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KARACHI: Stakeholders in the real estate sector offered different views over the impact of Supreme Court’s decision on sale and purchase of property in Bahria Town Karachi.
While some sources said that real estate prices in Bahria dropped by 10-20 per cent coupled with suspension in fresh deals between buyers and sellers, others believe that only old deals, on which buyers and sellers had committed prior to SC’s judgment, are still being finalised.
“There is anxiety among buyers, especially those who are yet to receive possession,” said Abdul Wahab Parekh. The owner of Parekh Estate at Clifton further claimed that majority of investors in Bahria Town belong to ‘upper-middle income group’ instead of big investors.
Plot and house prices have plunged by 15-20pc since Friday while fresh property transactions have almost come to a standstill, he added.
CEO Citi Associates and Senior Vice Chairman FPCCI’s Standing Committee on Real Estate Planning and Research, Muhammad Shafi Jakwani also shared similar sentiments.
“There is no seller or buyer of Bahria in the market right now as transactions are stagnant. However, the transfers were in process on Friday and Saturday and even it continued to Monday on those deals which had been signed 15-20 days back,” he said.
“Prices of plots and houses in Bahria have decreased by 10pc in the last three days,” he said while anticipating improvement in the long run.
He said the impact of Bahria on other real estate trading in the city has yet to materialise since the overall property market has been facing a slowdown after the announcement of budget 2018-19 coupled with growing environment of election. “Property market may continue its lacklustre run during Ramazan,” he added.
Owner of Nazimabad Estate at North Nazimabad, Zubair Rasheed also agreed that currently there were no buyers or sellers for any properties in Bahria Town after SC’s ruling and prices fell by 20pc in the last few days.
He claimed that most of the “investors in Bahria Town are big shots and not lower or middle class people.”
“The apex court should have checked Bahria’s activities and plans ahead of its launch,” he said.
Chairman Association of Builders and Developers (ABAD), Arif Yousuf Jeewa said, “Bahria Town is now undergoing a sort of audit and scrutiny whose prime beneficiary will be the buyers and sellers of this project in future.”
“People involved in Bahria Town sale and purchases are very worried. Some fear their capital will go down the drain in case any decision arrives resulting in closure of the project permanently,” he opined.
Currently buying and selling in the big project has stopped following reports of 20pc drop in land and house rates, he said.
Mr Jeewa was of the view that the costly project may be regularised after intervention of the Supreme Court and consumers would benefit in the long run.
Another estate agent in Clifton area said that “nobody is now willing to take risk in any sale and purchase in Bahria Town and only those deals are being matured on which both the parties had agreed under an agreement prior to SC’s decision.”
Some brokers, who asked not to be named, said buyers of Bahria property are unlikely to suffer as the apex court and NAB would deal with the owner of Bahria instead of touching the allotees.
“We do not think that public will suffer in the ongoing inquiry against the operators of Bahria Town,” they said.
‘All is well!’
Meanwhile, brokers dealing in Bahria Town have been sending WhatsApp messages to clients and potential customers, assuring them that everything is okay.
The following is the text of one such message that is being circulated:
“Bahria Town Karachi has conducted immense work and development on the land acquired from MDA, and has further allotted the same to public, hence there is without any doubt third party interest. Supreme Court has ONLY restricted Bahria to issue further commercial and residential plots and such an activity will be illegal.
However all presently allotted plots and villas may be traded and exchange of hands is permissible by the court. Supreme Court has widely appreciated the development work which has been conducted by Bahria Town and considering the fact that the issued plots and files are owned by third party hence there interest will be safe guarded. Bahria Town and the Board of Revenue will resolve the exchange of land and settle the price as per the market value.
The settlement will be reached within 3 months. Investors be advised that Bahria will operate in same manner as it has in the past and will deliver all existing/sold land and files. Development work will continue.
The judges also added that transactions between the Sindh government and Bahria Town could be made legal, but the stipulations on these transactions will be established by the SC’s special bench.”
Published in Dawn, May 8th, 2018
Comments (48) Closed
I want to buy a flat. Is it a good time to do so? Or mot good? Plz advise me!
The people involved in this should be put behind bars for next 50 years, so no dares to do this again.
This man and his friends should have been stopped many many years ago, which didn't happened. Land mafia, land grabbing and like was the creation of people like him and his friends specially in Islamabad and Karachi. They have not wasted any opportunity to make billions and deprive innocent from their passions through grabbing land from poor people by involving police and like minded people.
Good
Dead End for Investors and overseas Pakistanies, who have invested all the saving to be coming back and living in ther houses or build house on lands
Bahria town Land has litigation. There should be no price for Bahria town because ownership of the plot cannot be recorded from the beginning even before SC judgement.
