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Best Housing Schemes in Islamabad for Investment in 2017

best housing schemes for investment in Islamabad in 2017

As the new year has started, there are visible trends which help us determine the best housing schemes for investment in Islamabad in 2017. Last year, as we know already, some societies gained their peak prices, while some had least sale purchase activity. This is important for you to know that if you buy something at peak prices, you are more likely to suffer quick losses, however if you buy something which has just started rising due to certain development and investors are moving towards that area, then you can safely invest in a good location plot and most likely you will earn hefty gains in short term.

If you know about the economic cycle, there is always a decline after a peak, and then there is recovery period which again leads up to the peak point. Both positions i.e. crest(peak point) and trough(lowest point) are always transitory, so only those who can hold their investments during the recession phase earn good value during the recovery phase. Time is normaly the varialbe which determines how soon something can reach its peak or decline. But if you see the image attached below, you will know that things are ultimately improving despite the ups and downs, which means you definitely gain something in the long run.

economic cycle

Normally real estate investments are made for long term, however, involvement of millions of investors from across the country as well as abroad has made real estate a tradable commodity. Due to this phenomenon, you may experience quick gains or quick losses in a certain investment. Normally a number of intrinsic & extrinsic factors determine the value of some housing scheme, i.e. location, development standards, amenities, services, maintenance, security, road access and nearby facilities (schools, colleges, hospital, airport, government departments, motorway etc), but normally short term investors seek opportunities which are more dependant on extrinsic factors.

For Example, Islamabad Highway Signal Free Corridor project has caused prices to increase in the housing schemes situated along this road, i.e. Gulberg, Naval Anchorage, DHA, Jinnah Gardens, Soan Gardens, River Gardens, PWD etc. Similarly, AWT and ECHS prices rely on the interchange project that will provide direct access through Motorway, Margalla Avenue project will affect prices in D-17 and B-17, and New Islamabad International Airport Project is affecting prices of many of the housing schemes including Top City-1, Mumtaz City, Faisal Town and PECHS. Rawalpindi Ring Road plan will affect prices of Bahria Town Phase 8, DHA Phase 3, DHA Phase 4 and other surrounding housing schemes from Rawat to Adyala Road.

Coming back to the topic, as we know already that New Islamabad International Airport project is undergoing major developments and the given inauguration date is 14th August 2017. We also know that Kashmir Highway Extension project is underway and the link road to new Islamabad Airport will open in a few weeks, and same road will be used for the metro bus service to the airport, therefore, we will include many housing schemes in this area as best options to invest in 2017.

Last year,  we saw price rises in Bahria Enclave, Jinnah Gardens, Gulberg, Top City-1, Faisal Town, DHA Phase 2, DHA Phase 2 Extension, DHA Phase 3, DHA Phase 4 etc., this year, we can slightly shift our preferences in order to capitalize on the opportunities lying ahead of us due to some mega developments in Islamabad.

Find attached the masterplan of Islamabad below to identify different zones and respective locations in Islamabad:

Islamabad Masterplan

Following is the list of housing schemes which are expected to perform better this year:

Zone 2:

Folloing housing schemes are considred best for investment in Islamabad zone 2 and specified area near new airport:

Zone 4:

Following housing schemes are considered best for investment in Islamabad zone 4:

Zone 5:

Following housing schemes are considered best for investment in Islamabad zone 5:

We will share brief introduction, past history and future prospects of each of the listed housing schemes so that you can make a better investment decision.

Top City-1

Top City-1 Islamabad

Top City-1 Islamabad lies at the junction of motorway m-1,m-2 with direct access from kashmir highway extension. It is partially developed, and considered best for investment in 2017 due to a number of external factors including opening of kashmir highway access, inauguration of new airport, and inauguration of metro bus service to new airport.

Prices have already increased by almost 100% in last one year, and there is much more room for growth provided that the government ensures timely completion of underlined projects. Completion of these projects is quite likely this year than ever before, as this is the last year of this government in power, so they will make every effort to put their tag on these mega projects before next elections.

Mumtaz City

mumtaz-city-islamabad

Mumtaz City Islamabad lies at the juction of motorway m-1, m-2 with direct access from kashmir highway extension. It is located right next to Top City-1, so it is expected to avail all the benefits coming in this area due to new Islamabad Airport. It is currently partially developed, and pace of development is slow as compared with Top City-1. 

Since Mumtaz City has limited area reserved for residential plots, there is always a shortage of plots which keeps demand higher. Prices of Mumtaz City have also increased by more than 50% in last one year, and there are high chances of further improvement this year.

