Monday, October 3, 2016

Gated Communities For Upwardly Mobile Pakistan

Real estate developers have so far built over 250 gated communities across Pakistan in response to rising demand from upwardly mobile Pakistanis.

Eden Housing Gated Community in Lahore, Pakistan


These communities cater to insatiable demand for world-class and well-appointed housing with modern infrastructure including well-built wide roads and reliable supply of water and electricity. Additionally, they offer various state-of-the-art amenities such as schools, hospitals, mosques, restaurants, theaters, shopping malls and parks located within secure communities, according to a report by Adrian Bishop, editor of Opp.Today.

Gated communities are being offered at multiple price points and payment plans that suit not just the rich but the middle class buyers as well. They offer condos (flats), townhouses and single-family homes on lot sizes ranging from 125 square yards to  2000 square yards. These communities are fueling a construction boom in Pakistan.

Defense Housing Authority (DHA), Bahria Town (Malik Riaz), Eden Housing (Aleem Khan), Emaar Properties (of UAE) and Ghurair-Giga (of UAE) are among the biggest developers of gated communities in Pakistan.

Bahria Town Islamabad


In addition to major Pakistani cities of Karachi, Lahore and Islamabad, new gated communities are being developed in second and third tier cities as well. Recently, Bahria Town announced its newest development of a gated community in Nawabshah, a city of just over a million residents in southern Sindh province.

Here's an excerpt of a 2013 AFP report on Bahria Town gated community in Islamabad:

Cars glide softly over the smooth tarmac carpeting the gentle hills of Pakistan’s largest gated community, past immaculate green verges dotted with statues of cattle — which, unlike their real counterparts elsewhere in the country, pose no threat to traffic. 

There’s a horse riding centre, a golf course, a posh cinema, an immaculately air-conditioned café and a mini zoo with “the only black panther in Pakistan”, whose growling excites young couples taking a walk. 

Elsewhere 20 metre models of the Eiffel Tower and Nelson’s Column — complete with lions — watch over this vision of suburbia which seems a world away from the rest of Pakistan’s seething, traffic-choked and crumbling cities.

https://youtu.be/ZvKOCZuZAiM





Related Links:

Haq's Musings

ADB Raises Pakistan's GDP Growth Forecast

Pakistan's Rising Middle Class

Upwardly Mobile Pakistan

 DHA Karachi Green City

Emaar Crescent Bay Karachi

Pakistani Construction Boom

20 comments:

Anonymous said...

30% of world's poor children live in India.
http://indianexpress.com/article/india/india-news-india/over-30-per-cent-of-extremely-poor-children-live-in-india-world-bank-unicef-report-3065451/

Where is your blog article?

Majumdar said...

.......a mini zoo with “the only black panther in Pakistan”....

Only one black banther in the whole of Bakkkiland. That's a disgrace,sir. As a kid, I must have seen a black banther in every circus. I am of course assuming they were not painted black to fool us.

Regards

Riaz Haq said...

#Chinese investor eyeing stake in #Pakistan's Dewan Cement Amid Record Growth of Cement Demand. #CPEC

http://tribune.com.pk/story/1187284/potential-new-player-chinese-investor-eyeing-stake-dewan-cement/

In a development that may raise eyebrows in a highly competitive cement industry, a Chinese investor has expressed interest in due diligence of Dewan Cement Limited in order to acquire a stake in the company.

“We have received a request through email from a potential Chinese strategic investor seeking permission for due diligence of Dewan Cement, which may eventually lead to acquisition of shares in our company,” said a company notice sent to the Pakistan Stock Exchange on Friday.

“We intend to permit due diligence; if any material development takes place, we will communicate the same to the (stock) exchange and the Securities and Exchange Commission of Pakistan.”

The development is expected to create an interesting situation in the cement sector where a number of companies are already vying to increase their market share.

“If this due diligence results in some deal, the new investor will most likely install a new plant which may take up to three years to start operations. So this is not an immediate threat to the cement cartel,” Sherman Securities analyst Sadiq Samin told The Express Tribune.

“The due diligence process will itself take two to three months and then we will have to look how it affects the market.”

This would not cause any jitters because cement demand was growing continuously, he said when asked whether the entry of a foreign player would spark fears.

Dewan Cement has a production capacity of around 2.88 million tons per annum, constituting 6.1% of the total installed capacity of 45.6 million tons of the cement industry. It has two manufacturing units including Pakland Cement and Saadi Cement.

Analysts suggest that the situation would have been different if the company had installed a new plant and the Chinese player could immediately start manufacturing cement after taking it over.

Pakland Cement was established in 1981 at Deh Dhando in Malir district, Karachi. The plant was fully operational by 1985 and producing Ordinary Portland Cement.

Anticipating a further growth in demand, cement companies are aggressively engaged in expansion of their plants.

Cherat Cement, Attock Cement, DG Khan Cement and Lucky Cement have already announced expansion plans and these plants will come online over the next three years. The combined investment by these players is expected to be in the range of $700 million to $1 billion.

The construction sector, a major consumer of cement, posted an excellent 13% growth in fiscal year 2015-16 compared to average growth of 4% in the past four years due to economic recovery and the booming real estate sector, according to the Pakistan Economic Survey 2016.

The government expects construction-related activities to pick up further momentum on the back of increasing public sector development spending coupled with massive infrastructure and power projects under the China-Pakistan Economic Corridor (CPEC).

Riaz Haq said...

