple economics. Supply has gone off the roof for the real estate market whereas demand has gone down as people are trying to save money. They would rather buy a small house in a poor locality than purchase a hospitable house in a balanced locality. But this situation will get worse and the housing market will reach breaking point unless either the economy or the political climate takes a stand.
Electricity, Water, Gas, Taxes, Safety, Security, and Privacy are other factors that play a role. There are several reasons why countless real estate properties in Islamabad are expensive. That is due to the part that these properties provide all these amenities in excess. The only thing you must manage is the cost of living.
