The incredible hype, which dominated the real estate market during 2002-05 had its roots in the insecurity felt by Pakistanis abroad in the wake of 9/11 events. "Pakistanis living in a post-9/11 Islamophobic West started sending large amounts of money back home which found its way into the property market," said Imtiaz Rafi Butt, a well-known name in real estate business and the chairman of Rafi Group.
In 2001, the property market was still in a state of decline with undervalued prices and no real demand but the sudden rise in demand by overseas Pakistanis was the catalyst for what became an artificial boom and everyone, including many who had no idea of the dynamics of real estate, jumped into the market, prices sky-rocketed and inevitably the bubble burst, the market collapsed unto itself, leaving many people in the lurch, he observed.
He said there are many new projects coming out right now which were envisaged during the days of the 'hype', but unfortunately many of them will fail suffering from unrealistic expectations and prices.
About his Group's strategy, he said: "We didn't announce any new project during the 'hype' years due to the artificial nature of the market at that time. Today, in a saturated market, I don't think it is viable to launch a new project rather it could turn into a liability. I don't believe that a bad market means bad business; it is rather an opportunity to innovate and work harder to provide a better deal for you and your clients." However, as a company his Group has invested heavily in value-added property.
"We have put in a lot of time, money, and effort into creating activity in Defence Shopping Mall, our booming retail business new Tes-mart has created unprecedented activity in a new project." Rafi Group has also designed an innovative and secured investment option especially for today's real estate market", he said.
"We call it the guaranteed rent back plan, it is a unique win-win situation for both us and our clients, based on market rent returns, it corresponds with the Islamic economic system and offers incredible returns on your investment", he added.
This plan, he said, is ideally suited for people who have capital set aside and want a regular, safe and interest free income without the hassle of operating there own business. As far as new projects go, his Group is soon to fully launch 'Green Palms' in Gwadar, with all the modern amenities one could ask for, he added.