As the legal troubles of Malik Riaz deepen, one question is on everyone’s mind: Will prices in Bahria Town collapse, or can the real estate giant weather the storm and emerge unscathed?
The answer is not simple, it depends on several factors. For now, prices in Bahria Town have not crashed, despite social media rumors of a more than 50 percent drop in certain areas. However, market activity remains sluggish and is likely to stay that way until the situation becomes clearer.
What Sparked the Panic?
The recent auction of Bahria Town properties by the National Accountability Bureau (NAB), along with a stark statement from Malik Riaz, has rattled investor confidence.
Following NAB’s announcement, Riaz warned that the situation had reached a point where Bahria Town might be forced to shut down all operations across Pakistan.
“Our cash flow has been completely destroyed. It has become impossible to provide daily services, and we are unable to pay the salaries of our tens of thousands of staff. The situation has reached a point where we are being forced to completely shut down all Bahria Town activities across Pakistan,” he said in a statement.
Current Market Situation
In a recent report, BBC Urdu quoted individuals connected to the real estate market who expressed serious concern over the developments.
One property dealer said that tensions between the government and Malik Riaz had already dampened buying and selling for a long time. He warned that if Bahria Town’s offices close, property transfers for houses and plots would come to a complete standstill until an alternative system is put in place.
Another realtor told the publication that in recent months, the situation in Bahria Town projects has prompted many investors to liquidate their holdings and exit.
What’s Next for Bahria Town?
With multiple inquiries and legal battles ongoing, uncertainty continues to overshadow Bahria Town’s future. Under such conditions, new investors are unlikely to step in, while anxious existing investors may rush to offload their properties.
In the short term, there is little positive news for Bahria Town or its investors. However, depending on the outcomes of ongoing cases, the situation could improve in the long run. Still, whether the once-dominant Bahria Town can reclaim its position as Pakistan’s top real estate investment choice remains to be seen.
This is a general assessment of the situation and not investment advice.