How #Chinese money will transform #Pakistan | The Third Pole. #China #CPEC

https://www.thethirdpole.net/2016/10/06/how-chinese-money-will-transform-pakistan/


The development of the China-Pakistan Economic Corridor (CPEC) has spurred debate in all quarters. Some perceive it as a form of neo-colonialism criticising Pakistan’s government for promoting unethical business practices at the cost of ordinary citizens’ livelihoods. Others see the CPEC as an unprecedented opportunity for economic revival with potential for a number of positive spillover effects including stronger local institutions.

See: Interactive map: China Pakistan Economic Corridor

CPEC is a package of infrastructure projects worth USD 46 billion. About two thirds of this funding, USD 33 billion, is committed towards establishing energy and power projects in Pakistan. Ahmed Zulfiqar Siddiqui, a senior executive at China Power, says these projects will help alleviate the country’s chronic energy crisis which cost the nation 7% of its annual GDP last year. “The Chinese have invested in power generation from coal and LNG as well as hydel, wind and solar power. A new transmission line funded by them will carry electricity from new power generation units in Sindh to load centres in Punjab. Shanghai Electric, a sister company of China Power, has also expressed interest in acquiring a major stake in K-Electric, which is the main provider of electric power to over 20 million people in Karachi. The Chinese are therefore covering the entire power sector value chain – from fuel extraction (mining) to end-user distribution.”

If everything goes according to plan

Improved energy supply could enable Pakistan to boost its flagging indigenous industries such as textiles, agriculture and manufacturing, increase exports and ultimately lead to sustained economic growth in the long term.

See: China’s new silk road: What’s in it for Pakistan?

A Deloitte study predicts that if everything goes according to the plan, the combined value of CPEC’s infrastructure projects would be equivalent to 17% of Pakistan’s GDP in 2015. Moreover, the project is expected to create at least 700,000 direct jobs and serve as a springboard for the development of industries such as retail, tourism, hospitality, health and education. The expansion of these industries could potentially lead to synergies among various downstream sectors with benefits accruing to the larger population. But Siddiqui stresses the need for policies to ensure involvement of local unskilled labour and small contractors since the mega-construction projects will predominantly be executed by Chinese labour. He also highlights the need to protect established local industries against price competition from China since local firms may not be able to compete with cheaper Chinese industries.

The CPEC project may also benefit the real-estate industry along the trade route. In Gawadar, property prices have more than doubled in recent months due to demand for housing. Atif Alam, owner of RB Associates, a real estate agency which deals in property across the country, believes that demand for quality housing and recreation facilities will sky-rocket as more Chinese expats move to Pakistan and infrastructure development enables access to previously isolated areas of natural beauty or historic significance.

See: The China-Pakistan Economic Corridor winds through Gilgit-Baltistan

Riaz Haq said...

Excerpts of Deloitte & Touche report on CPEC:

It is estimated that if all the planned projects are implemented, the value of those projects would exceed all
foreign direct investment in Pakistan since 1970 and would be equivalent to 17% of Pakistan's 2015 gross
domestic product. It is further estimated the CPEC project will create some 700,000 direct jobs during the
period 2015–2030 and add up to 2.5 percentage points to the country's growth rate.

The CPEC will open doors to immense economic opportunities not only to Pakistan but will physically connect
China to its markets in Asia, Europe and beyond. Almost 80% of the China’s oil is currently transported from
Strait of Malacca to Shanghai, (distance is almost 16,000 km and takes 2-3 months), with Gwadar becoming
operational, the distance would reduce to less than 5,000 km. If all goes well and on schedule, of the 21
agreements on energy– including gas, coal and solar energy– 14 will be able to provide up to 10,400
megawatts (MW) of energy by March 2018. According to China Daily, these projects would provide up to
16,400 MW of energy altogether.
As part of infrastructure projects worth approximately $11 billion, and 1,100 kilometer long motorway will be
constructed between the cities of Karachi and Lahore,2 while the Karakoram Highway between Rawalpindi and
the Chinese border will be completely reconstructed and overhauled. The Karachi–Peshawar main railway
line will also be upgraded to allow for train travel at up to 160 kilometers per hour by December 2019.3
Pakistan's railway network will also be extended to eventually connect to China's Southern Xinjiang
Railway in Kashgar.4 A network of pipelines to transport liquefied natural gas and oil will also be laid as part of
the project, including a $2.5 billion pipeline between Gwadar and Nawabshah to transport gas from Iran.5
Oil from the Middle East could be offloaded at Gwadar and transported to China through the corridor, cutting
the current 12,000 km journey to 2,395 km. It will act as a bridge for the new Maritime Silk Route that
envisages linking 3 billion people in Asia, Africa and Europe, part of a trans-Eurasian project. When fully
operational, Gwadar will promote the economic development of Pakistan and become a gateway for Central
Asian countries, including Afghanistan, Uzbekistan, linking Sri Lanka, Iran and Xinjiang to undertake marine
transport.6
Over $33 billion worth of energy infrastructure will be constructed by private consortia to help alleviate
Pakistan's chronic energy shortages,7 which regularly amount to over 4,500MW,8 and have shed an estimated
2-2.5% off Pakistan's annual GDP.9With approximately $33 billion expected to be invested in energy sector
projects, power generation assumes an important role in the CPEC project. Over 10,400MW of energy
generating capacity is to be developed between 2018 and 2020 as part of the corridor's fast-tracked "Early
Harvest" projects.10

https://www2.deloitte.com/content/dam/Deloitte/pk/Documents/risk/pak-china-eco-corridor-deloittepk-noexp.pdf

Riaz Haq said...

