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Why some cities are expensive than other to buy homes?

Why some cities are expensive than other to buy homes?

World has witnessed the meteoric property rise in the last decade. But some cities in the world are expensive to buy a home, while others are cheaper. The factors that increase or decrease the value of a city’s property are good job creation, high population density, high security and better medical & educational facilities.

Good employment facilities

Cities with the world class business districts that provide the aspiring jobs are the desire-able cities to live in. Homes & properties are expensive in these cities, as people are always willing to relocate for good career opportunities. This is why Hong Kong, Beijing, London, Paris and New York are the expensive cities to buy a home.

High population density

Cities with the high population density are always expensive. Cities have the limited space and high population density increases the demand for properties. When many people are chasing the same house or property, price is always high. Due to high population density, Monaco is the most expensive city of the world to buy a home.

High security

People are always willing to pay more for the areas or cities that have good security. Property is always expensive in the regions that have peace & security. Whereas the regions or cities that have low level of security are cheaper to buy property. London, Paris, Beijing, Moscow and New York have good security and property is very expensive in these cities.

Good educational, medical & recreational facilities

People always love to live in the regions or cities that have good educational, medical & recreational facilities. Properties are always expensive in the cities that have world class educational institutions, medical centers and recreational amenities. London, Paris and New York have the world’s best educational institutions, medical centers and recreational facilities. This is one of the reasons that properties are very expensive in these cities.

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(35) Comments

  1. Rajab

    on   said 

    @ Ghar47,

    I will appreciate if you can cover the Lahore Ring Road SL2 and SL3 their development, impacts and future aspects and what are the beneficiary areas of SL2/3.

    Thanks

    Reply
    • Rajab

      LAHORE RING ROAD SOUTHERN LOOP – LRR / SL

      SL1 – Kamahan to Ferozepur Road
      SL2 – Ferozepur Road to Ada Plot
      SL3- Ada Plot to Multan Road

      WORK PROGRESS

      SL1 & SL2 are approximately 35% complete and will be open for public on 14th of August 2017
      SL3 – is in planning phase and work will start within months.

      Hopefully southern loop of LAHORE RING ROAD will be complete by 2018.

      IMPACT OF SOUTHERN LOOP OF LAHORE RING ROAD ON PROPERTY SECTOR

      If we see history of northern loop of LAHORE RING ROAD we can see tremendous price rise. Areas on both sides of northern loop have benefited it. For example if we see prices of askari 10 inside ring road and paragon city outside ring road 2010 to 2017, we can see prices have increased by many times. but this takes time as no overnight price rise.

      In case of southern loop following societies are hot spots
      LDA CITY LAHORE
      HALLOKI GARDEN DHA 11 LAHORE
      LAKE CITY LAHORE
      KHAYABAN E AMIN LAHORE
      DHA RAHBAR
      DREAM GARDENS
      BAHRIA TOWN LAHORE
      PARK VIEW VILLAS MULTAN ROAD

      we can see price rise due to ring road construction in lda city, halloki garden, bahria orchard and dream garden.
      bahria town Lahore is facing problems of land issue.

      WHERE TO INVEST?

      1- SOCIETIES WHICH ARE INSIDE LAHORE RING ROAD as land limitation is increasing prices more fast than out side ring road
      2- societies where prices are low as chances of profits are greater
      3- societies that have actual land in hand
      4- societies which have approval from lda
      5- societies which have small plot size cutting

      SIMPLE CALCULATION

      JUST imagine if there is no black money in property sector or if black money is chased by courts who can buy or pay even 25,000 per month.

      A SIMPLE HINT FOR FUTURE

      Advantage of small properties is that price fluctuation has minimum effect

      This is why I like halloki garden as only small cutting of 5 & 8 Marla

      ONLY THOSE PEOPLE WILL GET HIGH RETURNS WHO WILL INVEST FOR 2-3 YEARS LIKE 2020. I SEE PRICE FLUCTUATION IN SHORT TERM DUE TO MANY REASONS I WILL DISCUSS IN BLOGS SHORTLY

      Reply
  2. Adeel

    on   said 

    dear ghar47. i dont want investment. i want plot for home construction aftr 1 or 2 years. under k which are other options? ??

    Reply
  3. Adeel

    on   said 

    Aoa. Ghar 47. U r doing a wonderfulwork. I want to buy plot to make home in 2 years time. My budget is under 20k. Plz guide for b17. University town. No faisal town. Any other. With respect to development work living etc. Plz guide

    Reply
    • Adeel
      There are many options in Islamabad but according to your choice B-17 is best as it is near to Motorway and Future CPEC.
      It will give you good returns in future as prices are low at the moment.
      Make sure that its a long term investment as you will get good returns if you invest till 2020.

      Reply
  4. malika babar

    on   said 

    Can anyone tell us about property market situation. Dealers say that market is not good due to high taxes and terrorism

    Reply
    • Malika Babar
      Property market is dead or stagnant due to terrorism, high taxes, terrorism and political turmoil.
      Dealers are also telling that property transactions are record low.

      According to dealers, property amnesty scheme has failed to attract investors.
      Dealers have no hope of tax revision in budget 2017-18.

      If crackdown happens on illegal money, plea bargain an money laundering, it will massively crash the property prices.

      Reply
  5. waheed

    on   said 

    I know many people from Khyber who came to Islamabad for studies and never went back. Many people move to cities due to better education

    Reply
    • Waheed
      People shift to cities as in Pakistan only cities have universities hospitals
      If we have same facilities in towns and villages no one will move to conjugated cities

      Reply
  6. dastgeer

    on   said 

    Due to security concerns people from Karachi shifted to Lahore and Islamabad. Now law and order is good in Karachi and people are moving back to Karachi. Now Karachi is safe for living.

    Reply
    • Dastageer
      True now security situation is better in Karachi and city is once again flourishing
      Back in 2012-2013 people from Karachi shifted to Lahore due to better security situation

      Reply
    • Mahnoor
      Its true and even we have committed suicide
      Area within Lahore Ring Road is limited. This will create even more problems in the future
      We will need another or second ring road Around first Lahore Ring Road

      Reply
        • M Anwar
          Ring Road in Rawalpindi will connect G.T. Road to New ISLAMABAD International Airport
          So housing societies or areas which will be near to this route will benefit
          Housing schemes near to new Islamabad airport will definitely benefit RAWALPINDI Ring Road

          Reply
          • M Anwar

            on   said 

            when will this ring road will start, what is its starting point, which society will be more beneficial, bahria town phase 8 will be beneficial or not

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