Faisal Town

faisal town

Faisal Town lies on Fateh Jang Road near fateh jang exit on motorway m-1. It is a good housing scheme with high development standards and good pace of development. It is currently partially developed, however development progress is applaudable. Prices already increased much in 2016, and normal growth rate was from 25% up to 50%. 

This year also brings better prospects for investment in Faisal Town as some constructions have started already in its commercial Markaz, and people are considering this society for their residence in future. Impact of new Islamabad Airport and expansion of Fateh Jang road will definitely be quite visible this year on plot prices of Faisal Town, so you can expect good return on your investment today.

PECHS Housing Scheme

pechs-main-gate

PECHS has suffered a lot during this slow phase of inactivity in this area over the past 2 years. Due to delays in airport project, people lost their interest in this housing scheme, moreover, lack of interest of developers caused people to shift their investments to other societies. Prices didn't increase a bit in past 2 years, however now is the time to buy something in PECHS. 

As prices in all good neighboring societies are almost double of those in PECHS, we can see some positive trends this year. There are currently limited plots available at very reasonable prices in the market and some investors are buying plots already. Once there is shortage of plots, you won't find these prices in any developed and legitimate society in this area.

As the society is already quite developed and has all basic facilities available like water, electricity, gas, sewerage system and security etc, it will surely attract those who want to live near new Islamabad Airport. So, there are high chances that you will earn short term gains by investing in PECHS.

If the management of PECHS could take on their responsibility and do the needful, PECHS would have rendered good return to its investors already. Now it is just due to location and mega developments in the surroundings which determine the value of property in PECHS.

PAF Tarnol Housing Scheme

paf tarnol

PAF Tarnol is a developed housing scheme located on main fateh jang road. It is considered to be one of the best housing schemes in this area due to the background of Fazaia. This society is also quite populated already with all facilities available, so it is considered to be one of the best options for investment in this area due to the upcoming housing requirements near new Islamabad International Airport.

Prices have been quite stable and growing steadily over the past couple of years, but you can expect major price jumps in this housing scheme due to mega developments in the surrouding. Expansion plan of Fateh Jang road is also approved, and initial work has started, this development will also have positive impact on prices of housing schemes located on this road.

AWT and ECHS D-18

sector d-18 islamabad awt echs

AWT and ECHS have seen slow activity over the past 3 years, however market seems to be improving since the 3rd quarter of 2016. As these socieites are quite developed with possession, and major access issue is almost resolved after the direct access is opening very soon through an interchange on motorway, there is much higher growth potential in these two housing scheme.

Due to increased investment volume in zone 2, property prices in AWT and ECHS have also improved a bit over the past few months, and the same trend is expected to continue this year. This is the right time to invest in some good location plots in either AWT or ECHS, as both societies promise good return.

MPCHS Multi Gardens B-17

multigardens

Multi Gardens B-17 has seen a severe downturn in prices after its peak in 2013, and it is still struggling to regain its potential. Development works in MPCHS B-17 slowed down after Faisal Town became the center of attention for its chairman. However, since MPCHS is a big name and has a chain of investors, they have worked hard to keep things going in B-17. 

Many new projects of apartments and villas have launched recently which are under construction, and also you can see much population has settled down in blocks B & C. There are access issues until it gets motorway access or margalla avenue access, however as huge investments are expected in zone 2 this year, B-17 can definitely get its share due to being the most developed and populated housing scheme with high development standards and all living amenities.

Faisal Residencia E-17

faisal residencia e17

Faisal Residencia E-17 launched in 2016 and it has started selling on profit already. The society is owned by Zedem International, so we expect that development work will be fast and standards will be high. Since the project is in initial stage and plots are available on installments, we can expect good return this year as soon as development work starts here.

Since there is no direct service road which leads to E-17, we have to go either through E-16 or through F-17. Still, owing to a strong back ground and being a proper CDA sector, its future is very bright and we can invest in residential or commercial property here for quick gains this year.

MIECHS G-16

G-16 MIECHS

G-16 has already gained attention of investors due to its location on Kashmir Highway. It is one of the cheapest sectors located in G series, and people are blindly going for purchases here. But you must be sure about what you are buying in G-16.

Majority of area in G-16/1 and G-16/2 is not under possession of the society, so you don't need to jump into something like that. All you need to do is to find out some good plots in G-16/3 and G-16/4 for investment. Even if plots are not developed, the plot must be clear from all issues. Sectors like G-13, G-14, G-15 and G-16 will make the most of new Islamabad Airport project, so you can consider the cheapest one G-16 for your investment this year.

Bahria Enclave

Bahria Enclave Islamabad

Bahria Enclave Islamabad is located on Kurri Road at about 5 minutes drive from Park Enclave. It has high standards of development and high growth potential. it is considered to be an ideal place for investment or residence in Islamabad. It is more than 50% developed, whereas remaining area is under speedy development.