Royal Orchard Multan – A project of Royal Developers & Builders (Pvt) Ltd

http://www.zameen.com/blog/royal-orchard-multan-a-project-of-royal-developers-builders-pvt-ltd.html

Apart from the provincial capitals, major cities across Pakistan have become the landing station for noted real estate developers who find the primary markets of the country less fertile for gaining momentum and generating sizable interest among investors and buyers. Lately, we have seen cities like Faisalabad, Sheikhupura, Sialkot and Gujranwala welcome new residential projects by famous real estate developers.

Multan, being the central and major metropolis of South Punjab, is experiencing an enhanced real estate activity at the moment and additions of posh housing projects are adding value to the property market of the city further. Considering time right for the launch of a luxurious housing project in the city, Royal Developers & Builder (Pvt), a subsidiary of Habib Rafiq Pvt Ltd Group, brings its 60 years of experience to the City of Saints in the guise of Royal Orchard Multan.

Royal Orchard is located on Main Multan Public School Road near Northern Bypass and Mittital Road, Shakh-e-Madina Road and Women University, with the Multan International Airport only a 9-minute drive from the project site. It is one of the largest residential schemes in the city and offers the people of Multan a secured and amenities-laden lifestyle backed by Habib Rafiq (Pvt) LTD’s signature construction standards.

The projects is unique in various ways as it will have the biggest Jamia Mosque of Multan built on an area of 25 kanals. Royal Orchard will also have the biggest roundabout of the city as well as the biggest Commercial Broadway of Multan which would be 590 feet wide. The developer is offering a lifetime of maintenance services to the residents of Royal Orchard. Other attractions of the project include:

• Underground electrification

• Community Transport services

• Telephone exchange and DSL

• Water filtration plants

• Post office

• International standard mini golf club

• A community club

• Parks, play grounds and jogging tracks

• Banks and shopping plazas

• School, colleges and a university

• A Cineplex

• Food courts, restaurants and hotels

• Gated community, walled premises

• Four manned entrances from three sides of the city

• Carpeted roads

• Security check posts, physical surveillance, CCTV

You can choose to buy residential plots in Royal Orchard in various sizes to suit your budget. Payments can be made through a convenient 3-year plan. For more details, I recommend you visit Zameen.com’s New Projects Section for Royal Orchard Multan.

Riaz Haq said...

Samhan Group of Companies launches independent real estate brand

http://tribune.com.pk/story/1251425/samhan-group-companies-launches-independent-real-estate-brand/


After tremendous success of Gujranwala and Sargodha projects, Samhan Group of Companies has formally launched its independent real estate brand by the name of Samhan Housing. The launch event was organized at Royal Palm Lahore and was attended by real estate magnates from across Pakistan as well as members of the Samhan Group.

The Group entered the real estate realm in 2014 with its first project being at Gujranwala, followed by Sargodha in 2015. The Group also has a low-budget housing project ‘Samhan Homes’ within the said schemes to its credit, and has put the best of its efforts into speedy development of all real estate projects while ensuring on-time possession for every home owner. Now, with two immensely successful residential projects in its portfolio, Samhan Group has formally launched its independent real estate brand ‘Samhan Housing’ and has expressed intent to launch residential projects in Attock, Islamabad and Lahore in the near future.

“It’s a momentous occasion for Samhan Group as we materialize our vision of diversity in business with the launch of our independent real estate brand Samhan Housing,” said Saleem Hanif, Chairman Samhan Group, while sharing his thoughts on the occasion. “After executing two hugely successful residential projects, we decided to introduce our independent brand into the real estate sector. In our upcoming residential projects, we will try to tap into all budget segments of the population, providing them with the high-quality residential solutions that they can afford,” he added.

“We are proud to have added Samhan Housing to our portfolio of companies. Pursuing excellence in all our business endeavors, we have already proved our mettle in the vastly competitive real estate sector and with our upcoming projects, we are geared to expand our outreach and earn the same level of public trust that we did in our previous property ventures,” said Mr. Sheraz Khan, Head of Sales & Marketing, Samhan Housing. “We hope to give Pakistan some of the most amazing residential projects in the near future and make our mark as Pakistan’s premium and most trusted real state player,” he added.

Established since 2009, Samhan Group of companies has ventures in defence logistics, real estate, fashion, IT, advertising/ media production and telecom sectors. With the launch of Samhan Housing as its real estate brand, the group aims to emerge as a market leader with projects that cater to all segments of the society.

Riaz Haq said...

#China building boom to churn out #Pakistan's largest steel IPO with #steel output growing 23% in 2016. https://www.bloomberg.com/news/articles/2017-05-15/china-building-boom-to-churn-out-pakistan-s-largest-steel-ipo … via @markets

Agha Steel Industries Ltd. is planning Pakistan’s biggest-ever private sector initial share sale this year to help boost output as China funds more than $55 billion in infrastructure projects across the nation and a buoyant stock market spurs investor demand.

The Karachi-based company plans to raise as much as 10 billion rupees ($95 million) selling a 25 percent stake, Executive Director Hussain Agha said in an interview. The sale will be the largest since the 12-billion rupees government stake sale of Habib Bank Ltd. in 2007, the country’s largest IPO yet.

Steel and cement makers in Pakistan are expanding to meet demand as the “One Belt, One Road” trade route financed by China spurs construction. The nation’s economy has grown at about 5 percent annually since 2013, encouraging Agha’s peers including International Steels Ltd. and Aisha Steel Mills Ltd. to lift production.

