DHA Peshawar Balloting Price Report & Future Analysis

It is almost more than one month since DHA Peshawar balloting was held on 25th Dec 2017. The balloting brings huge future perspectives for investors of DHA Peshawar. It is the first DHA in any new city after a long wait of few decades and people have a lot of expectations from it in the coming years. In DHA Peshawar balloting report we will cover how do we see the prices trending post balloting and what are the time lines to follow for short, medium and long term investment opportunities in DHA Peshawar .

Few of the things you need to know are:

• The master plan has only been revealed for 3 blocks only namely A, B and C.
• Commercial plots and plans have not been revealed.
• Another mini ballot will be held and master plan of remaining blocks will be revealed soon.
• DHA Peshawar plans to complete the development of A, B and C blocks in next 15 months.
• Development charges have been announced and will be paid in quarterly installments of 3 years for a total amount of 2250000/– PKR.

This has left a lot of unanswered questions and caused a bit of uncertainty in the market. However this is not going to last much longer as mini balloting will be coming soon and commercial plans will be announced as well in 2018.

So with all this in mind where do you see DHA Peshawar market in next few years or so ?

The answer is obvious it is going to grow but it will not happen overnight. If you are following us we have clearly given two strategies to plan an exit, taking max profit on our DHA Peshawar Page and in this article we will shed more light on time lines and profit ratios in years to come.

If you purchased a file in 50 to 51 Lacs before DHA Peshawar Balloting, we did suggest that a good trade would be to sell it before balloting at  to 57 Lacs and pocketing some 4 to 5 lacs. However if you have not sold it before DHA Peshawar balloting on 25th Dec 207 than  itwould be wiser to wait for an year or so.

Presently the market has responded positively to the balloting but the growth has not been phenomenal, even from our perspective. I believed that it will grow at least 10 Lacs from its pre balloting price. This turned out to be partially correct as only corner plots in Peshawar DHA have reached this prices and although no one is willing to sell below 65 Lacs in A block , there are not a lot of buyers in the market.

Similarly plots in other blocks have gained much less and even after balloting the prices are not as high as one would have expected. This is not a new phenomenon in real estate investment and if you remain updated with market you should know that prices usually slump right after balloting or possession as supply is surplus and investors are looking for an exit.

In addition an incomplete map of DHA Peshawar has a role to play in the present market condition as well and i believe that in a few months we will see the prices of those sectors improving further when the map is revealed.

So if you have invested in DHA Peshawar and you are worried that it has not grown as expected than the first thing you need to do is stop worrying and read our recommendations below.

Recommendations

• If you have a plot in any other block than A, B and C , hold it till the complete master plan is revealed , hopefully in 1 to 2 months.
• If you have a plot in A, B and C and is not a premium location plot , i will suggest that you sell it now and add a few lacs and buy a better plot.
• If you have a plot in A, B and C and is a premium or at a good location than  hold it and wait for at least 6 months, better is to hold for an year though. The reason for this approach is that in 6 months to one year when the local people will see the development, genuine demand will come into play.
• If you still want to hold it further, i will suggest that best is to take an exit a few months before possession. Do not wait for possession because if you do than you will have to wait for the next investment cycle which is likely to begin after 3 to 5 years.
• If you are a long term investor than you can have two strategies, either wait for 4 to 5 years and take an exit or wait for 10 years and exit when fully matured.

Expected prices of DHA Peshawar with timeline are as under and we will only talk about plots in A, B and C block

• 1 to 1.5 years 90 to 120 Lacs
• 3 to 5 years 150 to 200 Lacs
• 8 to 10 years 350 to 450 Lacs

If you look at the above timelines, during the 1 to 1.5 years timeline and 3 to 5 years timeline you have to pay partial development charges and complete development charges respectively. If we consider an average plot price of 60 lacs today than you will have to add 22 lacs approximately as capital so your total investment will also increase to 80 to 82.5 Lacs.

So what you should do is up to you but if you really want to make money than best is to sell it out before 1 year when price reaches your target and invest some where else.  You can best utilize your money by making use of the timeline and reinvest when you see the next cycle of uptrend setting in. Meanwhile we can find you some other place where you can earn some profits and return to DHA Peshawar in 3 years to enjoy the second uptrend and so on.

Captain (Retd) Shahnawaz Yaqub Bhatti

Investment Consultant and CEO at Imlaak

Mob : +92 333 1717170 ( Whatsapp)