Monday, October 3, 2016

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

4 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.”