“You need roads, sky rises and housing,” said Agha. “Pakistan’s steel industry is in an infancy stage and growing at a massive pace -- the whole environment will change.”

Read more: Chinese Largesse Lures Countries to Its Belt and Road Initiative

The company will use the funds for $50 million expansion that will triple output to 500,000 metric tons within two years. Production will then double to a million tons by 2023, he said. Habib Bank has been appointed financial adviser while Arif Habib Ltd. and BMA Capital Ltd. were picked as book runners for transaction.

Pakistan’s steel output grew 23 percent to 3.6 million tons in 2016, the biggest gain among 40 nations, according to the World Steel Association. Agha Steel expects construction-grade steel, such as rebars and wire rods, to grow as much as 12 percent annually for the next three years.

The construction sector expanded 13 percent in year ended June 2016, more than twice the pace in the previous 12 months, according to State Bank of Pakistan’s annual report. Rapid urbanization and rising income levels has left the nation with an annual shortfall of 500,000 homes, according to real-estate developer Arif Habib.

“Real-estate is the main engine for this growth, it has really picked up,” said Ayub Khuhro, chief investment officer of Karachi-based Faysal Asset Management Ltd., which has about 8 billion rupees in stocks and bonds. “The government is also willing to protect companies with anti-dumping measures.”

Riaz Haq said...

THE EXPRESS TRIBUNE > BUSINESS
Following chaos, real estate markets largely stay stable

https://tribune.com.pk/story/1468287/following-chaos-real-estate-markets-largely-stay-stable/


Real estate markets in Pakistan largely remained quiet in the first half of calendar year 2017 following chaos in the second half of previous year in the wake of revision in property tax rates and new property valuations.

Islamabad
Among major cities of the country, market activity was largely dominated by genuine buyers in Islamabad in the first half of 2017 with little price fluctuations.

Pindi police officer suspended for aiding alleged land grabber

The areas that performed well were Bahria Town and Sector B-17. In Bahria Town, prices for one-kanal (605-square-yard) plots rose 5.84% and those for 10-marla (302-square-yard) plots increased 4.52%.

In Sector B-17, prices for one-kanal plots increased 14.26% while rates for 10-marla plots swelled 18.05%. Growth in the sector came primarily as a result of construction of a new airport.

Lahore

There was little activity in the city and overall the real estate market remained stable in the first half. Following a positive trend at the start of the year, it was expected that activity in Bahria Town would resume. However, this did not happen because of issues in the Lahore Ring Road and in Sector-F.

High population density resulted in stability in property prices in the Wapda Town. However, LDA Avenue-1 experienced a slight drop of 2.79% in prices for one-kanal plots and 5.98% for 10-marla plots. The price dip was primarily because of litigation issues, lack of security and low level of development.

However, some areas in the city performed relatively better. DHA Lahore’s Phases I-VI recorded a growth of 3.79% in prices for one-kanal plots and 1.72% for 10-marla plots.

As these areas had a high population density, this hindered the prospects for engaging more buyers and investors. Much of the activity took place in Phases V and VI.

In Phases VII-IX, prices increased moderately by 3.29% for one-kanal and 4.2% for 10-marla plots.

A long-standing political uncertainty over the Panama Papers case has had its impact on real estate prices in some areas.

The worst-hit was Bahria Orchard where prices dropped 3.2% for one-kanal and 7.78% for 10-marla plots as many investors were attracted towards Bahria Town Karachi.

Gujranwala

Investor and buyer activity in Master City, Citi Housing and DC Colony remained stable while DHA Gujranwala recorded hefty price movements.

In DHA Gujranwala, one-kanal plots registered a price increase of 21.88% whereas prices for 10-marla plots rose 15.44%. Prices are expected to rise again as various other DHA projects slow down.

In Master City, plot prices edged up 1.44% for one kanal and 4.93% for 10 marla. Citi Housing saw price increase of 4.08% for one-kanal plots and 3.35% for 10-marla plots. Many investors in this project were attracted away by Palm City, resulting in less activity in Citi Housing.

Karachi

Bahria Town Karachi was one of the most attractive investment avenues. It was able to attract investors away from Gwadar because of its development at a rapid pace.

NAB arrests man for illegal sale of government land

Prices for 500-square-yard plots jumped 35.94% while rates for 250-square-yard land pieces swelled 43.96%. For genuine buyers, Gulshan-e-Iqbal remained the top choice.

Buyer activity in DHA Karachi and DHA City Karachi was rather sluggish. DHA City had fared well in the first quarter, but investors were then attracted towards the fast-developing Gwadar city.

“Localities that had speedy development performed better than others in H1. Moreover, localities that had infrastructure developments taking place nearby also saw significant jumps. This tells us that investors are looking at areas that will prove to be the right fit for homeowners in the future,” commented Zeeshan Ali Khan, CEO of Zameen.com – a real estate portal.

Riaz Haq said...

#Karachi's "land mafia" killing exposes the dark underbelly of #Pakistan's real estate boom. https://www.bloomberg.com/news/articles/2017-09-10/-land-mafias-and-the-battle-for-pakistan-s-booming-real-estate … via @business

Perween Rahman was returning home one evening in March 2013 from her job as head of the Orangi Pilot Project, which for years has pushed land title claims for Karachi’s poor, when she was shot three times by a gunman on a motorcycle.

Rahman died as she was rushed to hospital by her friend and colleague Anwar Rashid. “He was a sharp shooter,” said Rashid, now 71 years old and white-haired, but still a director of the OPP, pointing to his throat and chest to indicate where Rahman was hit. “This is because of the land -- the police, the mafia, all involved.”

