DC rates 2017

DC rates 2017 DHA Lahore: A study

DC rates 2017 have increased in Lahore DHA and elsewhere as well. Our focus would be on the DC rate increase in DHA Lahore. We have seen an exponential increase in some of the DC rates and this study will focus on the increment in different residential and commercial property rates. The new list has been presented below for your study.

(These are subject to change as per government policy the rates haven’t been finalized yet DHA is accepting an undertaking as soon as the revised rates are finalized we will keep you posted.)

Phase           2016 Residential/Kanal        2017 Residential/Kanal          Increase

1                                11,200,000                                        12,000,000               7.14%

1 K block                    10,400,000                                        12,400,000                19.23%

2                                 9,200,000                                        10,400,000               13.04%

3                                 9,200,000                                        10,400,000               13.04%

3 Y & Z                       12,800,000                                       14,200,000               10.94%

4                                 8,400,000                                         9,800,000                 16.67%

5                                 5,600,000                                         9,000,000                 60.71%

6                                 5,400,000                                         8,400,000                 55.56%

7                                 4,400,000                                         7,000,000                 59.09%

8                                 4,200,000                                         6,400,000                 52.38%

9                                 3,000,000                                       7,000,000                133.33%

11                               3,900,000                                         7,000,000                 79.49%

This shows that Phase 9 is the most affected by this increase in DC rates w.e.f. 01-07-2017 and the second most affected Phase is Phase 11 which has seen an increase of 79.49%. The calculation for the taxes is also given in the table below. To make it easier here’s a formula to help you out. We can see that the phenomenal increase in DC rates has been from Phase 5 onwards. The rest of the figures somewhat are justified. K block Phase 1 has seen an increase which has surpassed the DC rate of Phase 1 other blocks which is puzzling because no such development has taken place which would justify this increase and K block Phase 1 surpassing other blocks.

DC rate x 5% or 0.05 would give you the current CVT (2%) and Stamp duty (3%) combined

Phase           2016 Commercial/Marla        2017 Commercial/Marla       Increase

1                                  1,600,000                                         1,650,000                   3.03%

1 K block                     1,600,000                                          1,650,000                   3.03%

2                                 1,600,000                                       1,650,000                    3.03%

3                                 1,600,000                                       1,650,000                    3.03%

3 Y & Z                        2,650,000                                       3,200,000                   20.75%

4                                 1,450,000                                       1,650,000                   13.79%

5                                 1,050,000                                      1,500,000                   42.86%

6                                    750,000                                      1,200,000                   60.00%

7                                    550,000                                         800,000                    45.45%

8                                    810,000                                      1,000,000                    23.46%

9                                    260,000                                         550,000                   111.54%

11                                  280,000                                         550,000                    96.43%

Commercial rates have lesser increase in comparison to the residential plots. The most affected Phase again is the Phase 9 and a close second is Phase 11. Phase 6 and Phase 11 are the only two commercials which have risen above their residential counterparts. To one’s amazement Phase 8 commercial has seen a slight increase if we look from Phase 5 onwards. Phase 3 Y & Z block have seen a higher increment in old Phases which is justified if we look at the market prices which also have increased by 25% in the recent months.

These rates can help us as a factor in speculation of the future market trend as a whole as well as the activity which might increase or decrease in various phases residential as well as commercial.

Note: This is a list which has been provided to us by a third party, values might be subject to change as per government policy. This is true for now and maybe until the next fiscal year. We’ll however, keep you posted regarding any changes.

For further information and guidance contact the author at the numbers given below

Written by:

Umer Shehzad

MD Imlaak

MBA Finance (Cardiff University, UK)

(+92) 03208484630

(+92) 03004679010