It’s pity thatBahria ha never been a clean name in the market, despite the fact that they have built some of the best housing societies, but their greed has no limit. The present and future client has lost their confidence in Bahria.
Good bold story. Good work Dawan!
Bahria town Karachi is doomed .One is always sceptical about investing in this scheme
Both DHA and BAHRIA are corrupt and using power to influence their land acquisition. It is high time to hold both accountable although it is a impossible job. But we need miracle to happens.
Hopefully third party/ allotees interest would not get hurt in all these legal battle.
DHA phase 8 Karachi is more than 30 years even development fund was taken some year back,but still procession of plot not give
Next Stop DHA?
Its good, justice should prevail but at the same time justice delayed is justice denied. SC decision has come quite late now a lot of people have invested their hard earned money in this project. Thousands of people within the country and outside Pakistan have bought plots and paid hefty money to Bahria Town. Is SC ensured their interest in its decision ? People have bought plots in a housing scheme which had NOC from government and all required documents were in line. So why they should suffer ? Who will guard a common man's interest who has bought plot in the Bahria Town. SC or any responsible government responsible should come forward and clarify this matter to innocent buyers of Bahria Town's plot. All this matter should be clarify as soon as possible otherwise nobody will invest any money in Pakistan not even Pakistnise. Present Bahria Town state of affairs has a message that Investment is not safe in Pakistan.
The alliance of PPP, Bahria Town and PSP(Haqiqi2) are after the resources of Urban Sindh. In addition the alliance of the three with more powerful sources has given them a free hand to do whatever they want in Urban Sindh. We request that Honourable Supreme Court ask Bahria Town to return the money to the innocent people who got trapped in this illegal project.
No talk shows on the issue in the mainstream media? Is there any point watching / listening to other talk shows? Public can no longer be made fools by the socalled neutral anchors.
I have my own investment in Bahria Town but I still support the court decision. The court should also get the record of investors and ask them to provide the proof of earned money. All those who have not paid tax , their property should be put in auctions. You cannot fix the system by just picking one in millions. You must go after everyone who is doing wrong.
This is not a slump, merely a correction in value of a over rated, un-collateralised asset which was devoid of due diligence. Real estate is not economy. Infact it hordes and clogs money and leads to stagnation of capital. Result is joblessness.
These schemes should be regulated including watch over rural to urban migrations,
Kuddos dawn for ever exposing these mafias.
After 4 years concerned department realize that there was some thing fishy transaction between Bahria Town Karachi and MDA. What is fault of common man here.
We all know that high up army, air force officials are appointed in all housing societies be it bahria or any other. I personally met a few bigariders, captains in their ranks. Although i am against politicians doing corruption but we must also acknowledge that our forces too have many elements who are totally corrupt who feel they are above any law.
I also salute Dawn for the very first newspaper to write about the Bahria corrupt practices and SC decision against them. As a law abiding citizen i feel that Pakistan has become the hub for corrupt practices and only those people prosper who are corrupt and have high contacts. This is because there is no law for those powerful mafia and people. Supreme court has taken a right step to check these corrupt and powerful people.
If you buy a camera and it turns out to be stolen, you have to give it back. Plain and simple.
Same logic applies to real estate.
such practices are being carried out for decades... I have sold and purchased so many houses and land in the USA but never winded up with such situation...the problem is systematic corruption... everyone is involved from the top to the bottom... the irony is they get by with this... what a joke first illegalized it and then legalized it....
Give punishment to all involved. Govt officials, Politicians, developers involved. Sc can't just go away by setting stipulates on top of plot prices. Some one should be punished at land grab on national level.
my lawyer friend who deals in real estate has advised me to stay clear of all properties associated with Malik Riaz. His view is that once MR is out of picture, there is no one strong enough to handle potential fall out, not even his son(s).
I bought two plots yesterday and someone who I know, bought two ready plot for 2 Cr because prices are down. The decision comes good for new buyers. My advise is to invest in the project now, if interested. The size of Bahria town is a size of few internationally known cities and yes, it is developing fast.
There is no city or town, comparable to the development of Bahria Town Karachi. I am from Islamabad and do not like Karachi but love BT Karachi.
Will we ever find a verdict where those involved in mal-practices and corruption, both the businessmen and the regulatory bodies and politicians are put behind bars for at least a few years? Without punishment on intentional corrupt practices, the game will continue and justice will not be considered to have been delivered to make it an example.