---------
“Public land has commonly been illegally regularized and sold,” Brussels-based conflict watchdog International Crisis Group said in a February report. “It has become the city’s most prized and contested commodity, with federal, provincial and local land-owning agencies, military cantonments, corporate entities and formal and informal developers competing to extract as much value as possible. Given the fiscal stakes, disputes are settled by bribery and political, bureaucratic and police patronage, and even deadly force.”


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Some 13 different government agencies are tasked with regulating laws and coordinating development, but slums have sprung up across the city with little regard for any of these.


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Karachi’s real estate in recent years has offered better returns than Dubai and London, according to tycoon Arif Habib, who is building a $2 billion gated estate in the Naya Nazimbad district, neighboring an area that used to be controlled by Taliban militants. One of his units said on Monday that it has filed an application with the government to buy an extra 900 acres to expand the project.

Habib also pioneered and listed Pakistan’s only real estate investment trust in 2015, offering a stake in one of Karachi’s most prominent malls and office towers. Developers including Habib and rival builders such as real estate baron Malik Riaz Hussain and the military’s property arms, are tapping into the price boom.

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Rahman’s family and associates suspect her work mapping Karachi’s poor districts and helping residents gain land titles put her in conflict with powerful criminal networks. The OPP mapped more than 1,000 settlements between 2006 and 2013, though that stopped after Rahman’s death and subsequent threats and attacks on the group’s staff.

---------

One example of heightened scrutiny is property mogul Hussain’s vast city-sized Bahria Town development about an hour’s drive from Karachi. Construction began in 2014 and, when completed, the enclave will boast a 36-hole golf course, theme parks, five-lane highways, Dubai-style fountains, and what it says will be the world’s third-largest mosque.

A 125 square yard house in Bahria Town that initially sold for 1.73 million rupees ($16,000) is now between 2.4 million rupees to 3.5 million rupees, said M. Akmal Khan Khattak, a marketing manager at real-estate agent Athar Associates. He’s been recommending the purchase to his clients.

--------------

“They have provided security, they have provided electricity,” Tariq said, referring to Bahria Town. “People see their success and they will follow.”

Sindh province, of which Karachi is the capital, is now looking to computerize land records which may help curb corruption, Mohammad Zubair, governor of the province and a member of the federal ruling party, said in an interview in March. This was earlier done in Punjab, Pakistan’s most populous region that’s also governed by the same party.

“Of course the challenge will always remain,” Zubair said when asked about land grabbing. “Because the political players and people in important positions are involved.”

Riaz Haq said...

Why it's a good time to invest in #Pakistan's real estate. #realestate #property #Investment

https://www.khaleejtimes.com/business/real-estate/why-its-a-good-time-to-invest-in-pakistans-real-estate

Factors such as federal budget, law amendments and introduction of real estate investment trust have influenced sector's advancement
akistan's real estate industry continues to evolve as companies try to resolve real estate complexities in order to increase its growth, experts have revealed.

Factors such as the federal budget, law amendments and the introduction of the real estate investment trust have influenced the advancement of the industry. According to reports, investors have pulled out money from several banks in Pakistan after the introduction of 0.3 to 0.6 per cent withholding tax on filers and non-filers on tax returns.

These components, along with the rise of safe property investment bets in various parts of the country and abroad, encourage Pakistanis and non-resident Pakistanis (NRPs) to invest in valuable long-term investments compared to short-term purchases.

Showcasing the change in the industry, this year's International Real Estate and Investment Show brings the third Pakistan Property Exhibition in Abu Dhabi. The specialised event, held with the support of the Pakistan Embassy, Pakistan Business Council and Pakistan Association Dubai, showcases the country's leading developers and realty agents under one roof to showcase the best options for investment, provide spot sales and learn about the leading insights into the market. Visitors can expect to see properties from cities including Islamabad, Lahore, Karachi, Gwadar, Gujranwala and many more.

"Studies have continuously shown new global trends that the real estate market in Pakistan is tapping into. Apart from new demographic movements, Pakistan has also witnessed a heavy intercity migration over the last five years due to security and economic benefits that specific cities offer," said Antoine Georges, managing director of Dome Exhibitions. "The International Real Estate Exhibition Show enables Pakistanis to secure homes and investment properties in their country by bringing the opportunities to them through the Pakistan Property Exhibition. The pavilion aims to attract more than 10,000 Pakistani investors from the UAE."

To be held at the Abu Dhabi National Exhibition Centre from November 2-4, the exhibition enables Pakistan's realty giants such as DHA, Model Housing Lahore, New Lahore City and Bahria Town to showcase the latest properties available for aspiring buyers.

Real estate and investment companies will also have the chance to market their products to Pakistani investors through well-tailored marketing strategies made available by marketers such as Athar Marketing, Star Marketing, Midas Group and Q&A Marketing and more.

Rashid A. said...

To Pakistani diaspora who haven't visited home for a while:

You should go back and visit. You would be surprised!

Pakistan in your mind may be frozen in time, but real Pakistan has changed. Everything has changed.

You will find both familiarity and alienness there. It would appear to you like a dream. Or perhaps like being on Star Trek Holodeck, where things are familiar but there are new actors, and you are still a stranger.

First thing that would hit you would be the increase in population. Too many people compared to the time you left Pakistan. Some areas that were farms and free spaces when you were there would now be occupied by new housing developments.

