MULTAN, Feb 10: The demand for housing units and office buildings has surged in Multan following a population explosion that has created opportunities for realtors. It, however, has pushed up real estate prices beyond the affordability of the majority.

Migration from villages and smaller cities to Multan on mass-scale and involvement of elite class including industrialists and army personnel in real estate business have caused abnormal increase in property prices that has made it nearly impossible for people belonging to middle and poor class to own a house.

Fakhar Abbas, a property dealer, told Dawn there were rumours that Multan was being made capital of the country as construction experts had declared Islamabad dangers after October 8, 2005 earthquake, which has resulted in escalation of property prices.

Another factor that had caused boom in real estate business was the rumour that the government was considering to declare a new province Saraikistan with Multan its capital, Mr Abbas added.

He further said that a large number of investors who found Islamabad, Lahore, Faisalabad and Bahwalpur very costly for venturing in property business had chosen Multan, consequently the real estate activities in the city had witnessed rapid increase.

He pointed out that the prime reason for investing in property business was that it offered a handsome return as compared to meagre bank returns, and that was why the real estate sector had been attracting huge investment.

Industry people contacted by Dawn were of the unanimous view that the market had now been facing a slump for the last six months and prices had started coming down.

Another property dealer said that the per marla rate fell to Rs140,000 from Rs160,000 six months back.

He said that about Rs14 billion had been stuck up in Fatima Jinnah Town after the development work had been stopped there. The plots in the town were now available at Rs35,000 per marla as compared to Rs60,000 about six months back. While the official per marla price in the town was only Rs5,000 last year, he pointed out.

The last four years were golden years for real estate sector but now the business was losing its charm. Property dealers were hopeful that the slump would end very soon after demand for housing would pick up again.

Muhammad Akram Mughal, a retired school teacher, told Dawn that he had plans that he would buy a house after retirement but he cannot even able to afford a small plot due to sky-high prices.