Plot prices have increased by 20% to 50% in last one year, and there are high chances that this growth pattern will continue in 2017. As new blocks are getting possession, and new houses are being constructed in various blocks, many genuine buyers as well as investors consider it one of the best places for investment or residence.

Bahria Enclave managed to stabilize itself very soon after the recession period in 2014, and the trend seems positive this year also, therefore, we can suggest it as one of the best housing schemes for investment in 2017.

Park Enclave

parkenclave

Park Enclave Islamabad is a housing project by CDA located near chak shahzad at the intersection of park road and kurri road. It has two phases located opposite to each other. It has seen good price rise after some possessions were announced last year. More than 100% price increase has also been observed in some cases, but mostly plots gained from 25% to more than 50% in value.

Since this is a project by CDA, which is usually considered to be highly rewarding and free from any issues at all, there are high chances that non-developed plots will gain much in value this year as the development work goes smoothly.

DHA Phase 5

DHA Phase 5 Islamabad

DHA Phase 5 or previously known as DHA Phase 2 K,L,M,N,P,Q blocks have also performed much better in 2016 and prices increased by about 25% to more than 50% in some instances. Since Islamabad Highway Signal Free Corridor project is underway, so we can expect that prices will keep increasing smoothly in this area.

If you want to invest somewhere with lowest risk, you have no better choice than DHA Phase 5 as it has been stable for past 3 years and growth is continuous. There is still much room for growth as phase 2 is quite expensive as compared with phase 5, so majority of new buyers focus on DHA Phase 5 for investment.

DHA Valley

DHA-Valley-Islamabd-Entrance4

DHA Valley will always be included in the list of best investment options in Islamabad due to the fact that it is the cheapest available option in DHA and everybody knows that it is a dark horse. Because on ground developments are going well since last year, which resulted in homes prices to increase by 20% to 30% and commercial prices to increase by 30% up to more than 70%, but there is much higher potential still to be realized as soon as some possession is announced.

You can invest in better blocks of dha valley which are accessable, and which are clear from encroachments. These blocks include oleader, lily, daffodils, magnolia, sunflower and bluebell.

Bahria Town Phase 8

bahria phase 8 rawalpindi

Bahria Town Phase 8 is located on GT road near DHA Phase 1 Islamabad. It has gone through the worst of times in the past 3 years when prices spiraled down continuously after it reached its peak in 2013. It took much time for phase 8 to settle down after 2013 but now we can see some positive developments happening which indicate that now is the time to enter the market and earn some benefits.

New developments like theme park, construction of roots school, development of bahria orchard and pending blocks like M block, F block, P block etc have caused prices to stabilize recently as more buyers took interest in phase 8 and purchasing went on smoothly mostly by genuine buyers who want to construct their houses.

Another factor of ring road project will definitely affect prices in this area, however we can't say for sure if government starts physical construction of this ring road this year. This proposed ring road will connect rawat to motorway at thallian interchange, so it will be easy for people of Rawalpindi to reach new Islamabad International Airport in future.

Serene City

serene city

Serene City or Garden City Zone 5 to 9 was taken over by DHA in march 2016, after which prices began to improve day by day as many investors including those of DHA entered the market. Market stopped after transfers were put on hold due to audit and shifting of records from bahria to DHA. 

It has been more than 9 months now, and still transfers are not open. However, there are high chances that prices will increase by more than 50% as soon as transfes are open by DHA this year. 

Gulberg

gulberg-islamabad-logo

Gulberg Islamabad has performed much better in the past 2 years. Prices increased by almost 50% to 80% in the last one year alone, however market went into correction phase in the 3rd quarter of 2016 as IBECHS slowed down development work and introduced a large number of files in A executive, P extension, 5 marla unballoted, and files in A, B & C block which are nowhere on the current map.

Despite the correction phase, gulberg has all the potential to grow again this year as alternatives are very limited in this area, which makes gulberg the only choice for majority of buyers seeking plots near Koral Chowk. Since prices are settling down nowadays, you can enter the market and pick up good location plots for sure gain this year.

This blog post was created on Monday, January 16th, 2017 and Filed Under
  • zahir

    what are the best option in 2017 (affordable) on installment basis..

    • Zubair Ahmed Khan

      Same question here too…

  • Younus Shaikh

    Dear Yasir,
    Thank you for giving us this opportunity to gain knowledge by viewing your prospective of development and investment opportunities in Islamabad by zones.

    This is really an excellent assessment by Manahil Estate. For sure, investors who are abroad and anxiously waiting to invest for short and long-term investment, may get benefit from your expertise and make the investment decision wisely!

    Best regards,
    Younus Shaikh

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