Bahria Town Lahore Prices Plots For Sale Sector A B C D E Safari Villas

Lahore Real Estate Sector See Upward Trend in Prices

Price of a plot: Rs3m is the increase in price of one kanal

LAHORE: Lahore’s real estate sector, which has been under immense pressure due to lack of investment and trust, especially after the breakdown of the boom observed between 2003 and 2005, has finally started to rebound. The recovery has taken seven years, but this time it builds on more solid grounds.

Lahore’s real estate revolves mainly around the Defence Housing Authority (DHA), which has expanded massively in recent years. Although there are similar housing societies in the city which provide comparable living standards, prices for land in DHA are more volatile and sensitive to investor sentiment.

For the past year and a half, prices of plots in DHA have witnessed a steady upward trend. Price increases in some blocks have crossed even the 100% mark. For instance, the price of a residential plot in DHA Phase-8, a prime location in front of the Lahore airport, is around Rs11 million for one kanal of land. The price of that same plot around two years ago was around Rs4.5 million. Similarly, a one kanal plot in Phase-6, available two years ago for around Rs6.5 million, now costs Rs12 million.

Bahria Town, located on the other side of the city, has also witnessed an uptick in plot prices. Bahria Town, which has shot to prominence over the last decade, has witnessed a nearly 60% increase in prices for one kanal plots. A one kanal plot, available one and a half years ago for Rs5-5.5 million, is now available for Rs8-8.5 million.

And although the housing market is currently taking a breather, real estate agents say that transactions are still taking place. After the announcement of elections, prices of land have fallen slightly all over Lahore, but investors are firm and are not willing to sell their properties.

“The increase in prices this time round was solid, unlike the boom we witnessed between 2003 and 2005, when prices of land increased abnormally,” said Sadaqat Ali, managing director of Pak-Estates, a realty firm. “Price fluctuations for a one kanal plot in DHA at that time often crossed the million rupee mark in a single day.”

“But investors are now coming to invest in property from Karachi, Quetta and Peshawar due to the law and order situation in these cities. A major chunk of investment is also coming from overseas Pakistanis, as they think that investing in DHA Lahore is the best option for their savings,” he said.

“Investors as well as real estate agents are not worried about today’s market situation, unlike in 2006, when we were helpless,” said Shahid Memon, a realtor who migrated from Karachi and now has stakes attached to Lahore’s real estate sector. “In fact, we want a slight correction in prices of plots for an option to reinvest.”

“We do not think that prices will fall by more than Rs0.5 million for plots worth around Rs10 millions, as investments made this time round are genuine,” continued Memon. “People are now focussing on starting to construct houses; either for themselves, or to rent them out. As soon as the election drama ends, the market will again go upwards, as right now, no other sector of the economy is providing such wonderful returns,” he added

Source : http://tribune.com.pk/story/527426/lahores-real-estate-on-the-rebound/

Tags : Lahore Real Estate Sector See Upward Trend in Prices, Lahore Real Estate, Lahore Estate.

ISLAMABAD: American real-estate tycoon Thomas Kramer and Bahria Town CEO Ahmed Ali Riaz Malik signed a $20 billion agreement for Pakistan’s first-ever Island City, Bundal & Buddo Islands, Karachi.

A joint consortium of international investors will join hands to develop this project and the deal with Kramer is the first level of this agreement. Announcement of other global investors from the Middle East and around the globe will be made soon.

Covering 12,000 acres of land, this project will be developed in a span of 5-10 years but the residential communities will start being handed over to people in 2016. The global attractions of the project comprise world’s tallest building, world’s largest shopping mall, sports city, educational & medical city, international city and a media city – all having the most modern facilities and amenities and the most advanced infrastructure.

Island City will be connected to the DHA Karachi via a six-lane modern bridge. The entire city will be a ‘high security zone’, having its own drinking water (converting seawater into drinking water) and power generation plants to enable it to be self-sufficient in electricity.

The project will have mosques, cinemas, spas, golf clubs, school, hospital and other global standard amenities to furnish a modern lifestyle.

