Investment Analysis September, 2017
Investment Analysis article will discuss gains and losses in various areas of DHA Lahore from an investment standpoint. This should help you to make an informed decision where to buy and where to exit if you are holding a position.
Phase 5 is a mature market holding a plot will give you a lesser return in terms of investment whether residential or commercial. It is better to utilize your plot for construction or dispose it to consider other options which might give higher returns.
Phase 5 M block is an area which can give you good returns on investment at the time of possession. If you are holding on to a plot for construction DON’T. Phase 5 M block has a very weak infrastructure development and is viable for only those people for living who want a central location. For people who want easy access to ring road or have jobs or businesses in which commuting to and fro is of vital importance this should be ideal for them. The overall location is superior. From an investment standpoint it is a very good option as possession is nearing.
Phase 6 overall residential has increase a rise in prices altogether. Commercials are on a standstill right now. CCA 2 has seen a dip in prices because of the launch of Phase 9 town commercials. The price gap has closed somewhat which was expected. But once development starts in E block of 9 town it might be closed further. CCA 2 will see an increase in prices but upon its possession. MB prices remain stagnant in the first three lanes with little increase in prices. A jump has been witnessed in the 185/ numbers of MB which are also non-possession but they are on the main road in front of L block. The gap between the possession plots with the numbers ending in 185 is what has influenced the gap to close and given a rise to the prices. Weaker residential blocks such as N block hasn’t witnessed an increase in prices.
With the induction of more commercials of CCA 5 the prices of commercials are at a standstill. Residential plots however, have witnessed an increase but only in those blocks where population continues to grow such as R block, S block etc. The remaining prices of e.g. Y block, X block, U block are still the same. If you want to invest in Phase 7 it is recommended to buy a commercial file. From a residential standpoint I believe it is ideal to buy a two kanal plot as the prices are not that high. One kanal option should only be exercised in areas where construction is ongoing.
Phase 8 has seen a dip in prices of residential and commercial alike. But there are certain opportunities which can be exercised. You should highly consider buying a plot in Phase 8 residential or commercial as the prices are at their lowest. Procuring a possession plot in W block, U block, T block, V block would give good returns. Buying in Broadway would turn out to be lucrative, CCA 1 will also provide a good opportunity. CCA 2 8 marla is quite feasible as of now.
Buying a Park View file is one of the most lucrative opportunities DHA has to offer right now. With no four marla option which exists right now in Park View. I believe these files once balloted are going to be the hottest commodity up for grabs. Avail the first mover’s advantage buy a 4 marla file. Once balloted if your plot is not what you had hoped for you can always switch.
Phase 9 prices have been stagnant, as a matter of fact are on the lower side. I won’t consider investing in Phase 9 for a shorter time than 2-3 years. For two three years it might be an ideal investment. But for shorter term gains I don’t deem it lucrative. Sell if you have a plot in Phase 9 and don’t want to hold it for a longer period. In Prism it’s only viable if you want to hold for a longer period otherwise I don’t deem it a fit investment.
Phase 9 town
Phase 9 town has seen a rise in the number of houses being built. It is viable to buy in 9 Town as of now. The prices will definitely go up as more and more builders are focusing on 9 town. Commercials are also very viable as the price gap between CCA 2 of Phase 6 and 9 town is still big enough for encashment.
Phase XI (Rahbar)
Files of Rahbar Phase 2 extension will be balloted soon enough. It is advisable to procure a residential or a commercial file. Buying a plot in Rahbar Phase 1 or 2 is also advisable because of the southern loop of ring road which is nearing completion. I believe they’ll ballot it before December, 2017.
MBA Finance (Cardiff University, UK)
Managing Director at Imlaak
For guidance contact (+92) 03208484630