Why not to invest in Capital Smart City!
Capital Smart City has been talk of the town since launched back in July 2017. In no time, this huge project by Habib-Rafique Pvt. Limited has become popular among investors in the real estate market of Islamabad. Their 5-marla, 10-marla and 4 and 8-marla commercial plots were an instant hit and some of them were even sold out before they even started their marketing campaigns.
Recently, Capital Smart City had launched Harmony Park Block with smaller sized plots and villas which were an instant success. The 3.5 marla residential and 2.5 marla commercial plots and smaller sized Villa Apartments of Harmony Park block created an instant demand and were selling for a profit shortly after being launched (more on that later). Click here for more details about the project features of Capital Smart City.
In short, the demand for Smart City’s residential and commercial plots had been rising sharply over the past three years. Have you wondered what all the hype is about?
Is it really worth investing your hard earned money into a piece of land that is not even developed yet? Is it really as good as depicted by the marketers and sales persons?
We talked to our real estate market experts to find answers to all of these questions and we have come up with five reasons why you should invest in Capital Smart City. So, we say, Why Not? Why not invest in this huge project brought by the top real estate developers of Pakistan, Habib Rafique Pvt Limited (HRL)? Why not invest in the epitome of quality and luxury living; a smart city equipped with a blend of technology and nature? Why not invest in the future?
Five Reasons Why Not to Invest in Capital Smart City!
The success of a housing project is not just determined by its vision and planning but also by the implementation on ground and management afterwards. The quality and credibility of Capital Smart City, as a housing project, is evident in the past projects delivered by its developer, the excellent planning and management team, and the rapid progress of the development work.
Through our research from credible and direct sources, we have come up with five reasons why you should invest in Capital Smart City. If you want to know different ways in which you can invest in Smart City, check out our article on pricing and latest market rates of Capital Smart City.
1. Habib Rafique Limited – Credible Developer and Excellent Management
The project, Capital Smart City is being developed by one of the most credible real estate developers of Pakistan, Habib Rafique Pvt. Limited. Under the umbrella of their successful projects come Royal Orchard in Multan and Smart City Sahiwal. Excellent design and planning team combined with an efficient management team has led to the success of the project so far. This is what makes the project so promising that every one wants to be a part of it.
Excellent Design and Planning Team
The team of Capital Smart City includes many large international names – the experts from around the world – who are working together to make the project a one-of-a-kind housing society in Pakistan.
The master plan of Capital Smart City is being designed by Surbana Jurong, a Singapore based consultancy firm and currently one of the largest Asia-based urban, industrial and infrastructure consulting firms. Surbana Jurong has immense experience in designing smart cities around the world.
Moreover, the 18-hole signature gold course is being designed and developed by Harradine Golf. Cracknell, Troon Golf, Designmen Consulting Engineers and DSA Architects are some of the other such firms on the consultant panel of Capital Smart City. Visit the project profile of Capital Smart City for more details on this.
The inclusion of renowned experts in the design and planning team ensures high quality of the residential and commercial project. This is also one of the main reasons of high credibility of the project among investors and real estate experts.
The role of the management of Capital Smart City in the success of the project is highly commendable, particularly the senior management including the Chief Operating Officer, Malik Muhammad Aslam, and General Manager, Mujeeb Ahmed Khan. While the design team is highly professional and expert, a good management team is essential to keep things under control for a successful project.
Timely sales, financial management and cash flow management are key for smooth onsite development work of housing societies. Often the development work of housing societies gets delayed because the members do not submit their dues timely and project runs out of cash. The development work of Capital Smart City has been going on at a rapid pace, showing excellent recovery and cash flow management by the company.
Furthermore, the senior management of the company always keeps their strategic and sales partners such as their authorized agents onboard. They tend to protect the interests of their valuable investors, members and sales partners. This largely contributes to the positive brand image in the market.
In short, the top management of Capital Smart City has shown excellent performance so far in recovery and cash flow management while holding market confidence and sustaining a positive brand image at the same time.
