Real Estate Market in Islamabad and Lahore Faces Downturn
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Loading... - Kaur Edwin
- 30 Sep 2024
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The real estate markets in Islamabad and Lahore are experiencing a downturn, primarily driven by economic slowdowns and new taxes imposed on properties. According to a report by the House Building Finance Corporation (HBFC), while some regions like Karachi have seen moderate growth, key cities such as Islamabad, Rawalpindi, and Lahore have witnessed a decline in property values.
The report highlights fluctuations in property prices across three categories: Small Properties (3-7 Marla), Medium Properties (10-15 Marla), and Large Properties (1-2 Kanal). The trends from 2012 to 2023 reveal varying growth patterns based on location and property size.
In Lahore, small properties remained volatile, peaking at 81% growth in 2014 but settling at 12% in 2024. Medium properties showed more stable growth, with notable peaks in 2012 and 2016 but slowed to 13% in 2024. Large properties saw sharp declines, dropping by 7% in 2024, marking a shift in investor focus and economic factors impacting the luxury market.
Islamabad experienced fluctuating trends, with small properties reaching 28% growth in 2023 but moderating to 8% in 2024. Medium properties also faced ups and downs, while large properties saw negative growth of 23% in 2024, indicating market challenges.
In Rawalpindi, small properties saw substantial early growth, especially in 2012 with a 207% surge, but 2024 showed stable demand with 5% growth. Medium properties experienced steady demand, with 11% growth in 2024. Large properties, however, faced extreme volatility, with a 16% decline in 2024 following years of growth.
Overall, the report indicates that Pakistan's real estate market is struggling due to economic difficulties, though certain segments and regions have fared better than others.
