Housing market in Rawalpindi-Islamabad to crash after 2007
'Pakistan Times' National News Desk

ISLAMABAD: Owing to the persistent housing crisis in the twin cities of Rawalpindi and Islamabad, housing prices during the year 2007 are expected to rise up to 15-20 percent, what the real estate experts say will not last long and will move towards crash.

Sources in Capital Development Authority [CDA] say that the development work is in full swing in sectors I-14, 15, 16, D-12, G-13 and some parts of G-14, which will be completed during the next two years.

Authority is also engaged in the land acquisition process is in progress sectors G-12. F-12, D-13, and E-13 besides 10 new sectors recently announced by the interior ministry.

CDA and Housing Ministry have also planned to construct residences of condominium style in sectors E-11 and G-11 respectively.

According to an estimate, after execution of all these projects, about 60,000 residential plots will be available in Federal Capital Islamabad against the dearth of about 40,000 units.

The completion of the ongoing development work in the said residential sectors is not expected during this year, so housing sector will experience a past-like increase in the prices of residential units.

This rise will be particularly witnessed in the would-be regularised rural areas including Zone-III, IV and V having more than 200,000 houses against 70,000 in the sectoral areas.

Housing consultants say, the major reason for continued house price growth remains, and is likely to remain for about two more years, and the reason is that demand continues to outstrip supply.

Government figures show that within next four years, the twin cities will relieve from the housing crisis after the new sectors will provide more or less 60,000 dwellings.

While the housing market will remain strong into the year of 2007, many predict that the market could face a wobbly ahead of that when there will then be less properties coming fresh onto the market.

“Dealing in files, blank cheques, money mortgages to people and loans on high interest rates will have to face an imminent crash. Home builders may face bitter experiences.

Housing sector will see a dramatic price drop it would have never seen in the past,” cautioned a real estate consultant in sector F-6 here.●