2. The Art of Keeping the Market Alive
Since it was launched in mid-2017, Capital Smart City has kept the market alive and active for the past three years. The sustained popularity of the housing project in the real estate market of Islamabad depicts that the confidence of the market has strengthened over time.
Their are several tactics used by the management of Capital Smart City that have led to the success of different products launched by the society from time to time. Broadly speaking, under-pricing strategy and occasional deals are the two main tactics that we have detected.
Under-pricing Strategy by Capital Smart City
Under-pricing refers to the phenomenon under which a product is priced below its market worth. Capital Smart City has been consistently using the under-pricing strategy whenever a new product is launched. When a product is under-priced, higher demand with limited supply pull the prices up to the market price, causing “investor profits” in the case of real estate industry.
This keeps the demand high even after the society increases the price after a while (which Capital Smart City has been doing consistently). Here are the payment plan and pricing details of Capital Smart City.
Launching a product at a low price appeals to a large number of investors and creates an instant demand. For example, Capital Smart City recently launched 3.5 marla plots in Harmony Park block at a price of Rs.1,500,000 (Rs. 15 lacs) which is Rs. 430,000 per marla at a time when their 5-marla plots were being sold at Rs. 482,000 per marla. Moreover, smaller sized plots generally have more liquidity due to higher affordability anyways. The combined effect of both led to instant success of the new 3.5 marla plot. Due to limited supply, the market rate soon increased and the plots were selling at a profit of Rs. 30,000.
Since the market believed that 3.5 marla plots are cheaper than 5 marla plots when looking at per marla rates (i.e. under-priced), they knew that the price was going to increase and were ready to buy even after the company raised the price to Rs.1,610,000, and then to Rs.1,789,000.
The same thing happened at the launch of 2.5 marla commercial plots in Harmony Park block of Capital Smart City (Click here for details).
Enticing Deals and Discounts
Real estate market involves large-scale transactions, both financially and physically. The funds required for investment are large as well as the time required for the completion and delivery of the product. You are paying your hard-earned money for something that has not even been developed. Essentially, you are paying for a promise! and promises are based on faith!
Rumors flood the market as soon as the market is quiet about such projects due to the lack of authentic news, making the investors confused and worried. The developers of Capital Smart City have been keeping a check on the market since the beginning. Even before the market starts to become sluggish, they launch some sort of a deal or discount offer to energize the market again.
For example, in October 2019, the society offered general block members to submit their dues and deposit up to 50% of total price to convert to executive block. In November 2019, they offered all members to deposit 50% payment and participate in the first balloting; this made waiting for balloting much more interesting.
Finally, the amazing discount offer in April 2020 for members and new bookings provided an instant boost to the market when everyone else was drowned in stress caused by Covid-19.
Obviously, this is a recovery strategy for the management (which is a positive thing if the society is using the funds for rapid development, as we discussed in previous point). Nevertheless, it keeps the energy alive and we believe that this helps sustain the confidence of investors in the project.
3. Strategically Launching Products
Instead of dumping the market with the entire portfolio, Capital Smart City has been strategically launching their products one-by-one. Surely, this must have allowed them to adapt to the market demand and improve their product portfolio as well as overall project. Nonetheless, for the market, this has held the interest of investors and end consumers, often catching them by surprise.
Recently, Capital Smart City launched The Harmony Park block with smaller residential plots of 3.5 marla and finished Villa Apartments of 3.5 and 5 marla. The market had become saturated with the previous residential and commercial plots even though the society had been working on keeping the market occupied through offer and deals. However, after the first balloting, the market for Smart City’s products had slowed down and was waiting for next balloting event to trigger movement.
The launch of Harmony Park block brought a new energy in the market and Capital Smart City was the talk of the town once again. Similarly, when the booking of 3.5 marla residential plots started to slow down, they launched 2.5 marla commercial plots in Harmony Park and the response was astonishing.
So, why does this strategy work? This allows investors to earn reasonable profits on one investment, exit and move onto the next. Let’s put it in simple words.
