Why property prices are inching up in Lahore

If we talk about overall condition of Pakistan Real Estate, it is not quite encouraging. According to the latest reports, property prices have maintained status quo for the last 6 years. Experts believe that due to deteriorating economic conditions and increasing allegations of corruption on the government is the main reason why local and foreign investors cannot build their trust in real estate of Pakistan.rnAlthough the real estate business is Pakistan is moving at a slow pace but out of the real estate of all cities, Lahore real estate is considered the most secured investment. In May, it was predicted that Lahore property market will remain sluggish for the next three months but this prediction proved to be wrong. The overall property prices in Lahore have been inching up from the start of this year. Especially, the two posh areas of Lahore, DHA, and Bahria Town, have showed tremendous increase in property values. rnAccording to Express Tribune’s report, the price of one canal plot in DHA has risen up to Rs 3 million in the month of July and August. Based on these figures, real estate agents in Lahore are expecting a further increase in prices, not only in DHA but in other well-known areas as well. rnA detailed research on Lahore real estate has helped me figure out three reasons of the rising property prices in Lahore.rnMigration from Karachi rnKarachi is the city of lights, which is undoubtedly the business hub due of Pakistan and its importance is doubled due to the major shipping seaports located here. Unfortunately, due to poor law and order conditions in the city, unrest and corruption is increasing. This is making it harder and harder for the families to survive and they have stated migrating to peaceful cities, like Lahore. rnThe residents of Karachi have stated buying properties in Lahore, which according to a latest report, has boosted Lahore Property prices up to 30%. Not only from Karachi, the residents of other cities like Peshawar and Quetta are also migrating to Lahore due to many factors.rnScope of Tax evasionrnMany experts think, Lahore property market is poorly regulated and there is a great room for tax evasion. Many investors are shifting there assets to Lahore real estate in a attempt to evade tax from Federal Board of Revenue. The investors have started transferring their plots and houses to the relatives residing in Lahore and do not list the property in their personal assets and thus remain exempted from tax. This is mobilizing assets and money in Lahore real estate, which is inching up the property prices. rnBetter infrastructure rnIn Lahore, infrastructure and quality of life, as compared to other cities of Pakistan, is much better. DHA 6, 7, 8 and Behria Town are the few areas, which received maximum increase in prices in the last 2 years. This is because these areas offer modern lifestyle with high quality infrastructure and amenities. It is only due to such posh areas that Pakistan real estate is showing resistance to the various factors posing threat to it.rnNot only these areas, the other societies like model town, Gulberg, Johar Town, NFC society, Wapda Town society, Lake Society UET and PU society also offer spacious houses, magnificent laws and beauteous sceneries. These societies have built their schools and recreational laws to add value to the living areas. Such modern housing societies are encouraging real estate investors to look for houses in Lahore. All of these factors combine to make Lahore real estate much attractive for the people, investors, and real estate agents.