RUDA vs The Rest of Real Estate Pakistan: Comparative Analysis

As a resident of Lahore, I always feel fascinated with its revolutionary change and how it still conserves our history. But over the years, nothing has captured my attention quite like Ravi Urban Development Authority (RUDA).

On a recent visit to the RUDA site, I can sense that this is not just a development, it’s a turning point for both Lahore and Pakistan. RUDA is a government entity, and is here to create a twin Ravi City from scratch. The mission of RUDA, is to make a sustainable green environment for residents. Already taking shape with the launch of Chahar Bagh and Sapphire Bay.

Imagine living in a modern, majestic, eco-friendly sustainable area with forestation and water treatment plants that restores river aquatic life.
What’s even more promising is the role of the Special Investment Facilitation Council (SIFC) by bringing together government and private sectors. This will enhance the economic growth and create employment opportunities of more than 9 million people.
It’s a futuristic plan that we need in our country, it’s a model for many future projects.

Let’s find out how RUDA’s vision and plan is beneficial and more futuristic compared to the rest of Pakistanis real estate market.

Downward Trend of Pakistani Real Estate Industry:

The Pakistan real estate market has faced a downfall in recent years. As an observer of the real estate market, I find out how economic factors and shifting in buyer’s preference will affect real estate markets.
Let’s start with mini Pakistan, our Karachi.

Karachi Real Estate Fluctuations:

So, I have been observing the real estate market of Karachi, it’s a hub and who doesn’t want to invest there? I noticed that Karachi is going through a tough time. The prices have dropped about 15% which is quite a steep decline compared to other Asian cities.

High prices and high inflation makes it hard for people to buy properties. Moreover, the House Building Finance Corporation (HBFC), reduced the amount of money they were lending for housing loans. A significant decline from Rs15.6 billion in 2022 to Rs13.5 billion in 2023.

Many upscale areas like DHA, Clifton are facing a dramatic hit of 12% because of this downfall.

We need some better infrastructure, economic reforms and a unique development program to enhance buyer and investors’ confidence.

Lahore Real Estate Insights:

Lahore also faces a major decline in its real estate. The property value declined to about 50%.
I also observe that at the start of September month 2024, the files rates also declines sharply. There is a deep reduction of 5 Marla residential plots prices and closed about 31 lakhs.

These fluctuations are because of various factors like investor sentiment or government policies.

Islamabad Real Estate Dynamics:

Islamabad, the capital city of Pakistan, is also facing a downward trend in real estate business in 2024. First if I start from small properties which cover 3- 7 Marla, face a decrease in growth rate of 8%.

The property between 10-15 Marla declined to 1% growth in 2024 which had 26% growth in 2023. While large properties of 1-2 Kanals have a moderate growth of 5%.

Overview of Pakistan Real Estate Decline:

Research from Report of HBFC

RUDA vs other Real Estates:

DHA Lahore vs. RUDA Chahar Bagh

Delays in Project Delivery:

• DHA Lahore:
  The newer phases, especially 8 & 9 have significant delays. It makes investors frustrated due to delay in plot delivery.

• RUDA:
  First of all, RUDA doesn’t sell files, they give plot numbers to residents this makes them more trustworthy. They are committed to deliver plots even before the completion of payment plan. Chahar Bagh owners are getting possession of their plots in two-year timeframe.

Legal Disputes & Fraud Allegations:

• DHA Lahore:
  Projects like DHA City Lahore face legal disputes and its still not sure where its actual land.

• RUDA:
  While RUDA is a government entity and there are no illegal acts or fraud cases listed.

Fluctuating Prices and Stagnant Market:

• DHA Lahore:
  There is high price fluctuation making phase 5 extremely expensive. Also they are facing difficulties in transferring ownerships this led to slow down in market activity with no economic growth.

• RUDA:
  On the other hand, RUDA shows stability in prices and growth. Investors get about 25% profit in a single year.