Short-term investors like to rotate their funds between different products. They would invest in the early stages of a product life cycle and exit before the market becomes stagnant. By launching their products periodically, Capital Smart City is able to retain its short-term investors as they can rotate their funds between different products. Since the investor already trusts the project and is happy with the returns, this prevents him from moving to other projects.
Example Continued: So, by the time the investors were ready to exit from 3.5 marla residential plots, the society caught them by surprise and launched 2.5 marla commercial which was a huge success.
In a nutshell, the strategic launching of products by Capital Smart City benefits investors by allowing them to rotate their investment among different products. Moreover, this also allows end consumers to analyze the scope of each product before they choose one product for long-term investment.
4. Capital Smart City Does Not Over-Sell
Fraudulence is a major concern of every real estate investor. It seems common practice for new housing societies to oversell plots to gather more funds in the beginning. Over-selling occurs when a new housing project sells more plots than are available in their inventory. Oftentimes, the society will not be able to acquire enough land and get approval for the number of plots that they have already sold.
They would either cancel the over-sold bookings (which also results in deduction of 25-30% amount and delayed recovery) or fail to deliver altogether. This leads to huge losses on the end of investors and members.
Capital Smart City does not oversell which is also why the supply on their products is limited. Often, their files sell at a profit shortly after being launched which is sometimes confusing for new investors.
For example, the commercial plots of 2.5 marla were selling at a huge profit a few hours after being launched. Some negative reviews floated in the market questioning the fairness of profits and availability of plots, asking whether there is a even black market. In our post, “Capital Smart City Launches 2.5 Marla Commercial Plot – The hype is crazy!”, we have discussed this in detail and explained how there is no black market, instead, the profits are a result of the interaction of demand and supply and the under-pricing strategy by Smart City.
Owing to high demand, the society could have continued to take bookings with the intention of canceling them later. On the contrary, we have observed that the management of Capital Smart City would cater to the high demand by trying to adjust or create more supply before they take more bookings.
More often, as in this case, they would let their investors enjoy the profits and increase the price after a while.
5. Rapid Development of Capital Smart City
The success of any real estate project is measured by the ability to fulfill the promises made at the time of booking. No matter how perfect the idea and planning of a smart city is, it would not be of any good unless the idea is implemented in reality. Backed up by one of the top real estate developers of Pakistan, the real estate market has faith in this project unlike any other.
An important factor contributing to the confidence of investors and real estate market experts is that Capital Smart City is the fastest developing housing society among all the recent ones in Islamabad. Our representatives have visited the site and have disclosed some amazing updates about the development work that is going on the site of Smart City. Read about the recent development work updates of Capital Smart City here. Some images are attached for reference.
First balloting of of more than 6,000 plots of overseas and executive block of Capital Smart City has been done in December 2019 after the society obtained the official NOC from RDA.
The master plan for Overseas block 1 and Executive block 1 of Capital Smart City has also been released after the first balloting in December 2019. Click here to download the master plan of Capital Smart City as of December 2019 (please allow some time for the pdf file to load).
So we ask, why not to invest in Capital Smart City?
Now you know where all the hype about Capital Smart City is coming from. The excellent management team, rapid development work and visionary design and planning of the housing project have captivated the investors and end consumers. Moreover, the prices of both residential and commercial files of Capital Smart City have been rising showing the confidence of the market. Do you still have any excuse of why you should not invest in Capital Smart City?
Based on the past and ongoing market dynamics, our experts strongly believe that investors of this project will harvest large amount of profits if connected with the right realtor. We emphasize the importance of choosing the right real estate agent or portfolio manager to protect your interests and hard-earned money. Read more about why you need a good real estate agent here.
The five reasons carefully picked and discussed in this article give a reassurance about the credibility and reliability of the project. At Islamabad Projects, we perform the due diligence of the project from an objective viewpoint to protect the interests of our readers. Leave a comment below to provide your feedback or ask any questions that you might have about the project.
To find more details about Capital Smart City, visit the project profile or simply contact our featured real estate agent, Sahban Tariq Malik – a market expert, authorized agent and diamond partner of Capital Smart City and a real estate portfolio manager with more than 1000 national and international clients – at +92 334 5557734.