Pakistan’s Real Estate Market Trends in 2018

The year 2018 was not an especially lucrative one for the real estate sector, primarily due to the economic downturn, as a result of which Pakistan real estate market transaction decreased significantly.

Here are a few trends that emerged in 2018:

Residential Real Estate Investment Trends

• The prices of houses increased by up to 10%; rentals remained the same when compared to 2017.
• The prices of, and demand for, plots increased by 5 to 15%, particularly in Punjab real estate, where the sales of one-acre plots increased by 8-10%.
• Apartment related real estate market decreased by 10 to 15%; their prices decreased by 12 to 18%.
• The demand for affordable property within gated communities increased by up to 20% and their availability went up by 10%.
• Investments in plots and house on the outskirts of metropolitan cities within gated communities increased by 15 to 20%.
• Foreign real estate investments made by overseas Pakistanis decreased by 10 to 12%.
• Areas that attracted most investment include DHA (Bahawalpur), DHA (Islamabad), Bahria Town (Karachi) and Phases VI and IX, DHA (Lahore).

Residential Real Estate Investment Trends

• Property prices increased by up to 10%; rentals remained the same.
• Foreign real estate investment in Pakistan market increased by 20%
• The demand for multi-purpose commercial buildings (which consist of retail and office space) increased by 10 to 15%.
• Investment in property along the China Pakistan Economic Corridor (CPEC) increased by 5 to 10%.
• Popular real estate investment destinations included areas on the outskirts of cities such as Gwadar, Islamabad, Karachi, and Lahore. Key commercial areas that attracted investment included Jinnah Supper (Islamabad), Clifton and Shahrah-e-Faisal (Karachi) and Gulberg (Lahore).

Other Real Estate Investment Trends Include:

• The demand for, and value of, agricultural land increased by 10 to 15%
• Construction costs increased by 15 to 18%.

Low Cost House Plans with Estimate in Hilly Areas

The trend of establishing low-cost house designs and floor plans within hilly terrains is gaining traction, where property prices are increasing, and a significant proportion of the population is unable to afford housing. These houses, which resemble caves, are considered to be earthquake proof and are not affected by landslides. According to a report by (General Growth Properties, 2018) the demand for, and value of, these houses are increasing by 15 to 30% every year, and they are also used as storage space as well.

Here is an in-depth look for cheap house building ideas:

• ·        To construct a ‘cave home’, space within a hillside must be purchased; its price is 25 to 40% lower compared to the cost of regular plots.
• ·        These houses are spread over at least 400 square feet and usually consist of two large rooms; kitchens, restrooms and living areas (usual verandahs) are located outside.
• ·        Another low-cost house construction technique is to build plastered walls with clay instead of regular paint, and floors are paved with concrete. These are easy to maintain and relatively inexpensive.
• ·        These houses usually do not have windows; however, entrances are at least seven to eight feet high in order to allow a substantial amount of sunlight to enter.
• ·        Due to their location, these houses stay cool in the summer and warm in the winter, which makes them eco-friendly.
• ·        Indoor plumbing is usually not available; however, electricity is.
• ·        The estimate of the low-cost house plan is in between $ 35,000 and $ 40,000, and this makes these houses affordable for a significant number of people in hilly areas. An increasing number of people are purchasing them and placing them on rent; monthly rentals range between $ 1,350 and $ 1,800.

How to increase home value for appraisal by using four building material

Over the last five to ten years, an increasing number of houses are being constructed with eco-friendly blocks instead of those made with regular concrete. Not only are they durable, but they can also withstand the impact of climate change. Furthermore, their presence can increase home value for appraisal significantly.

What makes property value increase:

Here are four building materials to consider when constructing a house:

1. Insulated concrete blocks are made from polystyrene or polyurethane foam and then filled with concrete. Introduced in Europe in the 1960s, these blocks are easy to stack, lightweight (they weigh 40% less than regular concrete blocks) and provide thermal protection. Houses in which these blocks are used are 15 to 25% cooler during the summer and warmer during winters. Their presence can be the best home improvements to increase value by 10 to 15%.

2. Autoclaved aerated concrete (AAC) is a building material that contains air pockets within the concrete and this makes it 30 to 40% lighter than regular concrete. Available in the form of blocks and slabs, it provides thermal and sound insulation and is fire-resistance. Its presence can increase a home value for appraisal by 25 to 30%.

3. Straw bales have been sued for centuries to thatch roofs and building walls. This renewable material is usually covered with cement to make sturdy building blocks that are resistant to fire and decay. Straw bale walls can also be used in houses to create positions. Their presence is what home improvements add the most value by 10 to 12%.

4. Green blocks are made of concrete and covered with a plant-based slide. Mostly used on the facades of houses; they are durable, eco-friendly and low maintenance in terms of their cost. They are also effective insulators and keep homes cool during summer and warm during winter. These are what makes property value increase by 8 to 10%.