The physical appearances would have changed. There would not be any complete transformation to prosperity, but new buildings replacing old ones, new motorways, would change the physical reality.

You would find distances have shrunk.
The places that seemed far away because you walked to them or went on bicycle, would appear to be so near because now you would travel by car.

You would meet someone, with white beard, bald head, missing teeth, and perhaps walking with a cane, who be introduced to you as your classmate. You would be blown away by the ravages of time, and be grateful for your health.

A middle aged woman with young children would come to visit you. And she will turn out to be the daughter of a cousin or a friend, who was just an infant at the time you left Pakistan.

And finally, as you relive the memories of your childhood, you may find a reason to visit again and again.

Riaz Haq said...

#Dubai's Abraaj invests in #Pakistan #cinema operator; Plans to build 80 new screens in next 4 years. #FDI #Theaters

http://www.arabianbusiness.com/industries/banking-finance/380400-dubais-abraaj-invests-in-pakistan-cinema-operator

Dubai-based Abraaj Group has announced it has invested in Cinepax Limited, Pakistan’s leading cinema operator.

With Abraaj’s investment, the value of which has not been disclosed, Cinepax plans to develop 80 new screens across multiple locations over the next four years and also grow other entertainment related ventures, Abraaj said in a statement.

Arif Baigmohamed and Pir Saad Ahsanuddin established Cinepax in 2006 and launched their first multiplex in 2007. Since then, the company has established itself in the market and today has 29 screens in 12 locations.

Pakistan’s entertainment industry has significant growth potential, with a low ratio of cinema screens (0.5 per million population).

Abraaj said it will support the company in establishing international standard multiplex cinemas in new and upcoming areas.

Omar Lodhi, partner for Asia at The Abraaj Group, said: “Our investment into Cinepax demonstrates our faith in the opportunity that Pakistan’s young growing population and expanding middle class represents.

"As one of the most active investors in Pakistan, with a strong on-the-ground presence, we see a long-term market opportunity in the cinema operator and video streaming business.”

Arif Baigmohamed, chairman of Cinepax, added: “We are delighted to welcome Abraaj as an investor into our business and look forward to partnering together to reach more people across the country, providing much needed entertainment options.”

The Abraaj Group has been present in Pakistan since 2004. This transaction marks Abraaj’s ninth investment into Pakistan across a number of sectors including healthcare, power distribution, renewable energy and industrials.

Riaz Haq said...

Pakistan’s developers unfazed by recent price drops
They rate the charged political situation as being the cause rather than market fundamentals

http://gulfnews.com/business/property/pakistan-s-developers-unfazed-by-recent-price-drops-1.2108306

Pakistan’s developers are not going to get caught up thinking short-term.

That’s why they seem to be taking in their stride the near constant political turmoil, a relatively overvalued currency, and the fact that property values are down by nearly double-digits from what they were just under a year ago. And developers — whatever be their size — are keen to emphasise that these are only short-term hurdles to climb over.
That is why Zeeshan Zaki, Director at Karachi-based Saima Builders can say: “For quality developers and developments, there has been no shortage of demand. Projects continue to be sold regardless of the political turbulence … such is the shortage.
“Since 2011, property prices have gone up by 5-6 times and even higher in many cases. While this may sound extremely high, it is important to remember that it has come from an extremely undervalued position. And even today remains undervalued relative to its peers in the region.”

Non-resident Pakistani buyers have had much to do with demand spike since the start of the decade. It was also the time that developers started to favour sprawling gated communities, and which managed to pick up significant interest from buyers in the Gulf.
But a key component enabling the upturn was the soft Pakistani rupee for the better part of the decade. That is not the case now.
“The rupee remains overvalued from a trade perspective, and something that has been stated by the IMF,” said Sameer Lakhani, Managing Director of the consultancy Global Capital Partners. “The government thus far has been reluctant to devalue the currency, because they reckon structural reforms are needed rather than just a mere devaluation.
“However, if we are took at past performance, it is highly probable the currency will move lower within the next 12 months.”
Currently, a dollar fetches Rs105.38, but in summer this year had dropped to Rs108.09. The IMF in some of its recent pronouncements have suggested the currency is about 20 per cent overvalued.
Any devaluation move could turn into a boom time for the country’s developers, more so if overseas Pakistanis feel the recent drop in property values further improves their prospects.
Across all of the prime cities, recent months have seen corrections, in some instances quite sharp too. In the upscale areas, values are now down by 5-15 per cent, while in second-tier neighbourhoods, the hit has left quite a dent in values, down 20-25 per cent, according to market sources.
“The situation will remain somewhat turbulent on the economic front until the political situation stabilises,” said a developer. “Investors hate uncertainty and these appear to be uncertain times.”
It could be that the real estate market — and the wider economy — has to wait until after June 2018 before a clearer picture emerges. The next general elections are due then, and a clear mandate from voters should smoothen some of the rough edges on the political front.
Zaki, for one, remains convinced the property market has what it takes to take on the recent turbulences. “I maintain that property values have only just started to recede that too in select areas and predominantly because of the political situation in Pakistan,” he added. “Fundamentally, the country remains severely undersupplied in terms of quality housing, a situation that is expected to remain for much of the coming decade.”
Most developers are thinking in the longer term. Despite the price drops, the number of project launches have not seen receded. Market sources suggest that what is absent is the speculative buying, and that can only return when the political situation corrects itself.

Riaz Haq said...

