To be honest it is a little bit strange to imagine Kabul as a new property frontier for investment portfolios. But recent reports from the capital of Afghanistan paint a different picture than we are currently used to from the media.
In 2008 alone Kabul’s property prices have apparently risen by 75 percent!
It seems that the rich and wealthy of Afghanistan are pooling their resources closer to home after the demise of many property havens across the world. A local building boom has somehow emerged among the demand for new city centre property. Aid agencies and embassies alike are keen on getting established in Kabul.
Many Afghans who previously invested their money into markets like Dubai are now buying property in their own home country instead. With the growth, there money is to be made and many are starting to take notice.
In the highly sought-after embassy district of Wazir Akbar Khan the cost of a four or five bedroom family house – complete with walled compound, substantial garden and electricity generator – has jumped 75 percent from £138,000 to as much as £243,000.
Assistant director of Faqiry Housing Information Agency, Noorullah Faqiry said “Until five months ago all the rich businessmen were buying houses in Dubai and now they are coming to buy in Kabul.” He also reported that housing prices had increased by some 30 percent in the last five months alone.
While this growth looks promising for investors, it isn’t much appreciated by the locals who have to survive on a measly wage of around £84 a month. Paying for a family home has now become near impossible for many Afghan families because of this rise in the market.
If the growth is going to continue then many Afghan people might be forced to take out credit they most likely will never be able to afford.
Photo credits: Eddy via Flickr