4 Marla Commercial Files DHA Lahore options and their respective returns
This article will focus on different areas of four marla investment in files. The study will help you make an informed decision and depending upon your budget help you choose between different options. All available options are discussed in the article one by one.
We will now have a deeper look into different files so that we can compare and contrast these options
1. Phase 5 M block file
Phase 5 M block four marla commercial option would cost you roughly 3 crores and above as of February 16, 2017. The prices have seen an upward trend in the past years. M block is situated on the other side of the ring road from Phase 5 J and C block respectively. The file as an investment is a good options but I believe that the end result would be disappointing as it is going to be a small block and the number of files are more than required. The end commercial product which is the plaza would follow the demand of the residents of the particular area. The files are abundant as compared to the residential plots. M block wouldn’t in times to come require that many commercial plazas when residents of M block start inhabiting the area. This file is therefore, not recommended from an end user point of view and in terms of returns on the file I don’t think the price would ever surpass that of D and B block commercials which exist in the midst of the populous and the prices are relatively stable and you could probably procure a plot for roughly 4 crores to 4.25 crores as of today.
2. Phase 6 MB (Main Boulevard) file
Phase 6 MB file is a good investment in terms of file investment starting at 3 crores and 90 lacs as of February 16, 2017. This would benefit you once the ballot is done of the respective location. The inherent problem is that even once balloted the rates won’t rise as they would in other files so one would have to wait for road works to start followed by trading of balloted plots for your balloted non-possession plot to rise. It tends to give you good returns if the location is good otherwise people would offer you what the file rate is and you would be selling it a loss of roughly 20 lacs which is the development charges against four marla plots. You might have to buy in and wait for a year or two to get the maximum return on your investment.
3.Phase 6 E block 4 marla file
This file has seen the highest rates in the past at 4 crores and fifty lacs but the E block commercials don’t have any potential if the commercials would be allocated in 5 marla area of E extension. Only if E block files are moved to CCA 2 of Phase 6 then and only then would they have some potential. I believe one should not buy these files because a 5 marla, 10 marla community doesn’t have that much purchasing power it’s better to buy a CCA 2 plot for the same price.
4.Phase 7 4 marla file
Phase 7 four marla file is a good investment in terms of the balloted results but not at all from an end user’s perspective. The reason for this is that the balloted plot starts at 290 lacs and goes to an upwards of 350 lacs. So in any case when you buy the file at 265 lacs which is the rate as of February 16, 2017 you can expect at least 10-20 lacs on top once the file is balloted. The end user plot is not to keep as there are many commercials in Phase 7 more than necessary. Plus the locations are not premium except that of CCA 1.
5.Phase 8 Broadway file
Phase 8 Broadway file stands at 290 lacs as of February 16, 2017. This means that an additional 2 million is required in the form of development charges. Another problem with this price tag is you might not be able to sell the balloted plot at a good rate unless the location is good which is doubtful. But from the end user perspective and if you can hold it for a year or two it would give you exponential returns as Broadway plots have in the past. The history of investment has been outstanding in Broadway and it has given returns as high as 60% per annum in the past. Therefore, if you can increase your budget by 5 million you can procure a plot which would give you very good returns and if not then the file is the best bet for you.
6.Park View 4 marla Commercial file
People hesitate to invest in Park View files. I personally believe that it would give abnormal returns in times to come as there are no existing 4 marla plots in Park View. This means once balloted they would be high in demand. These files would be balloted amidst a populous which primarily consists of a 2 Kanal community, therefore, their purchasing power is amongst the highest in DHA. There are two kinds of files Malikpur file and Shivpur file and the rates vary by 10 lacs Malikpur being the more expensive one. DHA doesn’t differentiate between these files because it would only say 4 marla Park View allocation on the allotment letter. This difference is created by the market just as there’s difference in other Phases of Mauza’s as well. A Mauza is the area name of a village or place.
7.Phase 9 Town File
Phase 9 town 4 marla file is a very good investment the prices have risen astronomically in the past few weeks. The price stands at 315 lacs as of February 16, 2017. The reason is that the files are being allocated plot numbers and the numbers allocated are falling into the E block commercials. This is the major reason for the price hike. I believe that the plot prices will rise once ballot is completed and trading starts in the respective plots. The end user connotation in this Phase is not that strong as a 5 marla community will not have a good purchasing power compared to other phases where 1 and 2 kanal residents will shift in times to come. Phase 9 town file is advisable if you want a slight jump on investment and a short term trade. If you hold it for a longer period the price would still increase but the per month profit percentage might not be as great as it would in other investment areas.
8.Phase XI Rahbar 4 marla Commercial file
This in my opinion is a very sound investment because of the rapid development going on in and around that area. The southern loop of ring road is being constructed in the region. Other than that a bridge is being constructed which would land directly next to DHA Rahbar. From an investment point of view the file which stands at only 196 lacs as of February 18, 2017 would see an increase in plot prices once balloted. The market rumor indicates that the ballot is not that farfetched. In both cases which is the bubble which would be created near the ballot plus once the plot number is allotted you can expect a significant increase in price. It’s up to you to determine the exit either when the bubble formulates and secondly if you want to hold it for a longer period and sell a plot in the future. It is one of the safest bets you can have in terms of investment in a file.
Recommendation and Conclusion:
Let’s list them in terms of priority and trade time.
- Park View Medium Term 60% expected ROI (Return on Investment)
- 9 Town file Long Term 40% ROI
- DHA Rahbar Short-Medium Term 25% ROI
- MB File Medium Term 20% ROI
- Broadway Short-Medium Term 10-25% ROI
- Phase 7 Medium Term 35% ROI
- Phase 5 M Medium Term 15-20% ROI
- Phase 6 E Medium Term 10% ROI maximum risk is expected
Khawaja Umer Shehzad
MBA Finance (Cardiff UK)