Real Estate Market Crash in Islamabad – 4 Main Reasons

The real estate market in Islamabad was growing fast. Many people invested with big dreams. They wanted high returns on money. But things did not go well. The market crashed in recent years. Prices went down. Trust was lost. Many people faced big losses. In this blog, we will explain why the real estate market crashed. We will also talk about chances of recovery in the future.

1. Fake Housing Projects and Lies

Many fake developers entered the real estate market in Islamabad. They made big promises to people. Scammers said you would earn double. They offered interest-based investment plans. People trusted them and gave money. These developers sold fake plot files. They promised big housing schemes. But there was no land. No work started at all. Many families lost their hard-earned money. This created fear in the market. People stopped trusting new projects. This is a big reason why the real estate market fell down.

2. Authorities Did Not Take Action

The Capital Development Authority (CDA) and Rawalpindi Development Authority (RDA) are the main offices to check housing projects. But they failed to do their job. They did not stop fake developers. Even when people submitted legal papers, no action was taken. Some NOC files were delayed for years. Fraudulent societies kept growing in this gap. Many legal projects also suffered delays. This made investors more worried. The system looked weak and slow. If CDA and RDA had worked on time, the real estate market might have stayed stable. Their silence made the crash worse.

3. Overseas Pakistanis Stopped Investing

Overseas Pakistanis were a big part of the real estate market. They used to send a lot of money. Many bought plots and homes in Islamabad. They believed it was a good investment. But political changes broke their trust. When their favorite leader lost power, they became upset. They said they felt ignored. Many stopped sending money to Pakistan. Some even said they would burn their passports. This emotional reaction caused a big drop in investment. Less money came into the market. Demand became low. The real estate market became slow. Now, some overseas investors are returning. But full trust will take time.

4. Black Money Was Stopped

For many years, black money was used in the real estate market. People paid in cash. No one asked where the money came from. There were no records and no taxes. Property files were sold without any checks. This made the market move fast. But later, the government changed the rules. They banned cash payments. Now, only bank payments are allowed. Every deal must go through proper records. This stopped the flow of black money. Many investors moved money to Dubai. There, no one asks about sources. This hurt the market in Pakistan. Now, only real and clean buyers remain. This is better for the future.

Will the Market Rise Again?

Yes, there is hope for recovery. Interest rates in Pakistan have dropped. In 2023, the rate was 22%. Now in 2024, it is 13%. This may go even lower in 2025. Low interest means less profit in banks. So, people may return to real estate. The real estate market may become active again in next 2-3 years. It will reduce the housing shortage. Some areas still show price growth. For example, 7-marla plots are now 1.80 crore. Two years ago, the price was 1.30 crore. This shows demand is still alive. If trust returns, the market will rise again.

Conclusion

The real estate market crash in Islamabad happened because of fake projects, weak actions by CDA and RDA, loss of overseas trust, and a ban on black money. These four reasons changed everything. Now, things are slowly getting better. Interest rates are falling. Government plans are starting. Buyers are returning. Trust is still low, but hope is strong. A new boom can come if things stay clean and legal. If you want to invest in safe property, now is the time. Always choose trusted names and verified projects.

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• ZN Tower Faisal Hills Click Here
• Faisal Town Phase 2 Click Here
• The Sultan Hotel Galiyat Click Here
• The Sultan Hotel Bahria Town Click Here

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