SIKA EXPANDS IN PAKISTAN WITH NEW PRODUCTION FACILITY

https://globenewswire.com/news-release/2017/10/18/1149038/0/en/SIKA-EXPANDS-IN-PAKISTAN-WITH-NEW-PRODUCTION-FACILITY.html

With the commissioning of a new factory for mortar products and concrete admixtures, Sika has expanded its manufacturing capacity in Pakistan and is responding to the country's construction boom. Demand in the infrastructure and residential construction segments in particular is enormous. With its rapidly growing population of over 200 million, Pakistan is one of the world's most populous countries.

The new factory for concrete admixtures and mortars is located in Pakistan's second biggest city - Lahore, in the north of the country and one of the world's largest metropolitan regions. With the new investments and the simultaneous relocation of an existing mortar manufacturing facility from Lahore to Karachi in the south of the country, Sika is creating the basis for future growth in a booming market. It is estimated that the construction industry in Pakistan will grow on average by 12% a year between now and 2020.

Ivo Schädler, Regional Manager EMEA: "Our expansion of local production capacities is in response to existing bottlenecks. The new facility in the north and the expansion of our location in the south will enable us to continue to grow significantly faster than the construction market in Pakistan, and hence to strengthen our competitive position thanks to local production. Our focus in Pakistan is on the Concrete, Refurbishment and Flooring target markets, in which we want to continue driving forward our business activities."

Riaz Haq said...

UAE's Danube eyeing larger footprint in Pakistan
Waheed Abbas/Dubai
Filed on October 18, 2017 | Last updated on October 18, 2017 at 08.17 pm

https://www.khaleejtimes.com/business/real-estate/danube-eyeing-larger-footprint-in-pakistan

Pakistani nationals are one of the largest investors in Dubai's real estate sector
Real estate firm Danube Group aims to strengthen its presence in Pakistan by attracting more investments into its property portfolio, and is also expanding its home furnishing brand into the South Asian country.

"Pakistan is strategically a very important market. We are searching for a right franchise partner there. Some investors have shown interest, [so] we are evaluating the right partner. Post completion of the market research and study, we are looking to open stores across major cities of Pakistan. Though the location is still not decided, we will plan the location based on our research analysis," said Adel Sajan, director of Danube Group.

He pointed out that Danube Home stores usually span an area between 5,000 sqft to 10,000 sqft for boutique concepts and 25,000 sqft to 45,000 sqft for the big box concept, with an investment ranging between $400,000 (Dh1.468 million) to $2.5 million (Dh9.175 million), depending on the size of the store, number of stores and operating cost in the country. In order to tap Pakistani investors, the Dubai-based group recently appointed cricket captain Sarfaraz Ahmed as its ambassador in Dubai.

Atif Rahman, director and partner at Danube Properties, told Khaleej Times in an interview that the group's customer base from Pakistan is expanding fast, therefore, it's important with over 200 million population to focus on the market and reach out to customers there.

"Right now, between seven to eight per cent of investors - and revenues - are from Pakistan. In terms of sale value, we are talking about Dh200 million-plus investments by Pakistani nationals in to Danube's projects. We are also seeing month-on-month increase in investments that motivated us to be associated with a brand ambassador from that market and also start venturing into that market locally. Therefore, you will see a lot of road shows and activities in Karachi and Lahore at the end of October and early November," Rahman revealed during the interview.

Meanwhile, Pakistani nationals are one of the largest investors in Dubai's real estate sector. A recent statement by Dubai Land Department said that Pakistani nationals made 5,398 real estate transactions worth nearly Dh7 billion. Pakistan's Federal Board of Revenue recently told parliament that its nationals had parked $8 billion (Dh29.36 billion) in to the UAE's - mainly in Dubai - real estate sector.

Rahman said: "Without any doubt, our business from Pakistan is going to grow. There is a consistent demand for construction material as well as properties. We have a very traditional, conventional and organic way of expanding business. We go out on a small scale and grow it strength-by-strength. Right now, we have added two cities of Karachi and Lahore; if the response continues to be good and numbers are increasing, we will continue to invest. There is no upper limit - it's purely organic and based on the confidence in the market," he noted.

Riaz Haq said...

Development firm announce plans for first master community development for private market

"We believe Gwadar is following in the footsteps of Shenzen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia."

http://www.prnewswire.co.uk/news-releases/china-pak-investments-acquires-project-in-gwadar-pakistan-648608313.html

Leading private investment house China Pak Investment Corporation today announced its acquisition of the 3.6 million square foot International Port City project in the city of Gwadar. The investment company is currently revising the scheme's plans in line with international developments standards and will be developing the first of its kind $150 million gated master community tailor-made for the expected 500,000 incoming Chinese professionals expected in Gwadar by 2022.

(Photo: http://mma.prnewswire.com/media/564249/China_Pak_Hills_Phase_1.jpg )
The project which is expected to be renamed China Pak Hills hails an exciting new phase in the development of the port of Gwadar, the 'Gateway City' to the $62 billion China Pakistan Economic Corridor (CPEC), the largest unilateral foreign direct investment from one nation into another. The CPEC is set to catapult Pakistan's stature as a key global trade and economic hub and includes a bouquet of projects currently under construction that will not only improve Pakistan's infrastructure, but will deepen the economic and political ties between China and Pakistan.

Hao-Yeh Chang, Corporate Communications Director for China Pak Investments Corporation commented, "We believe Gwadar is following in the footsteps of Shenzen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia."

