Introduction
The skyline of Pakistan’s metropolitan cities is changing. In the past decade, a surge in high-rise projects, especially in Lahore, has been witnessed, and it is now catching up with the well-established vertical living culture of Karachi and Islamabad. These towering structures represent modernity and are a response to the growing urban population and limited land availability. High-rise buildings offer a multitude of residential and commercial opportunities, each with unique characteristics based on their construction phase: under construction and soft launched.
Evolving Skylines: Lahore, Karachi, & Islamabad’s Projects
In Karachi and Islamabad, high-rise buildings have been a part of the urban landscape for many years, with the cityscape dotted by numerous completed projects. High-rise development in Pakistan has been driven by the demand for efficient space usage and the desire for modern amenities, and these cities have been at the forefront of it.
Lahore, traditionally a city of sprawling gardens and low-rise structures, has seen a dramatic transformation in the last 2-3 years. It’s embracing vertical expansion with fervour, with projects like Bahria Sky leading the charge. This shift is not just in the quantity but also in the quality of living spaces offered. Developers in Lahore are now providing features comparable to international standards, enticing more people to choose the vertical lifestyle.
Benefits of Investing in Under-Construction Projects
Investors often draw to under-construction high-rises due to several compelling advantages:-
- Early Bird Pricing: Investors can secure properties at a lower rate, which is typically appreciated by the time the project is completed. An increase in rates by the developer is guaranteed as he has to cover his escalation, directly benefiting the end user who bought at the first initial rate with a minimum down payment. Other than that, capital gains are also obtained in high-rise investments, similar to those in land/plots.
- Customization and Selection: Being early in the sales cycle allows investors to select their preferred units and make specific requests regarding finishes and layouts. The opportunity to select the best location units and categories of their will is available to the earliest clients, which becomes difficult with time as the inventory keeps on getting sold.
- Strategic Investment: A gradually maturing investment offers better planning for finances and the chance to monitor progress over time.
Challenges of Investing in Soft-Launched Projects
Soft-launched projects are advertised before the completion of formalities and construction commencement, and they carry inherent risks.
- Regulatory and Approval Delays: The biggest challenge is the uncertainty regarding the project’s approvals, which can delay commencement or lead to alterations in the project plans.
- Investor Confidence: Without visible progress, these projects require investors to have faith in the developer’s promise and project viability. In most cases in Pakistan, a soft launch project means that the developer doesn’t even own the land on which he is launching the project. Most of the developers pay the land cost from the sales generated at soft launch, which is a very unprofessional approach, and in such cases, the project is more prone to failing or not completing on time.
Regional Comparison
Comparing high-rise projects across Lahore, Karachi, and Islamabad reveals a broader trend of increased high-rise developments due to urbanization. Karachi, with its rich history of multi-story buildings, offers lessons in the risks and rewards of early investment in such properties. Islamabad, known for its regulated development, provides a model for balanced growth. Lahore’s recent expansion into the high-rise segment indicates a promising future for investors, with projects aligning with global standards, thus inviting comparisons with its peers.
The Lahore Emergence
Lahore’s real estate market has been undergoing a significant transition. A preference for horizontal expansion has now been adapted to the vertical movement seen in its counterparts in the city. High-rises like Bahria Sky are redefining the city’s real estate dynamics, offering luxury living and commercial spaces that cater to the growing demand for upscale, amenity-rich environments.
In the last few years, Lahore’s policy amendments and incentives for builders have encouraged the growth of high-rise buildings. The increasing awareness among the populace of the benefits of community living, security, and having facilities and amenities within reach has also fueled this.
Conclusion
The high-rise landscape of Pakistan’s major cities is a testament to urban evolution and the changing preferences of its population. Investors eyeing high-rise developments must weigh the benefits of under-construction properties against the potential uncertainties of soft-launched projects. The burgeoning high-rise culture in Lahore, influenced by Karachi and Islamabad’s development, presents new opportunities. With informed decision-making, the investor stands to gain from the architectural ascent of these metropolises.
In conclusion, in the tried and tested markets of Karachi and Islamabad or the burgeoning market of Lahore, high-rise real estate investments promise growth when navigated with prudence and foresight.
