MRA – September 2017 Pakistan Real Estate Analysis
Notice : MRA (Monthly Real Estate Analysis) – September 2017 Pakistan Real Estate Analysis 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 .
Our discussion forum is always open for real estate related questions and answers.
From August 2017 we will start a Monthly Real Estate Analysis of various societies and cities across Pakistan. We will only include areas where IMLAAK is operating and can assist you in buying or selling directly or through reliable partners in those areas. This may also include other societies in Lahore as well.
Following socities are included in this month analysis.
- Paragon City Lahore
- DHA Multan
- DHA Peshawar
- DHA Gujranwalla
- DHA Bahawalpur
- Sangar Gwadar
Paragon City Lahore
Paragon city Lahore is located next to DHA Phase 8 on Burki road and has a very prestigious location. If you are looking to buy a residential plot in a good price range and near to main hub of city than you surely should not miss out Paragon city. The prices are reasonably average and almost less than half the price of DHA Lahore. The reason for including Paragon is that it is one of the best locations as of today to build a house outside of DHA in limited budget. The prices of 5 Marla plot in Paragon is almost equal to that in DHA 9 Town Lahore. However 9 Town is still under developed and only a few houses are constructed. So if you are looking for some place which is developed as of now and has great approach and accessibility than do not miss out on Paragon. It will be a good investment as well as a reasonably good place to live.
DHA Multan prices have soared high before and after the balloting of installment files and seems like they have reached a top limit , the 1 Kanal file is trading at 50 to 52 Lacs and 10 Marla file at 32 to 34 Lacs. In comparison the installment files are available as well now and are trading on premium. In my personal opinion if you have the money you should buy a cash file instead of an installment file because the high premium has taken away the attraction from the installment files. Lets assume you purchase a 10 Marla file for 7 Lacs premium ( Presently exists ) plus 3.5 lacs down payment and 1.5 Lacs transfer fee etc , you end up paying approx 12 to 13 Lacs in the start. Cash price of 10 Marla file is 33 Lacs approx, so technically you are paying 8.5 Lacs extra just to avail paying 2.1 Million in 3 years installments. It is just like taking a loan from the bank and therefore in my opinion a premium of only 3 to 4 Lacs on average on residential plots should make them a worthwhile investment.
As for commercial files best ROI is in 8 Marla plots where you get to pay approximately 30 Million in installments with only 2. 8 Million premium , however they are hard to sell and in less demand than 4 Marla. 4 Marla commercial premium is approx 26 to 27 Lacs and a good place investment in general.
Lastly i think its good to invest in Multan installment files only if you wish to pay off the installments and keep them for more than 3 years. The premium prices are too high and i doubt they should come down any time soon. However as i always tell you that there is no need to try and run after it, if the come down it is worth an investment , if not than wait for them to come down and they will.
Balloting is coming, thankfully it wont bring the night king but a master plan of DHA Peshawar will surely be launched. In past two months DHA Peshawar has really not delivered as per promises and continued to delay the balloting date. Now it is expected that the balloting will be done in October but yes we are all disappointed on how things have turned up so far. Lot of clients are still waiting for there files and at imlaak we are only taking the bookings of file if you have the patience to wait. Also the prices have gone up because of DHA Peshawar strict control over the file prices and to some extent seems like a manipulation rather than genuine demand at this time. Price of 1 Kanal file at one window is 59 Lacs at this time but it still is worth buying as we expect the prices to soar above 70 lacs plus after the balloting. So it is a good short term investment and we suggest that you buy it and wait for balloting as it may be delayed for a month or two but we are pretty sure that it will happen this year and before December.
Price of 1 Kanal file has slipped down to 45 to 46 Lacs and it is in close competition with DHA Multan. The issues which have been haunting DHA Gujranwalla have been now resolved and we may hear some good news in near future very soon . Out of all the locations in DHA i do believe that DHA Gujranwalla has the maximum potential and i think a great investment as well considering that it is lacking behind. 10 Marla files are also now available at 30 to 32 Lacs price tag.
It is one of the underdogs when it comes to DHA but it is the only one so far with progress on ground. DHA bahawalpur has not been able to get a lot of attention from the investors in big cities and probably that is the reason it is still struggling with price. If you wish to hold for long term and you have a budget of less than 3 Million than this is the place for you, in addition if you are in Lahore than you can get it transferred in DHA Lahore office so it saves you from a lot of hassle. This month the prices will remain stable though.
Construction of houses in Sangar Phase 1 has started and that means a lot for this society. I believe that it is the strongest candidate for investment once it comes to Gwadar. Presently the over all market of Gwadar is slow, however it is part of the market cycle and things will eventually pick up. I think the prices will remain stable in this month and no major investment trend will be noticed.
To summarize we only see short term gains in DHA Peshawar only in this month. Medium term gains in Gujranwalla and long term gains in Bahwalpur, Multan and Sangar Gwadar.
Investment Consultant and CEO at Imlaak
Mob : +92 333 1717170 ( Whatsapp)