Try not to buy any plot or flat for instalments. I bought a flat in BT Rawalpindi and still waiting for the last five years. Paid all the money in the first two years. If you can pay lump sum and the flat/plot is ready to handover that's fine otherwise stay away from it. I guess BT corporate strategy is to hold people's money for years and invest in further business to make money. Very good step from Supreme Court this time as Malik Riaz thinks that he can buy anyone in Pakistan. No one should be above the law.
@Imran wonderful comments
SC shall ensure to protect the interest of people who bought plot in Bahria town. They are not involved in any wrong doing and they shall not be victim of someone else mistakes.
A great, historic, unprecedented and well-deserved shock, anxiety and blow struck to the biggest mafia group and it's crooked and cunning cronies by none other than the wonderful and powerful Supreme Court of the Islamic Republic of Pakistan. Keep it up and hang on tough.
Nothing against DHA City?
Easy come, easy go. These are the immutable laws of nature...
Projects built on land acquired illegally or through hood and wink is bound to cause many sleepless nights for the inhabitants of homes built on the very land. With the possibility of immient domain of the state, it could also be confiscated by the government without compensation to the owners or the builder.
Easy come, easy go. These are the immutable laws of nature...
Projects built on land acquired illegally or through hood and wink is bound to cause many sleepless nights for the inhabitants of homes built on the very land. With the possibility of immient domain of the state, it could also be confiscated by the government without compensation to the owners or the builder.
Qabza groups life is not long, fraud eventually automatically vanishes society overtaken by another qabza group if it is pakistan.
While this is a good step, the court should foreclose all houses and properties in Bahria town that were built on land grab and land should be restored for agricultural and nature reservation. Additionally, buying and selling of any properties should be banned. People who bought properties should be ashamed of themsleves knowing that Bahria had several cases in the court amd without their duedilligence they took the rights of the original owners of the land. This is where moral and ethics come in to play amd i can see several people in comments asking jf they should buy this land for cheap. No wonder this country is going downhill. We need zonning laws where land near rivers, flood plains, and forests should not be allowed to purchase for construction purposes but i guess this will never happen. Certain quota must be attained where commercial and residential area cannot exceed over agricultural land. After all, agriculture is our staple industry or at least used to be.
Heart breaking news for most Karachiities people who have invested in BT. SC must understand ground realities and think for thousands who have invested fairly and paid all installments for their plots. In average they have paid three to four Million Rupees in past 2-3 years. It was a long time, why no court alert these investors in time? I am sure thousands of Karachiities will be on road due to this order. Those who are clapping on this forum are jealous to their own brothers and sisters. These few millions are saving of govt servant after 30-40 years of service, most of people living abroad are misunderstood by 3-4 million rupee. I request SC to review his decision and understand suffering of millions of Karachiities. Instead worrying about lands and land owners who have received plenty from Bahria town owners. This land was desert since 1000 years.
@Tariq , So who are fair, KDA, KMC, And what about private builders in Karachi or any where in Pakistan? Go and see the rules and regulation of DHA scheme, and now BT. There are comprehensive building schedule, rule, system of allotment, roads network, sanitation, cleaning program even after 30-40 years. I hope most comments are not aware of DHA, BT or any Big housing project builders in Karachi.
Its not the Baheria Town alone, thorough investigation can reveal a large numbers of such land scandles with convenience of sind govt functionaries in Karachi
@a every word true!
@Nawaz Khokar Acquiring stolen goods is also a crime.
Good for some, bad for some. That is the way it always goes. Of course, the master minds go scott-free.
Bahria is a great project. I dont understand why no one made any use of so much unused land between karachi and hyderabad. Instead everyone focused on overloading karachi with apartment buildings.
@anees zed I would advise you to buy the open land or property in the suburb of the city you are living. The costs are cheaper than the city and closer to the city and you know the city keeps expanding too. In a long run, buy a flat or property is better than renting.
One possible benefit can be that bahria will have to give ownership rights to buyers. Supreme court clearly stated that bahria is getting the land swap deal based on third party interest. Bahria will have to sublease the properties to their rightful owners once they have been fully paid. I think it is only fair and media should also highlight this issue.
An Overseas Bahria Investor
From read of Pakistan Newspaper, Bahria Town Project is flawed and conception of flawed people. It should have been scrutinised from the beginning by the Planning department of the State for Fishy Scheme.
So, finally SC and Pakistan Govt has shown RED flag to all expatriates to not to invest in Pakistan anywhere anytime in future.Creating very bad example of law enforcement in case of unlawful land "grabbing". However in cases of DHA and here in Bahria town most of the payments are done to their so called owners who claim that these lands were given to them by Mughal King Akbar, Jahangir, Shah Jahan, believe it or not. SC must take action against those who are holding thousands of acre in Liyari river, all major roads of Karachi, every corner of Karachi main intersections. Thank you SC.