Emerging real estate market in KP – Nabeel Younis

Islamabad, being the safest investment heaven for Pakistani real estate investors, has offered a diversified portfolio of housing and commercial projects from last many years. With the advent of housing societies in and around Chakri and Fateh Jhang, developers were able to drag low income class into real estate sector, bringing huge revenue to the industry. Projects with good credibility like Capital smart city and a few others offered 3 marla plot sizes to the buyers sitting on the fence.

With unstable political scenario in Pakistan, investors were forced to remain cautious in making new moves in real estate sector of Pakistan, especially in Islamabad. Recently, a sizeable investment was moved from Islamabad’s market to Peshawar by a Karachi based investor, in a hope to capture investors from Khyber Pakhtunkhwa.

The developer, however, risked a lot in doing so. This is given rise to long-awaited investment opportunities in a city other than the capital.

Yesterday, budget was announced by KP government, successfully drawing appreciation from different segments of the society. A total of Rs 1,322 billion are being announced, including allocations of Rs 1089 billion and Rs 223.1 billion for settled districts and recently merged tribal areas, respectively. Development budget is Rs 418.2 billion.

The good news for real estate market is the announcement of New Peshawar Valley City. This scheme is stretched over 186,400 kanal of land out of which 41 percent shall be developed as residential area, 28 percent as roads, 16 percent as parks and spaces, 7 percent for public sector buildings, 5 percent for commercial projects and 2 percent as graveyard for residents. Initially, more than 62000 residential plots of different sizes will be developed and offered to the market including 16,312 plots of 3 marla, 17,201 plots of 5 marla, 3402 plots of 7 marla, 9526 plots of 10 marla, 13415 plots of 1 kanal, 1494 plots of 2 kanal and 706 kanal for 4 kanal plots. The civil secretariat shall also be shifted here. The project will have all amenities including theme parks, media centre, museums, educational institiutions, health and sports facilities and forests. In short, a new city is planned with an objective of reducing the burden of population and inability to provide standard living to the existing city of Peshawar.

The new Peshawar Valley city is not only a solution to the problems faced by PDA in facilitating citizens living within the old infrastructure of Peshawar, but will also bring massive revenue from within the country and abroad to the district and the province. It has the tendency to revolutionize the real estate sector of KP, provided PDA fulfills its commitments. The overall situation looks promising for investors and dwellers alike and will create a positive aura of investment for Pakistan’s real estate market.

About the author: Nabeel Younis is a business management consultant and is passionate about transformation of real estate management services in Pakistan. He also provides analysis and expert opinion on real estate market.

(The author Nabeel Younis is a business management consultant and is passionate about transformation of real estate management services in Pakistan. He also provides analysis and expert opinion on real estate market.)