Impact of violence: Land, home prices decline in Kabul

KABUL (Pajhwok): Property dealers in capital Kabul say the prices of land plots and residential buildings have declined following the recent spike in violence in the country.

Taliban militants have captured over 100 districts in various provinces of the country in a period of two months that has worried the Afghan people about their future.

A number of property dealers in Kabul city and on the outskirts of the city told Pajhwok Afghan News that their businesses had declined to almost zero and people were uninterested in buying new properties.

Saboor Azizi, a property dealer in Qala-i-Fatullah area in the fourth police district of Kabul, told Pajhwok that house and property sales had sharply declined due to worsened security in the country.

He said that house prices had declined almost by half compared to the past. However, he added that people still rented and leased out houses against reduced rates.

Malak Nisar Ahmad Rahrawan, a property dealer in Chehlsoton area in the seventh police district of Kabul, also said that the real estate prices had recently declined.

“When there are no deals and no one buys homes, how someone would know the prices have gone high or down,” he said.

The rent of houses has also downed as apartments with the previous rates of 11,000 to 12,000 afghanis are now rented for 8,000 or 7,000 afghanis, he added.

He added the reason the house prices declined was bad security and unknown future of the country.

Some people sell their houses at lower prices and then move to secure parts of the city, he added.

However, Gul Ahmad, another property dealer in Kampani area in the fifth police district of Kabul, said that house rents had increased as people in provinces were fleeing conflicts and moving to Kabul.

But he said that there were currently no deals on house sales. “Many people have registered their houses for sale, but no one buys them,” he added.

He said that their businesses had stopped and that the government should work for the improvement of security in the country.

Some other property dealers said that conflicts from one side and bad economy from another were the reasons people were uninterested to buy houses on high prices or pay high rents.

A property dealer in Khair Khana area of Kabul, also said that house rates had declined in the area.

He told Pajhwok Afghan News: “A man has registered his house with since past three months but no client has come to buy or get it on a rent.”

Another property dealer in the Ahmad Shah Baba Mena said the rate of plots and houses had declined due to insecurity and lawlessness.

“Few clients come to buy house or plot because people are cautioned and don’t want to buy property in insecure areas”.

He, however, said house rents had surged because of the conflict in provinces and people had to migrate to cities.

Mohammad Zia, another property dealer in the Kart-e-Naw locality, said their business activities had been on the decline over the past six months.

He said there was no buying or selling of houses and plots but some people sold their properties at low price as they were worried about insecurity and lawlessness.

Zia said people could not purchase or buy property due to bad economic condition. People get house on lease instead, he added.

He said the only reason behind decline in property business was insecurity, poverty and bad economic condition.

The residents of Kabul also talk about decline in property rates and problems faced by people in this regard.

Ahmad Bilal, a resident of Ahmad Shah Baba Mena, said rents went down in winter and houses become empty but in summer the rents go up and empty houses could not be found easily.

He also acknowledged the reason behind declining house rates was insecurity.

Hashamtullah, a resident of Kabul’s fifth Municipality District, said in the past when they wanted a rental house it was could be found easily but now getting a house on rent is a difficult task.

He added in insecure areas rental house could be found at reasonable price with low marketing value.

Triq Waheed, a resident of Bagrami locality, said their business suffered due to insecurity and bad economic condition.

Afghanistan’s Chamber of Commerce and Industry Khanjan Alkozai said uncertain future of peace, economic and security issues hampered property business.

He added businessmen were trying to move their capital abroad over the past two years and this contributed to growing poverty and insecurity.

He said the government should ensure security to promote business and attract investment. This will help improve public economic condition.

Mds/nh/ma