Home and land prices have declined in Kabul, due to fears over the country’s political and economic future, though demand for property rent and leasing has increased.
Kabul Property Dealers Union said that concerns over political and economical situation, the exit of foreign troops and a delay in signing of Bilateral Security Agreement (BSA) has resulted in prices for homes and lands to decrease significantly, up to 50% in some instances. This union adds that those who have money are trying to lease the houses.
“In the past years, one acre of land was around $90,000 to $100,000 while today, the same land is worth anything from $40,000 to $50,000, houses” said property dealer Ahmad Shah Sahel.
With the exit of non-governmental organizations from Afghanistan, rent prices have decreased in areas such as Shahr-e-now and Wazir Akbar Khan.
“Leasing has increased because many people don’t buy houses and they prefer to lease it so that when they need the money they can take it, while if they have purchased a house, they can’t sell it” said property dealer Najeebullah.
Property Dealers Union report optimism for the upcoming elections and say that, so far not many people have sold their properties to export their capital out of Afghanistan. “Foreign troops exit from Afghanistan and lack of foreign aid from the international community and lack of people trust in government has resulted in the decline in prices,” said Muhammad Qasim.
This Union believes that during the past 11 years, high prices of property in Kabul were fake, but it is predicted that after 2014, these prices will start to be more realistic.
The Kabul municipality says it is not involved in the private property market.
“When someone buys or sells their house or land we don’t interfere, because not only in market economy but economy policy too, buying and selling of houses is not something that government interferes in,” said Younus Nowandesh, Kabul Mayor.