Speaking on the occasion, Thomas Kramer said, “I have full confidence in the people and economy of Pakistan. In 1970 when I started my project in Germany it was the worst era of their history. Likewise when Miami Beach project was started, the area was in full control of Cuban criminals, different mafias and gangsters. Dead bodies used to be scattered on the beaches. I completed my projects successfully. Today they are the world’s most secure and advanced regions.

“Current situation in Pakistan is much better than those areas. I am confident that this project along with boosting the economy will also eradicate terrorism from Pakistan. This is a once in a lifetime chance to bring Pakistan back on the map to the leading nations in the world.”

The current consultant and former chairman of Bahria Town, Malik Riaz Hussain, said, “Our slogan is ‘Bahria Town Commits – Bahria Town Delivers’ and Alhamdulillah we have fulfilled all our promises made with Pakistan and Pakistanis. We know that the construction sector has played a key role in transforming the USA, Malaysia, Japan, Turkey and Germany into developed nations. In the same manner, Insha Allah, Pakistan will also become a developed nation, which is our vision. This project will not only provide 2.5 million jobs but will help revive 55 national industries and provide housing to 1 million Pakistanis. It will also help eliminate terrorism and crimes.”

Thomas Kramer is a visionary businessman commonly known as TK. He surveyed an island hideout of Cuban pirates in 1991-92 and later on developed it into the present day Miami Beach, which is one of the biggest international tourist destinations today. He is specialist in building skyscrapers in coastal areas. His company has successfully constructed several projects around the globe.

Tags : Bahria Town, Bahria Town Lahore, Bahria Town Malik Raiz Hussan, Island City Bahira Town,

Sellers of immoveable property in Pakistan to pay 0.5% advance tax, besides CGT

ISLAMABAD: Federal Board of Revenue (FBR) has clarified since Capital Gains Tax (CGT) ranging between 5 percent to 10 percent has been imposed only on disposal of properties held for a period up to two years therefore, advance tax at the rate of 0.5 percent is also to be collected from sellers who held the immoveable properties for a period up to two years.

Capital gains on immovable property: Prior to the 18th Constitutional Amendments effective from April 19, 2010 entry 50 of the Federal Legislative List contained in Part-I of the Fourth Schedule to the Constitution of Islamic Republic of Pakistan empowered the Federal Legislature to levy taxes on the capital value of the assets, not including taxes on capital gains on-3-immoveable property. The words ‘on capital gains’ were omitted by the 18th Constitutional amendment. The effect of omission of these words is that the Federal Legislature cannot impose taxes on capital value of immoveable property but can levy tax on capital gains on disposal of immoveable property.

In view of the aforesaid modified constitutional position exemption to capital gains on the disposal of immoveable property held for a period up to two years was withdrawn by making amendments in section 37 of the Income Tax Ordinance, 2001 through the Finance Act, 2012. Simultaneously, a new Division was added in the First Schedule to the Income Tax Ordinance, 2001 giving the following rates of tax to be paid on capital gains from disposal of immoveable property.

Where holding period of Immovable property is up to one year the rate of tax would be 10 percent and where holding period of immovable property is more than one year but not more than two years tax rate to be 5 percent.

To overcome the administrative problems in respect of collection of CGT on disposal of immovable property and to keep a track of the transactions of immovable property adjustable advance withholding tax at 0.5 percent of the consideration received on sale transfer of immoveable property was levied on sellers transferors of immovable property under section 236 C of the Income Tax Ordinance, 2001.

It is clarified the advance tax to be collected under section 236 C has been introduced for the purposes of providing a mechanism for collection of CGT on disposal of immovable property. The actual quantum of capital gain and tax payable thereon is to be computed at the time of filing of return of income. Section 236 C is not an independent provision and does not operate in isolation. Since CGT has been imposed only on disposal of properties held for a period up to two years therefore, advance tax is also to be collected from sellers who held the immovable properties for a period up to two years. staff report

Tags: Pakistan Property News,Pakistan Property Tax

http://www.dailytimes.com.pk/default.asp?page=2012\07\29\story_29-7-2012_pg5_6