Analysis Report DHA Rahber Phase 11 Phase 2 Ext Balloting

Analysis Report DHA Rahber Phase 11 Phase 2 Ext Balloting

DHA Rahber now known as DHA Phase 11 is one of the latest developments being undertaken by DHA Lahore. After the success of Phase and 2 DHA has been working on the Phase 2 ext of DHA Rahber. One of the most glaring things which are going to make DHA Rahber Phase 2 ext a great investment is its premium location. Just like DHA Rahber Phase 1 it is located on the main defence road. The construction of ring road along its outer circle makes it all the more premium. If you have read our article about good location plots and bad location plots we discussed in detail how approach and accessibility plays an important role in the uplift of a society. After the construction of the ring road which is expected by the end of this year. DHA Phase 11 Rahber will be just 10 mins drive from the Allama Iqbal international airport and rest of DHA phases and 15 to 20 mins from other happening places of Lahore.

DHA Rahber Phase 2 Ext is in the middle of some big names and societies all along Defence road such as Muhafiz Town, Engineers Town, Valencia, KEMC society etc.

Sadoki and Halloki what is best

DHA Rahber Phase 11 Phase 2 Ext is divided into two main Mauzas, Namely Sadoki and Halloki. Plot files which are available in the market are also referred as such and mainly consists of 5 Marla, a few 10 Marla residential plots, 4 Marla commercial and a few 8 Marla commercial plots. A general market understanding is that because Sadoki Mauza has a better location thus the files of that area are a bit expensive. The difference between Sadoki and Halloki file is usually varies from 1 to 3% of price with Sadoki leading.

As per the previous history of DHA, the balloting of both areas namely Sadoki and Halloki shall be conducted combined and there will be no difference in both. However the investors feel that it is better not to take risk and prefer Sadoki file over Halloki. In the end it all comes down to you and your calculation of the risk assessment. DHA Lahore is silent in this regard and has not clarified if the balloting will be effected by the different areas or not.

My personal take is that the balloting of both areas namely Sadoki and Halloki will be done without distinguishing them from each other. however i may prefer Sadoki if the price difference is only 1 to 1.5 %.

Expectation of Ballot DHA Rahber Phase 11 Phase 2 ext

There is a strong rumor that plot balloting of Phase 2 ext is expected to happen in August or September this year. So far DHA Lahore has not given any official statement in this regard, however it has been confirmed from many sources that the balloting will be conducted this year. Plot balloting is always fruitful and positive for any society as the master plan of the society is revealed and it is one of major milestones in the development of a society. In our previous monthly reports of DHA Lahore we have recommended many a times to invest in Phase 11 Rahber

A rule of thumb is that even the most cheapest plot after balloting is usually higher than the file price. Thus plot balloting gives investors who are looking for a sharp gain in prices an opportunity. The only down side is that bad location plots are slower to sell than files but than the chances of getting stuck with such a plot are very minimal.

In case of DHA Rahber Phase 2 ext the only area you should be worried is the location around the Rohi Nullah. Besides that remaining area is very neutral and should be considered as good. In my opinion it is sheer luck as usually in a society only 5 to 10% plots may be in an area which are hard to sell.

Investment opportunity in Phase 2 ext before Balloting

Right now you can invest in residential and commercial files of DHA Rahber Phase 2 ext. The residential file prices have been trading safely for some time at 30 to 32 Lacs and commercial files price is at 210 to 215 Lacs.

I believe that if you purchase any of these files than you will get a good reward in next few months after the balloting. An average residential plot in Phase 2 ext will be between 36 to 38 Lacs and an average commercial plot of 4 Marla will be between 250 to 275 Lacs. If you are lucky and you get a corner or some premium plot than add another 3 to 4 lacs in case of residential and 25 to 40 Lacs in case of commercial plot.

We also included the 4 Marla commercial file of DHA Rahber Phase 11 as one of the top commercial investments in the year 2017.

Recommended exit strategy

In previous years we have seen that a huge amount of investor interest in such trades would push the prices of files sharply high and that would offer a good opportunity to sell your plot and exit before balloting with great profits.

In the present market however, best is to wait and sell it after the balloting, if you do not want any kind of risk than you may sell it before balloting. However in this real estate market we are not seeing any major upward swings before balloting. So if you sell it before balloting you may not be able to capitalize all the profit but at the same time you will not get stuck with it in case you are allotted a bad location plot as well and can exit safely before balloting with some good profit.

Personally my investment is in a 4 Marla commercial file of Halloki, which i purchased in June at 208 Lacs. I plan to sell it before balloting if it takes a 2 to 3 million sharp rise and if not than i will hold it after balloting and sell it above 250 Lacs.

Whatever you may decide to do, stick to your plan and pray for the best. This is a good opportunity to make some money in the next few months.

Captain (Retd) Shahnawaz Yaqub Bhatti

Investment Consultant and CEO at Imlaak

Mob : +92 333 1717170 ( Whatsapp)