Gated Communities Proliferating in 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 cafĂ© 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

Comments

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…
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.

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