QUETTA, Feb 10: The real estate business responded differently in Quetta and Gwadar reacting to administrative actions and the political climate with varying prices at different level.

There is a steep rise in prices of real estate in this provincial capital attracting massive investment from all corners--from genuine buyers to the drug barons--or people having black money.

The rise in prices has been constant in Quetta for years. Even, the military operation in the province during the recent months did not stem the growth of prices of real estate and the people were ready to pay the higher prices.

Some people thought that the Quetta valley was the most costly township where real estate prices are higher than any other city of Pakistan.

The reason was the induction of drug money into the business. Buying and selling of property was inseparably linked with the poppy crops in the neighbouring Afghanistan.

However, the real estate prices crashed after the death of Nawab Bugti in military operation and widespread agitation in different parts of Balochistan making the property insecure.

"The prices of property frizzed at a level after falling 10 to 20 per cent in Quetta since August last," Iftikhar Pervez, a real estate businessman told Dawn, adding that the people were contacting property dealers for selling their property but there was no purchaser. He said that last year the market of real estate was up and people were getting good price of their property.

Deteriorating law and order and worsening political situation are badly hampering the real estate business. Bomb blasts, rocket attacks and hurling of grenades in houses in posh localities was another big reason that is also restricting investment in the property business. "We are waiting for the spring season when people would return to Quetta after spending winter vacation," he said.

According to another property dealer the drug barons and people having black money usually like to purchase property having commercial value and they pay good price to the owners of houses near main commercial centres.

With the passage of time the old residential areas of Quetta city were converting into commercial areas. "The old Quetta city is becoming the city of multi-story buildings and plazas as people are investing their money in this business," Ifranullah another property dealer said.

However, the situation in Gwadar is totally different. There is a fall in prices following unearthing the land scam involving big people. The fall in property prices was linked with the fears about security of investment. The people were reluctant to invest their money in residential, commercial and industrial plots in Gwadar.

This trend affected the prices of real estate as people who purchased residential or commercial plots started selling them to save them from further loss.

However, the agreement signed with the Singapore Port Authority for operating the Gwadar Port, and the government announcement to establish a huge industrial estate, a free trade zone and other projects, including oil terminals, huge refineries, attracted the investors again to spend money in buying property in Gwadar.

"Signing of agreement and announcement of various incentives by the federal government increased the prices of real estate by 100 per cent in last one week," Fazalur Rehman a leading property dealer told Dawn. He said that a residential plot of 1,000 yard in Singhar Housing scheme was available at Rs1 million but after last one week the price of such plot has reached up to Rs.1.8 million to Rs2 million.

He said that after the formal inauguration of the Gwadar Port the price would further go up in Gwadar. He said that presently 50 private housing and commercial schemes were selling plots and after agreement with the Singapore firm the sale of plots has increased.

The project director of Gwadar Industrial Estate M. B. Magsi also indicated that the real estate business would further flourish in Gwadar as the confidence of the investors was restored after the steps taken by the federal government.

"A large number of industrialists are approaching us for purchase of industrial plots in Gwadar Industrial Estate," he said. Investors from abroad including Dubai have also shown interest in investing in the industrial sector. In view of increasing demand the provincial government is considering to allocate more land for the expansion of industrial estate in Gwadar.