Disclaimer : MRA (Monthly Real Estate Analysis) – March 2021 DHA Lahore 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 now download our APP from Google store and read latest news and developments or book an appointment for consultancy.
The extension of real estate relief package has given relief to the real estate sector. In the aftermath, prices have risen back upto 10% in certain areas such as DHA Lahore Phase 7 and other areas are also not far behind. Phase 8 and Phase 6 are closely following Phase 7 with 40 to 45% increase in prices since June 2020. Possession plots have taken a lead over non-possession areas this time around.
There are also rumors of Phase 9 Prism possession in selective blocks in coming months. These rumors have been the main reason for prices going higher in 9 Prism.
The market is clearly in an upcycle and will continue trending upwards after corrections. However we must watch the market carefully for any Goverment policies, such as construction relief scheme which ends in June 2021. In addition there are other factors such as policies regarding FATF and taxes in the 21-22 budget which may put an end to this uptrend.
Comemrcials so far have not gained much and only showed a 10 to 20% increase. This is not likely to change any time soon as residential plots remain the choice of investment for many owing to there low price brackets.
If you are looking for investments in plots than these Phases do not offer much. Commercial investments with an option of rental returns seems to be the best investment in these areas.
Investment opportunity exists in Goldcrest Mall commercials and apartments. Commercial Mall was sold at a 6% rental guarantee in 2nd half of 2020 and now some options are available on resale. As of today it is the best rental option available in DHA Lahore and expected to give you a 100% capital gains in 5 years along with more than 50% increase in rentals over the same time period.
Now that the Mall is functional and expected partial possession of apartments is expected shortly. We will see solid growth in the prices of these apartments lifting them anywhere between 22000 to 24000 per sqft.
Phase 5 M block will remain stable.
DHA Lahore Phase 6 is prone to any major correction as such, however we may see reduced trading activity.
The surprise last month was Defence Raya, where the premium almost doubled in a few days. I see it as a clear sign of market manipulation by the big fish and it is best to stay away. Even if the prices stabilize now it is no more an investment opportunity as we have yet to see the rental potential of this area.
MB commercials provide the best rental income percentage in DHA Lahore among all other commercial areas. In my opinion if you have the resources this is the best investment in DHA Lahore as of now.
a. You can safely invest/buy residential plots in DHA Lahore phase 6 for building your home or general investment.
b. You can buy commercial on Main MB for rentals income.
c. Stay away from Defence Raya Commercial.
Residential plots in DHA Lahore Phase 7 have performed outstandingly and risen by 45 to 50% since June 2020. Hoping that it will give another substantial increase is quite frankly impossible. Our strategy is to wait for a correction now. Unless you want to build a house urgently than I do not see any harm.
Although I am not a big fan of commercials in Phase 7, it does not change the fact that they are at their lowest. If you are willing to be patient it could be considered as a decent option for rental generation.
a. It is a good option for short selling and for the purpose of making your own house.
b. Long term holding of a commercial plot for future rentals may work for some people.
Real Estate Analysis Residential plots of DHA Lahore Phase 8 Proper have also gained upto 40%. In my opinion it was and still is a safer bet as I expect it to be more stable than Phase 7 going into the future. Even if you are not looking for short term gains, Phase 8 proper surely is the strongest candidate for long term performance
Broadway commercial One of the best commercial investments you can make today, in long term perspective. Price here has increased by 20% since June 2020. I see broadway as a stable commercial zone which will slowly add capital gains along with a consistent rental income. Construction of Malls in various phases of DHA Lahore may be one of the reasons we are seeing lower growth in certain commercials including Broadway commercial.
Ex Park view of Phase 8 is a very good option for residential buyers especially for 2 kanal category.
4 Marla commercial files of Ex Park View The file is trading around 25 Million mark for some time and balloting rumors are in the air. It is best to wait and invest in it at lower prices.
Z Ivy green is not some place you would want to go in these times of uncertainty.
a. We recommend to buy residential plots for investment or house construction purpose .
b. Buy 4 Marla Shivpur or Malikpur files in Phase 8 Ex Park View at lower prices.
c. Buy 4 Marla commercial between 400 to 500 Lacs and 8 Marla between 800 to 1000 Lacs in good areas of Broadway for rental prupose.
9 Town has recently seen some traction in February of 2020 and it seems it may perform better going into March and April. I expect a 10 to 20% increase at the maximun in coing months.
a. It is best suited if you want to build your house.
Prices in 9 Prism has gained some where like 30 to 40% depending on the location. Anyways the upward trend in Phase 9 Prism is not related to the amnesty. This may well last for some time even after the end of amnesty.
DHA has not announced any news so far and even our on ground survey suggests that it is not ready for possession in such short time. I will be posting a development video update of 9 Prism shortly as well.
a. This is a great time for an exit and you can re-enter on a correction.
A no go area for now, its best to invest in developed areas of DHA Lahore. However if you have a long term objective of 7 to 10 years than you can look into it.
a. It is better to wait for a while.
Real Estate Analysis
The prices in Phase 2 ext or DHA Rahber sector 4 which has balloted in 2019 are still quite attractive for investments. Although a non possession area, however low prices make it an attractive investment for next 2 to 3 years time frame.
a. The residential plot as of now can also give a very good return in 2 to 3 years time if we buy at lower prices.
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Captain (Retd) Shahnawaz Yaqub Bhatti
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Captain Sb, I agree mostly with your points. However, I believe Phase 7 will continue to rise considerably. I say so because most owners looking to build house for living (in near future) will buy there since it is decently populated and right next to Phase 6 but much cheaper.
Also on Phase 9 Prism, I believe markets will dip and rise continuously until possession arrives (6 months for certain blocks I guess) because it is a volatile in terms of trading, but in the long run Phase 9 Prism is the most attractive option. I say so because it has impeccable location and town planning. I believe Prism prices will cross Phase 6 and 7 due to its great location and access.
Anyways, good advice, love reading your analysis.