The under-construction Islamabad Expressway is destined to bring good luck to nearby societies in due time. Gulberg Residencia is among these societies. However, real estate investment volume has gradually dropped in the course of the last couple of...
The under-construction Islamabad Expressway is destined to bring good luck to nearby societies in due time. Gulberg Residencia is among these societies. However, real estate investment volume has gradually dropped in the course of the last couple of weeks.
In order to help you understand the factors that have led to a fall in investment volume in the society – despite its prime location – I have prepared this exclusive analysis. Read on!
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More than 50% of the project's land is stuck in litigation. While the developer is busy fixing the issue, the fact remains that they don't have complete possession of land in many blocks. Blocks I, J and E are the only blocks where the developer has acquired and developed 100% of the land – and possession has made been available. Naturally property rates in these blocks are also higher. In addition, many plot owners are also constructing their houses in the mentioned blocks.
In Blocks L and V, the developer has acquired and developed about 50% and 75% of the area, respectively. Over 20% of Blocks A and G has been cleared and developed. Major litigation issues prevail in Blocks H, K, M, O, and P, while 50% of the land is available for Block N. In Blocks B, F, Q, R, S and T, the developer has acquired 100% of the land but carried out no development so far.
Slow pace of development
Due to litigation issues, the pace of development work in the project is slow. The increased real estate activity witnessed during the last two months was due to the construction of the Gulberg Interchange, and the bridge that connects Gulberg Greens with Gulberg Residencia. An interesting thing to note here is that in terms of the pace of development work, the opposite is seen in Gulberg Greens – an exclusive farmhouse project targeting end users from the upper class.
What's coming up next?
I have learnt that the developer is looking to offer possession for plots in Blocks B, F and R in the coming three months. So property rates in these blocks can go up. Furthermore, the auction of commercial plots in Block D Markaz, which is the commercial sector of Gulberg Residencia, is also planned in June this year.
Where to invest?
If you have enough capital, you can wait for the auction of commercial plots in D Markaz. If playing big is not your cup of tea, you can opt for residential plots in Blocks B, F, R and P (but go for developed areas). My sources claim that 1-kanal residential plots in Block P could fetch better gains in the short to medium term.
