Disclaimer Real Estate Market Analysis: 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 the Google store and read the latest news and developments or book an appointment for consultancy.
Real Estate Market Analysis
It has been a wonderful year for real estate so far. Prices kept on rising and real estate has been performing well beyond expectations. Since our Last MRA in March it has been showing a more stable growth instead of impulsive growth before that. Files all across the board have grown phenomenally as well and as expected now touching the peak.
The only major change has been the end of income source amnesty on 30th June 2021 and therefore a bit of change in the momentum of growth can also be observed after the budget.
Real Estate Market Analysis
These are the mature phases of DHA Lahore and although price has increased in these areas by at least 10% in last year, they are not areas you want to invest in but areas where you want to build your house or invest in rental properties.
Now that possession of apartments has been given, it is a great opportunity for all those looking for holiday homes in DHA Lahore. Commercial Mall was sold at a 6% rental guarantee in the 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 is expected to give you 100% capital gains in 5 years along with a 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.
The average price in phase 5 remains stable at 47 Million for 1 Kanal plot.
Real Estate Market Analysis
DHA Lahore Phase 6 average plot price has risen by more than 15 Million since June 2020. It has given great returns to anyone who has invested so far. The further potential of growth at this moment remains negligible.
Defence Raya, has been stable since it incurred huge gains in Feb 2021 and any further increase does not seem possible. Even if the prices stabilize now it is no more an investment opportunity. As per the price range, the rentals of 8 Marla complete plaza should at least be between 12 to 16 Lacs, or else it does not justify the higher price.
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 for rental income.
CCA 1 of Phase 6 is also suitable for rental income property but comes after MB commercial in my priority.
CCA 2 of Phase 6 is still a no-go area for me even for capital gains purposes. However, talks of Bedian road extension and an overhead bridge joining phase 6 with Phase 9 Town and eventually 9 prism are the talk of the town. This can certainly be an opportunity for short-term capital gains in CCA 2 if these rumors come to life.
a. You can safely invest/buy residential plots in DHA Lahore phase 6 for building your home or general investment.
b. You can buy commercials on Main MB for rentals income.
c. Stay away from Defence Raya Commercial for investment purposes.
d. You can think of investing in CCA 2 for capital gains.
Real Estate Market Analysis
Residential plots in DHA Lahore Phase 7 have performed outstandingly and the average price has risen by 12 Million since June 2020. Since March 2021 the price has increased by 2.3 Million approx at an average, standing presently at 26 Million. The momentum of growth is obviously slowing down and so is the investment potential. Our strategy is to wait for a correction now, unless you want to build a house then I do not see any harm.
Phase 7 DHA Lahore has shown a lot of house development in the recent past as the price of plots remains the lowest among all developed phases.
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 a 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.
Residential plots of DHA Lahore Phase 8 Proper have gained at least 12 to 17 Million as well. The same can not be said for plots in Ex Park View and Air Avenue. Z Ivy Green Phase 8 has also lagged behind other areas. This was expected as investors usually only concentrate in Phase 8 Proper. DHA Lahore Phase 8 proper surely is the strongest candidate for long-term performance as the prices are already matching up to that of Phase 6, it is expected to go even higher.
Broadway commercial One of the best commercial investments you can make today, from a long-term perspective. Price has increased by 30 to 40 Million in 8 Marla category and 10 to 15 Million in 4 Marla category. I still think Phase 8 Broadway commercial is value for money as it does offer a rental opportunity as well. This is the only A-class commercial left at these prices and should offer consistent capital gains and rental income in times to come.
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 marks 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 has lagged behind, even with possession news we haven’t seen much momentum. Considering that the price is still reasonable, it may be a good option in times to come as it will eventually try to fill in the gap.
a. We recommend buying residential plots for investment or house construction purposes.
b. Buy 4 Marla Shivpur or Malikpur files in Phase 8 Ex Park View at lower prices.
c. Buy 4 Marla commercials between 500 to 700 Lacs and 8 Marla between 1200 to 1400 Lacs in good areas of Broadway for rental purposes.
As expected Phase 9 Town has gained quite a lot in recent months. The price has gone up by 30% at least and further growth is now negligible.
9 Town E block development is almost complete and possession is expected soon. The price generally remains lower than other blocks of 9 Town and therefore I see that It has the potential to gain 10 to 20% on possession.
a. It is best suited if you want to build your house.
b. You can invest in E block of 9 Town for capital gains for a short to mid-term trade.
Prices in 9 Prism has gained at an average of 5 Million in 1 Kanal plot, which can account for an increase of at least 50% in some cases. The average plot price now stands at roughly 14 Million. However, plots in A, P, Q, etc have shown an increase of 10 to 12 Million per plot. 9 Prism like other areas will remain mostly stable with chances of correction.
a. This is a great time for an exit and you can re-enter on a correction.
Price has increased phenomenally recently and spiked to 92 to 93 Lacs. It was expected as the plot prices have increased all around in DHA. This is certainly not the time to invest further, it is much better to wait for a correction down to 60 to 65 lacs before making an entry.
a. It is better to wait for a correction.
DHA Rahber Phase 4 has shown an increase of 10 to 15% in the past 12 months. I do not see any major investment opportunity in Rahber anymore as there are better areas to focus on.
a. The residential plot as of now will you average returns in next few years.
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Good breakdown. You should do them more often.
Personally think DHA 10 files will come down to 70-80 lac range and ivy green will take a solid correction. Ivy green has a very weak location and kanal plots are already in stability range of 2-2.25 crore region which is not justified considering far off and isolated location from main DHA. For the same reason, you cannot expect house construction to be rapid there unlike proper DHA 6-9 phases.
I have never been a fan of phase 8 main broadway commercial. The location is too far off and not central enough. I understand it benefits from being closer to air avenue, ex park view and other phase 8 integrated societies but it is no comparison to CCA1 and 2 of phase 8 which have central locations and plenty of other commercial attractions nearby. CCA 1 and 2 still have room to grow and will give great rental incomes due to prime location. They will easily hit 10+ crore/4 marla valuation in years to come and in my view are comparable to MB Phase 6 commercials.
Also think phase 7 will show stability and snail-like price growth now. Major gains have dried up, only genuine buyer growth will be seen. If construction rate remains the way it has, I think average good location plot will hit 3.25 crore (from current 2.7-2.8 cr) next year. Don’t see chances of correction there due to impressive house construction and impending construction of parks, masjids and commercials.
I have always believed CCA 1 and CCA 2 of Phase 8 to be inflated for one major reason, both of them are off main road. They will never compare with MB, they just lack the demographics. It is a small area and easily manipulated by some big fish who invest there. When the end-users come in the bubble will burst.
Lastly plots are done for in my opinion offering very limited growth, the speculative cycle is over and all those keeping plots will just end up earning little to no money until the next speculative bubble.