Maintenance and Infrastructure Issues:

• DHA Lahore:
  With a vision of long lasting infrastructure, still DHA old phases (1-4) faces maintenance issues. And many of my relatives living there are facing problems of narrow roads and electricity outages.
• RUDA:
  Well when I visit the site it shows perfectly how well planned their infrastructure is with wide roads and green zones.

Development in Newer Phases:

• DHA Lahore:
  DHA Lahore newer phases (6 and 7) we see there still lack in their planning and amenities. There is a need for well planned development.
• RUDA:
  I see a well-structured , modern design to integrate modern lifestyle with traditional ones.

Bahria Town vs. RUDA Chahar Bagh

Delays in Project Delivery:

• Bahria Town Lahore:
  Bahria town has faced significant project delivery delays and still investors did not receive their plots. The delayed areas like Sector F affected by these circumstances.
• RUDA:
  RUDA provides a plot number to their investors instead of selling files which is a traditional way of making just money in real estate. There is transparency which enhances investor trusts.

Legal Disputes & Fraud Allegations:

• Bahria Town Lahore:
  There are many fraud allegations like forced land acquisition and selling fake files. So as usual NAB froze some Malik Riaz assets in Bahria.
• RUDA:
  RUDA is a reliable choice it’s the only real estate with no illegal acts. Its a solid project withstanding laws.

Fluctuating Prices and Stagnant Market

• Bahria Town Lahore:
  Many investors feel their investments are at risk especially in Sector F. The delay in providing timely ownership will make the market less economic.
• RUDA:
  On the other hand, RUDA shows stability in prices and growth. Investors plan to work with RUDA for long terms.

Green Initiatives:

• Bahria Town Lahore:
  Bahria Town Lahore has many green projects but it faces many criticisms of its environmental practices, like land acquisition and legal disputes.
• RUDA:
  RUDA CEO Sir Imran Amin, said that a sustainable green environment is the backbone of RUDA. They will conserve 2.7 billion liters of water by building 3 barrages on the side of river Ravi.

Lahore Smart City vs. Chahar Bagh

Delays in Project Delivery:

• Lahore Smart City:
  Mr. Habib Rafiq the owner of Lahore Smart City is committed to complete projects in the timeframe of 2-2.5 years. However, there are many delays reported for specific areas.
• RUDA:
  RUDA provides a plot number to their investors to make it more unique and trustworthy. Moreover, its location is very favourable for investors.

Legal Disputes & Fraud Allegations:

• Lahore Smart City:
  In August, many people face problems in acknowledgement slips that confuse many people. Considering the past of Habib Rafique and LSC it must be a technical issue which they will sort out soon.
• RUDA Chahar Bagh:
  RUDA is a reliable choice it’s the only real estate with no illegal acts. Its a solid project withstanding laws.

Maintenance and Infrastructure Issues:

• Lahore Smart City:
  Lahore Smart City is still in process of establishing the well planned infrastructure. Many residents have bad experiences as construction progresses.
• RUDA:
  RUDA plans to give Pakistan a modern infrastructure with well-planned layouts and high quality lifestyle.

Accessibility Issues:

• Lahore Smart City:
  Lahore smart city has easy access to the Lahore bypass, GT road and M2 motorway but the issue is of traffic congestion. Moreover, for international clients the airport is about 30-40 mins drive. (Too Far from Lahore).
• RUDA:
  Real estate is about location so as with RUDA. Chahar Bagh is favourable for investors for its location. It is almost a 5 min drive from the ring road. 15 minutes drive from Lahore-Sialkot motorway. And just a 10-minute drive from the airport.

Conclusion:

While considering all the comparison aspects I decide to invest in the futuristic urbanization development plan of RUDA. First of all, it’s a well-planned project starting from scratch with a new vision and mission.

A futuristic plan and modern approach to spread the residential vertically instead of horizontally. Building condominiums, high rise buildings will make it like a modern twin city.

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References:

https://www.brecorder.com

https://ruda.gov.pk/ceo_message’
https://ruda.gov.pk
https://www.zameen.com

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