Bahria Town deadlock: Impact on investors, residents

ISLAMABAD: The ongoing conflict between real estate tycoon Malik Riaz and the Government of Pakistan has plunged Bahria Town, the country’s largest private housing scheme, into a serious crisis.

Several Bahria Town projects across Pakistan are now surrounded by uncertainty, causing alarm among millions of residents and investors, both local and overseas.

In recent weeks, Pakistan’s property market has witnessed an unusual and steep decline. Plots and files that were trading for millions just weeks ago are now rapidly losing value.

The situation has become so dire that the market is flooded with sellers, while buyers have nearly disappeared.

PROPERTY DEALERS DEEPLY “CONCERNED”

Hum English spoke with real estate dealers working on Bahria Town projects in various cities. They described the current state of the market as “deeply concerning.”

Shahid Abbasi, a senior property dealer, said, “The pressure on Bahria Town’s market in the past few days is unlike anything we’ve seen before. Plots, shops, apartments, everything is up for sale, but there are no buyers.”

Another dealer, Raja Imran, added, “A plot that was worth Rs10 million just a few weeks ago is now down to Rs7–8 million. If this trend continues, we could see a further drop of Rs 2–3 million. Especially in underdeveloped projects, the market has completely frozen.”

Residents not target, only financial criminals in Bahria Town: Tarar

Dealers warn that if the deadlock between Malik Riaz and the government is not resolved soon, it could trigger a ripple effect across the country’s entire real estate sector. Bahria Town is widely considered the backbone of Pakistan’s property market.

Currently, Bahria Town projects fall into three categories:

1. Developed Plots: Fully developed with electricity, water, gas, road networks, and construction approvals.
2. Semi-Developed Plots: Partially developed with incomplete infrastructure and limited facilities.
3. Under Development Plots/Files: No development work started, with land demarcation or mapping still incomplete.

The steepest decline in prices is being observed in the semi-developed and underdeveloped categories.

Files in these segments are rapidly losing value, and experts fear some may soon sell at a loss, meaning a file purchased for Rs10 million might fetch only Rs7 million or less.

Dealers noted that new files are being listed for sale almost hourly, but with little to no buyer interest, prices are falling fast. Those who purchased open files or plots on instalments are currently the hardest hit.

While developed projects have been less affected so far, the impact is beginning to show there as well. Even high-value plots of Rs10 million are now expected to lose Rs2–3 million in value.

BAHRIA TOWN PROJECTS UNDER CONSTRUCTION

Major Bahria Town projects include:

• Bahria Town Karachi (Phases 1–3)
• Bahria Town Lahore (Sectors A–F, Overseas Block, Safari Garden, Elite Town)
• Bahria Enclave Islamabad
• Bahria Town Rawalpindi (Phases 1–8)
• Bahria Golf City Murree
• Bahria Icon Tower Karachi (under construction high-rise)
• Rafi Cricket Stadium, Bahria Adventure Land, Grand Jamia Mosque, Bahria hospitals and educational institutes
• Proposed projects in Nawabshah, Peshawar, Hyderabad, Lahore, and Quetta

Many of these projects are still under construction or exist only as market-traded files. Investors involved in these schemes are now deeply anxious, as neither the government nor Bahria Town management has issued a clear policy or official statement in this regard.

COURT REJECTS BAHRIA TOWN STAY PLEAS

The Islamabad High Court on Thursday has issued a short written order rejecting Bahria Town’s pleas against the auction of its properties.

In its decision, the court permitted the National Accountability Bureau (NAB) to proceed with the auction. “All petitions filed by Bahria Town are dismissed,” the court stated.

The order also withdrew previous stay orders issued on April 15 and June 4.

The one-page short verdict was issued by a division bench headed by Chief Justice Sarfraz Dogar.