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Falling a year ago, home prices up by 24pc in Kabul

Falling a year ago, home prices up by 24pc in Kabul

author avatar
19 Sep 2022 - 20:58
Falling a year ago, home prices up by 24pc in Kabul
author avatar
19 Sep 2022 - 20:58

KABUL (Pajhwok): Prices of properties had declined in Kabul on average by 47 percent after last year’s regime change. However, the situation has changed now, with real estate rates spiking by 24 percent, Pajhwok Afghan News have learnt.

One political analyst explains commodity prices tend to tail off in times of economic recession. Once the crisis is over, he explains, the situation gradually returns to normal.

The surge in property prices means people have started thinking that the situation is improving, the expert says. This, however, does not mean that Afghanistan has achieved economic stability.

Pajhwok Afghan News gathered information regarding buying, selling, rental and mortgage rates of 10 room-houses, three-room apartments, three-room homes on three biswas of land and three-biswa plots from property dealers in Shahr-i-Naw, Khoshal Khan and Qasaba localities of Kabul.

The real estate agents were asked about property rates and the margin of differential between prices under the previous government and the incumbent caretaker administration. Their views were also sought on property prices in the initial days of the current government and now.

On August 15, the government of Ashraf Ghani was ousted as the Taliban came to power in Afghanistan for a second time.

Following the regime change, the US and its allies evacuated around 150,000 Afghans who worked for them over the past 20 years. Other people also strived to leave the country, something that triggered a drop in property prices.

Homes rates

Pajhwok’s findings show the prices of homes dropped by 36 percent after the collapse of the previous government. But these rates have now gone up by 14 percent.

Information from property dealers suggests the rate of a three-room apartment before the political change in Kabul’s Shahr-i-Naw neighbourhood hovered around 8.3 million afs, 4.1 million afs in Khoshal Khan area and 2.2 million afs in Qasaba locality.

In the initial days of the Islamic Emirate of Afghanistan, the prices in Shahr-i-Naw dropped to 4.8 million afs, in Khoshal khan to 2.4 million afs and in Qasaba to 1.1 million afs.

But at the moment, a three-room apartment accounts for around 5.7 million afs in Shahr-i-Naw, around 3.8 million afs in Khoshal Khan and around 1.3 million afs in Qasaba.

Before regime change, the rate of a three-room house stood at around 30.8 million afs in Shahr-i-Naw, around 13.2 million afs in Khoshal Khan and around 4.1 million afs in Qasaba.

As the Taliban stormed into power, the price slumped to about 17.8 million afs in Shahr-i-Naw, 8.3 million afs in Khoshal Khan and 1.5 million in Qasaba.

Currently, the rate of a three-room house in Shah-i-Naw is approximately 22 million afs, in Khoshal Khan around 8.5 million afs and in Qasaba 1.8 million afs.

As of now, the rates of a 10-room house in Shahr-i-Naw stands at around 57.2 million afs, in Khoshal Khan at around 39.6 million afs in Qasaba it at around 13.2 million afs.

During the preliminary period of IEA, the value of a 10-room house in Shahr-i-Naw slumped to around 44 million afs, in Khoshal Khan to around 22 million afs and in around Qasaba to 8.3 million afs.

Presently, the rates stand at around 46.2 million afs in Shahr-i-Naw, around 26.4 million afs in Khoshal Khan and stpimf 10.5 million afs in Qasaba.

Home rental rates

Findings of Pajhwok show home and property rental rates dropped by 60 percent after the regime change last year. However, the rates have lately mounted by 50 percent.

According to property dealers, before the regime change, the rent of a three-room apartment was around 35,200 afs in Shahr-i-Naw, 14,000 in Khoshal Khan and 8,000 in Qasaba.

During the first days of the new government, the monthly rent rate for a three-room apartment was around 15,400 afs in Shahr-i-Naw, 7,500 afs in Khoshal Khan and 4,250 afs in Qasaba.

Currently, the rent rate for a three-room apartment in Shahr-i-Naw is around 19,800 afs, in Khoshal Khan 10500 afs and in Qasaba 5,000 afs.

Similarly, before regime change, the rent rate for a three-room home was 44,000 afs in Shahr-i-Naw, 15,500 afs in Khoshal Khan and 12,500 afs in Qasaba.

In the initial days of the sitting administration the monthly house rent rate in Shahr-i-Naw area was 17,600 afs, in Khoshal Khan 15,500 afs and in Qasaba 6,500 afs.

Currently, the rent rate for a three-room house in Shahr-i-Naw is estimated at 22,000 afs, in Khoshal Khan at 11,500 afs and in Qasaba at 8,500 afs.

According to property dealers a 10-room house rent rate in Shahr-i-Naw before the regime change was around 198,000 afs, in Khoshal Khan 90,000 afs and in Qasaba around 50,000 afs.

