MRA – Jan 2017 Property Market Report DHA Lahore
Notice : MRA (Monthly Real Estate Analysis) – Jan 2016 Property Market Report is a general guideline and does not cover all aspects of the market. The real estate trends vary even within blocks of the same phase and for a layman it gets very complicated and confusing. You can however attend our real estate briefing and discussion sessions held every Friday 7 to 8 Pm to answer your queries in person .
The big news this month is the possession of DHA Lahore Phase 8 proper, which was announced on 29th Dec 2016.
Our discussion forum is always open for real estate related questions and answers.
In this months market report our focus will be on DHA Lahore Phase 8 residential plots and Phase 9 Prism.
Present Market Condition
December proved to be the light at the end of the tunnel. It seems we have seen the bottom in November and the prices have risen sharply in December. Phase 8 of DHA Lahore came on top after the news of possession, similarly we are seeing a lot of interest in 9 Prism plots by investors as well.
This is good news for the real estate sector of Lahore over all. One big concern by the end of the year was the implementation of 3% advance tax in lieu of amnesty scheme. DHA required every individual to pay 3% advance tax regardless of having white money or not, this sparked concerns because as per earlier info the amnesty was only applicable to individuals who did not had white money. The matter has been taken to the FBR authorities and seems like they are willing to sort out the confusion created because of there mistake. The DHA Lahore real estate association is planning to take the matter to the court if not resolved at an earliest time frame.
DHA Phase 1 to 5
Phase 1 to 5 have remained stable and the Amnesty scheme has certainly brought hope back in the sellers who have now started to demand higher prices for there plots.
Keep your eyes and ears open for
Pentasquare and M block extension news.
Recommendation
a. Buy commercial for rental purpose.
b. We do not recommend buying in M block.
c. We do recommend that if you have a plot for investment in Phase 5, sell it and buy some thing in DHA Phase 8 proper.
DHA Phase 6
Prices in Phase 6 are stable, the selling pressure we noticed in November has eased off in December. However I am not very optimistic about Phase 6 as far as investment is concerned, I believe that Possession of Phase 8 will keep a check on the prices in Phase 6 . If the genuine buyers focus shifts to Phase 8 for constructing a house than we may see Phase 6 prices lacking behind. However this is some thing which will not happen over night and may take a year or so for a trend to establish.
Possession of S Block of Phase 8 will generally help to stabilize the MB commercials in front of N and L Blocks of Phase 6 and P block of Phase 7.
Keep your eyes and ears open for
a. Balloting of CCA 2
Recommendation
a. Buy residential plots in DHA Lahore phase 6 if available at a lower price than the market. That will pay you off in a few months.
b. Good opportunity to buy commercial on Main MB in front of N and L Blocks of Phase 6 and P block of Phase 7.
DHA Phase 7
Phase 7 has remained stable and we have seen interest of investors to buy plots at lower rates. Areas of Z1 of Phase 7 which are not under possession but are next to W block seem like a good buy between 125 to 130 Lacs.
Keep your eyes and ears open for
a. The commercial files of Phase 7 are showing a lot of spine and seems like it will be hard to see them go down to 220 Lacs, so i will raise our buy price to 235 Lacs for a short term trade.
Recommendation
Same as last month
a. If you have limited budget buy a plot in Phase 7 to make a house.
b. Buying 4 Marla commercials files in DHA Phase 7 on dips towards 220 to 235 Lacs is a good strategy for short term trade.
DHA Phase 8
This is where the action has been in December 2016. The rumors were out at the start of December and people were expecting the possession of S block by 29th December. This started to stabilize the market and the prices started to rise up. However DHA gave every one a nice surprise by announcing the over all possession of Phase 8 . Yes, a bit of development work is still to be done, but nothing to stop you from starting constructing a house.
It would have been much better if DHA announced the possession of S Block only and gave a date for the remaining blocks in a couple of months. This would have sparked a lot of trading opportunity in DHA Lahore Phase 8. However that did not happen and therefore we may not see the prices of Phase 8 going very high initially.
I believe the prices in Phase 8 will rise steadily now and the major catalyst will be the start of house construction. Genuine buyers will prefer Phase 8 in times to come so we will see a lot happening in 2017. In January we will see the prices gain back a bit on what they have lost in the previous months.
This is now the last opportunity to gain some benefits in Phase 8, the prices will continue to go upwards for a couple of years and will depend on the speed of the construction & demand of genuine buyers. You can still gain 2 to 3 million in next few months on a quick trade.
