27/10/2021
Market Update - From the CEO's Desk
Following the announcement of Approval of funds for the Rawalpindi Ring Road project - there is quite a buzz in the market specially in new housing societies which are in the vicinity of a Ring Road interchange. The buzz is justified as this will give them better and quicker access to various points of the Twin Cities which is certain to make them a popular choice with Home Buyers and Investors alike.
This buzz has shifted short term focus of some investors towards the 'New and Developing Plots' market which can also be worded as the 'File Trading Market' and has slightly slowed down the (Off Plan) High and Mid Rise Tower market where there is now an opportunity to invest.
I'll list down some factors below and some things to consider for an investor before jumping into the Off Plan Tower Projects market:
Dollar is on the Rise - Any developer who has sold 50% or more of their project but not started construction might find it difficult to balance in flow of funds with construction work as cost of raw material will rise
Rise in Petrol Prices - Might limit spending power and increase daily expense of an end user who may find it difficult to pay regular instalments which can hinder a projects cash flow
Shift in the Banking System - As banks try to shift their mode of transactions between businesses to Online instead of Cheques and Cash, a large chunk of un-available funds (bounced cheques and holding cheques) will be eliminated from the market which may decrease speculation and make the property market more stable and less volatile but this will be a long-term factor
Thank you for your time. Your feedback is always welcome - looking forward to hearing from you.
Regards,