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MRA – July 2020 DHA Lahore Property Market

MRA – July 2020 DHA Lahore Property Market

MRA – July 2020 DHA Lahore Property Market

Disclaimer : MRA (Monthly Real Estate Analysis) – March 2019 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.

Present Market Condition

We told you almost 2 and a half months earlier that the prices may rise in our post about impact of relief package on real estate prices published on 14th April 2020. Actually things got more reinforced after the budget, specially for the plot sector. The 20-21 budget gave relief to real estate sector by not imposing any extra taxes and by reducing the capital gains period to 4 years with a 25% slash on capital gains tax every year, reducing it to only 25% in 4th year and zero after that. In addition transfers cost has been cut to half almost.

In addition to all of these real estate friendly policies by the Govt, the bank interest rates are coming down big time. This is one of the main factors behind the upwards real estate move.

This has boosted the investor confidence and therefore we can see very positive activity in the real estate sector. The real estate offices are also open and things are going back to normal.

However presently this activity is limited to Phase 6, 7 and 8, however it will have a residual impact on even non possession area. Though not as much as possession areas but we will see prices stabilizing there as well.  We are already seeing investors jumping in on the opportunity and prices in Phase 6, 7 and 8 is already 1 to 3 Million higher than it was in April.

DHA Phase 1 to 5

Phase 1 to 5 are fully developed and mature areas of DHA Lahore. As the market moves out of negativity, it will have a positive impact on these areas as well. Although investors may not be interested in this area as such, it will still enjoy stability and positivity in the coming month.

Commercial investments with an option of rental returns seems to be the best investment in these areas. Investing in residential plots is probably not suiteable as you should concentrate on other areas such.

Investment opportunity still exists in Gold Crest Mall apartments as we believe that the prices still haven’t peaked. The prices will remain stable here at 20000 per sqft for some time. This is more applicable after the Government announcement of relief to construction industry.

Phase 5 M block has remained stable. The commercials however, can be a good investment from a future perspective as they are at their lowest.

DHA Phase 6

DHA Lahore Phase 6 has already moved in to positive territory and prices are going to rise. The general positivity in the real estate sector is going to help out Phase 6 to gain more in July and coming months.

Contrary to previous belief commercial investments are going to be stable as well. In addition floor wise selling will create liquidity and increase commercial transactions in the market.

MB commercials provide the best rental income percentage in DHA Lahore among all other commercial areas. With real estate performing well tenancy issues stand null and void as well. As more than 80% rentals in MB commercials are related to real estate activity. This also makes it a safer rental commercial while retail commercial areas still suffer due to closures etc.

Recommendation

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.

DHA Phase 7

DHA Lahore Phase 7 offers possession plots with the lowest price tag for a 1 kanal (500 yds/4500 sqft) in DHA Lahore. Relief package coupled with a real estate friendly budget has made it a hot spot of short to mid term investments. Although I do not see this rally to impact long term stats of Phase 7, it still is a good investment for a year or so. In July we will see that the plots will gain a Million or so further.

If you have been stuck on Phase 7 for a long time, July and August may be good months to take an exit.

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.

Recommendation

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.

DHA Phase 8

The safest bet is DHA Lahore Phase 8 proper. It fills the bill with all it has to offer for investment vis-a-viz house construction. No matter what you are planning it is suiteable for you. It has good potentials to gain further momentum in July and  will sail through this bad time.  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, and the prices are very low, the reason for that is the general overall low trend plus the lack of occupancy of residential plots. Commercials are dependent on the residential occupancy from a rental standpoint primarily. Many companies and banks however, have either made their offices or have procured a plot for future purposes.

Ex Park view of Phase 8 is a very good option for residential buyers especially for 2 kanal buyers. The prices are lower. You also tend to find a bargain. Generally a 2 kanal plot would cost you around 4-5 crores which is a pretty decent price tag.

4 Marla commercial files of Ex Park View The prices are at bottom and there are strong rumors of ballot. Putting aside the rumors which we get to hear every now and then, I believe it is a strong buy owing to its location and price.

Z Ivy green is not some place you would want to go in these times of uncertainty.

Recommendation

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.

c. We will now recommend you to buy 4 Marla commercial between 400 to 500 Lacs and 8 Marla between 700 to 950 Lacs in good areas of Broadway.

d. It is better to avoid Z ivy green as it is still an under developed area and in general we do not want you to invest in such places.

DHA Phase 9 Town

9 Town has remain neglected in June by investors who focused on Phase 7 and 8 mainly. However that could change in next month as the prices are pretty low in 9 Town and are ripe for investment as well.

I believe it has a potential to gain a Million or so easily in the coming months.

Recommendation

a. It is best suited if you want to build your house or buy one on installments such as imlaak homes. However now investment is also a good option in the coming days as it can easily gain a million or more.

DHA Phase 9 Prism

The positive impact on possession areas in DHA Lahore may also strengthen sales in 9 Prism. However it is best to stay clear of under developed areas and files as they wont perform very well in short or mid term. However if you are looking at long term gains it surely is a good investment.

Recommendation

a. Hold it for long-term or sell during an upswing.

b. Buying is recommended only long-term investment of 5 years and more.

DHA Phase 10

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.

 Recommendation

a. It is better to wait for a while.

DHA Phase 11 Rahber

The prices in Phase 2 ext or DHA Rahber sector 4 which has balloted in 2019. Although a non possession area but the prices are pretty low, making it an attractive investment for next 2 to 3 years time frame.

Recommendation

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.

USE OUR DISCUSSION FORUM  IF YOU HAVE A QUESTION AS WE CAN ANSWER IN DETAIL AND OTHER MEMBERS CAN ALSO POST THERE OPINION FOR A FRUITFUL DISCUSSION.

 

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