Z Ivy green is standing its ground, however the prices are not yet very lucrative for investors .
Ex Park view of Phase 8 is a great option and the prices are still my favorite for a 2 Kanal plot , reasonably good plot is available in almost 400 lacs and i believe is the best area to buy a 2 Kanal plot in this price.
4 Marla commercial files of Ex Park View are trading at 250 to 270 lacs and we believe that they are better than any other commercial files in DHA in these prices, we suggest that you buy them as there is a strong possibility of balloting soon.
Keep your eyes and ears open for
a. Possession updates.
Recommendation
a. We strongly recommend to buy residential plots on dips for investment or if you wish to make your own house. or buy 10 and 5 Marla plots in Y and Z block on dips.
b. Buy 4 Marla Shivpur or Malikpur files in Phase 8 Ex Park View any where between 250 to 275 Lacs.
c. We will only recommend you to buy 4 Marla commercial between 300 to 450 Lacs and 8 Marla between 600 to 800 Lacs in good areas
DHA Phase 9 Town
Residential plot in 9 Town are stable and we believe that they are at the lower end and have a potential of going up in near future. The commercial files are trading well at 280 to 290 Lacs. Balloting is not expected to happen in January as well so we may just see the prices flirting between 280 and 290 Lacs.
However in genuine terms we are not very fond of 9 town 4 Marla files because of its location and the number of plots. A genuine assessment of the price is 260 to 270 Lacs only before balloting.
Keep your eyes and ears open for
a. Balloting news about 9 Town commercial may push the prices up towards 325 to 350 Lacs .
Recommendation
a. Surely a buy for mid term trade and enjoy a million or more in one year on just an investment of 5.5 Million.
b. We did give a strong buy signal for the 9 Town files at 250 to 260 Lacs and we still believe that this is a safe price zone. However unless there is another availability of files in 9 Town we do not see it going rock bottom again. Buying at 275 TO 300 Lacs puts you at a risk of 2 million downside in comparison to 7 million upside so it is still a buy signal for us at any where between 250 to 300 Lacs.
DHA Phase 9 Prism
9 prism is our next big focus after Phase 8 as it is quickly becoming the focus of investor interest and is expected to be the best option for quick trades in January and later on in the year. The prices of 9 Prism are actually higher than what they should be so we do not see it gaining a lot in terms of price and we explained that earlier as well if you should buy or not to buy 9 Prism plots.
I am not really expecting prices to rise sharply, however 9 Prism will keep offering trading and investment opportunities and is the best option for short term traders. A definite trend has established now and that is why we are giving you a signal to get into short term trades only.
Keep your eyes and ears open for
a. Be careful of any steep price spikes as they will most likely reverse later this year.
Recommendation
a. Sell residential and Sell Commercial plots if the prices go higher than 15%.
B. We only recommend buying for short term & mid term trades in January.
DHA Phase 10
File price for 1 Kanal started from 62 Lacs and is now available for 57 Lacs. As more availability comes in the market the prices may go down in January.
Recommendation
a. It is better to wait a bit more before investing in Phase 10 files. The prices are going down as of now and i think best is to buy them if they reach 50 Lacs.
DHA Phase 11 Rahber
The commercial files are moving higher again and we will be careful to buy them unless for a long term investment.
Keep your eyes and ears open for
a. Balloting news may push the prices higher but seems unlikely that we will hear any such news this month.
Recommendation
a. We only recommend buying 4 Marla commercial at 190 to 200 Lacs for a long term investment.
b. The residential file is trading at 29 Lacs which is again not a very attractive price for investment.
USE OUR DISCUSSION FORUM AS WE CAN ANSWER IN DETAIL AND OTHER PEOPLE CAN ALSO POST THERE OPINION FOR A FRUITFUL DISCUSSION.
Captain (Retd) Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
Mob : +92 333 1717170 ( Whatsapp)
Skype : Shahnawaz.yaqub
Any Comments on Ex Air Avenue please ….
What do you want to know about it?
Will phase 8 be the ultimate living in DHA Lahore in near future?
Adeel
CEO/Founder
propertycentral
Dear Adeel,
DHA Phase 8 has a very central location and offers all the amenities to make it so. Broadway commercial also gives it an edge in terms of opportunities for commercial markets and as we have seen in the past that one of the biggest reason for the success of DHA Phase 3 is the commercial markets of Y and Z block.
I have no doubt that DHA Phase 8 will surpass DHA Phase 5 and 3 in a year or so.
Jazak Allah