During the first days of incumbent government, the rent rate for a 10-room house in Shahr-i-Naw was 80,000 afs, in Khoshal Khan 30,000 afs and in Qasaba 18,000 afs.

At the moment, the monthly rent of the same-size house in Shahr-i-Naw is 120,000 afs, in Khoshal Khan 50,000 afs and in Qasaba 30,000 afs.

House mortgage rates

Pajhwok’s findings indicate the mortgage rates of a house in the capital dropped on average by 57 percent. But now, it has gone up by 22 percent.

A three-room apartment’s mortgage before the regime change in Kabul would cost around 2.8 million afs, in Khoshal Khan 2.2 million afs and in Qasaba 924,000 afs.

In the wake of the IEA takeover, these rates dropped to around 1.5 million afs in Shahr-i-Naw, 748,000 afs in Khoshal Khan and 308,000 afs in Qasaba.

Similarly, before the regime change, the mortgage rate of a three-room home was around 3.5 million afs in Shahr-i-Naw, 2.5 million afs in Khoshal Khan and 1.8 million afs in Qasaba.

In the initial months of the Taliban government, the mortgage rate of a three-room house in Shahr-i-Naw area was around 1.9 million afs, in Khoshal Khan 968,000 afs and in Qasaba 6,600 afs.

Currently, the mortgage rate of a three-room house in Shahr-i-Naw works out at 2.2 million afs, in Khoshal Khan at 1.1 million afs and in Qasaba 836,000 afs.

Property dealers say a 10-room house mortgage rate in Shahr-i-Naw  before the regime change was around 11.8 million afs, in Khoshal Khan 4.4 million afs and in Qasaba over three million afs.

During the first days of incumbent government, the mortgage rate for a 10-room house in Shahr-i-Naw was 8.4 million afs, in Khoshal Khan 2.2 million afs and in Qasaba 880,000 afs.

At present, the monthly mortgage rate for same house in Shahr-i-Naw is around 5.7 million afs, in Khoshal Khan 2.6 million afs and in Qasaba 1.3 million afs.

Currently, a three-room apartment is available for 1.7 million afs in Shahr-i-Naw, 1.1 million afs in Khoshal Khan and 484,000 afs in Qasaba.

Plot prices

Pajhwok’s findings show the average price of a 3-biswa residential plot in Kabul decreased by 36 percent after the ouster of the previous government. However, the prices have now risen by 11 percent.

Property dealers recall that before the fall of the previous government, the average price of 3-biswa plot in Shahr-i-Naw was 26.4 million afghanis, in Khoshal Khan 12.3 million afghanis and in Qasaba 2.8 million afghanis.

But in the initial months of the caretaker regime, the price of the same-size plot in Shahr-i-Naw tumbled by 16.7 million afs, in Khoshal Khan by 8.3 million afs and in Qasaba 1.5 million afs.

But the current price in Shahr-i-Naw has once again increased to 18.4 million afs, in Khushal Khan to 8.8 million afs and in Qasaba to 2.2 million afs.

Upward trend in property prices

Property dealers say after the fall of the previous administration, selling, purchasing and mortgage rates of homes had plummeted. But the business is once again showing signs of improvement in Kabul, where home prices are on the rise.

Minallah, in charge of the Sadiqan Ariana Property Office in the Qasaba area of 15th police district, confirmed the buying, selling, rental and mortgages rates of houses were on the rise under the previous government. Having gone down after the political change, the prices are increasing again with each passing day.

He argued the downturn after the Taliban takeover had resulted from the large-scale evacuation of Afghans, who sold their houses at almost half of their prices. As a consequence, rent and mortgage rates also plunged.

Yar Mohammad, owner of the Hari Rod Property Office in the 10th police district, agreed the real estate business in urban areas flourished during the previous government, so much so that houses could not be found on rent.

He noted demand for buying, selling and renting houses was currently much higher than the preliminary months of the new government.

Qari Khabir, proprietor of the Oriakhail Property dealing office in 5th police district, said people were not interested in purchasing land, as prices of construction materials had jumped and it was not easy to build new houses.

Mortgage and house rents in this area are once again witnessing an upswing. Many people are mortgaging and renting out their houses. He also confirmed escalating property prices.

Stability returning to market

Economist Qais Mohammad says prices drop in an unstable economic situation. But after the crisis, the market gradually returns to its original state.

With property prices in Afghanistan increasing by 24 percent, he adds, people believe they have either come out of the crisis or are poised to do so. But it does not mean the economy of Afghanistan has been stabilised.

If more Afghans return from abroad, Mohammadi hopes, the sale and purchase of properties will pick up. Once the political situation becomes stable, prices of houses will escalate, he opines.

Demand for purchasing, renting and mortgaging houses in Kabul has surged, he says, explaining the hike does not amount to an improvement in the economic situation of the people, with many still trapped in financial woes.

The real estate business, according to him, is being run by those who were previously worried about the economic situation of the country and were not interested in further investments.

Nh/sa/mud

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