The final master plan for China Pak Hills is currently being refined in Hong Kong, and will feature a range of state-of-the-art amenities including an open-air shopping boulevard; indoor shopping mall; restaurants and eateries; an international school & nursery; six community parks; indoor and outdoor sports facilities including tennis courts and a resident's gymnasium; a water desalination plant and recycling centre. China Pak Hills will also be home to the Gwadar Financial District, catering to the growing financial sector and adding much needed A Grade office space to Gwadar's growing market.

One Investments Ltd, a UK-based property investment company, headed by Zeeshan Shah, have been appointed as Global Master - Agent for the Development. "China Pak Hills is a unique and exciting opportunity. The level of investment and commitment made by the Chinese government in the CPEC guarantees that Gwadar is going to be one of the most important trading and access points in the World. Its geographic position, combined with the infrastructure being created through the CPEC means that it can only grow exponentially."

The China Pak Hills master-community is being developed by China Pak Investments and is soon expected to announce options for private sale of limited plots to end purchasers.

Riaz Haq said...

THE EXPRESS TRIBUNE > BUSINESS
Pakistan’s construction industry – the hot cake for foreign investors

By Tehreem HusainPublished: October 23, 2017

https://tribune.com.pk/story/1538687/2-infrastructure-building-pakistans-construction-industry-hot-cake-foreign-investors/

The construction industry is playing an important role in economic growth of Pakistan. Recent (provisional) estimates published in the Economic Survey of Pakistan show that the industry grew 9.1% in FY17 and contributed 2.7% to the country’s gross domestic product (GDP).

BMI Research has also provided a healthy growth outlook for the sector, putting it at 11.8% annually from 2016-20 and 9.1% over 2016-25.

The signing of the China-Pakistan Economic Corridor (CPEC) agreement and improvement in the country’s security situation have been the key to giving boost to not only the construction industry, but Pakistan’s image abroad. With China having the first-mover advantage in injecting foreign investment into the country, other countries have followed suit.

The sector has also been an important recipient of foreign direct investment (FDI). This can be judged from the latest figures provided by the State Bank of Pakistan, which show that the construction industry received a net inflow of $35.7 million in August 2017.

How attractive the industry is perceived to be for foreign investors can be gauged from the fact that in the current fiscal year from July-August FY18 the industry has received $55.7 million relative to $1.6 million in the same period of last year.

Locally, investment has also been boosted by government policies such as reduction in duties and taxes on building materials like steel, construction machinery and equipment and computerisation of land ownership records.

Riaz Haq said...

EMAAR: Crescent Bay, Karachi

https://www.dawn.com/news/1300853


DAWN.COM | EMAAR PAKISTAN PARTNERUpdated Sep 09, 2017 02:27pm

Crescent Bay, the seafront wonder of high-rise towers set along three crescent shaped bays, will soon become your one-stop-shop solution to life, work and play.

Offering a safe and vibrant community atmosphere, Crescent Bay will combine breathtaking natural beauty with a blend of traditional and contemporary architecture. Few would be able to resist the lure of this most sought after address in the metropolis.

Most images below are interactive and can be viewed in 360 degrees. Click and hold inside the frame to move around in the surroundings (press and swipe on mobile)

View
With a spectacular location in the DHA Phase-VIII Extension next to Dou Darya, Crescent Bay enjoys a beautiful two-kilometre seafront along the shores of the Arabian Sea. And the three curved coastal bays give Crescent Bay a unique character.


Kitchen
The apartment buildings in Crescent Bay will feature a designer-fitted kitchen, with a marble bench top and an imported stainless-steel sink with mixer tap.


Bedroom
The apartment buildings will feature one to four bedrooms per flat. Each bedroom will come with a fitted wardrobe.

Riaz Haq said...

THE EXPRESS TRIBUNE > BUSINESS
Construction sector records impressive 9% expansion

https://tribune.com.pk/story/1419502/construction-sector-records-impressive-9-expansion/

The construction sector has once again posted a strong growth of 9% in the outgoing year, lower than the 14.6% increase in 2016, but much higher than the average growth of the past five years, according to the Pakistan Economic Survey 2016-2017.

Excluding the exceptional growth of 2016 and 2017, the average growth in the construction sector up to 2015, since FY12, was just 4%. Construction industry officials believe the recent growth is encouraging for the industry as well as the country because this will create new jobs.

According to government estimates, construction-related activities will gain further momentum on the back of increased public sector development spending coupled with infrastructure and power sector development projects under the China-Pakistan Economic Corridor. The construction sector contributes 2.4% to Gross Domestic Product, according to government assessments.
The robust construction activities also led to an increase in demand for steel and allied products, according to the survey.

“Cement growth derived from robust domestic demand, which allowed manufacturers to enhance their capacity utilisation. The outlook is encouraging on account of firm demand due to flourishing housing schemes and rising development spending along with anticipated CPEC-related projects,” it added.

Govt may withdraw special income tax

Despite extraordinary growth, the government is upset as it did not achieve its tax collection target from the sector in the outgoing fiscal year. “It is true that we could not collect the targeted amount from the real estate sector in this year,” said Finance Minister Ishaq Dar on Thursday.

However, he said that tax collection increased after the implementation of the new property valuation methodology by the Federal Board of Revenue in 2016.

Dar also said that construction industry officials requested the government to gradually implement the new tax regime, otherwise it could hurt the current high growth of the industry. Revenues from the construction sector dipped to a meagre Rs112 million in the outgoing fiscal year against conservative official annual estimates of Rs8 billion.

The representatives of builders and developers committed to tax authorities that the industry would pay up to Rs28 billion in income taxes under the new final tax regime, which was implemented in mid-2016.