Price Trend DHA Lahore June 2018
Price Trend DHA Lahore June 2018 is a guideline to what the price movements have been the past month. As elections approach the market sees an ongoing trend in smaller investments. These investments are purely speculative. With the announcement of the budget we have witnessed a rise in the trade of relatively smaller plots priced under a crore.
Phase 5 continues to increase in prices as it gets more and more saturated. Residential one kanal options have seen an increase in prices in the past month. Relatively lesser ROI (return on investment) in comparison to other areas nonetheless, the prices have increased.
Phase 5 residential is still pretty solid when it comes to rental yield in commercials or building your own house. 1 Kanal houses on sale are relatively slower compared to its rival Phase 6 due to the high price differential. 10 marla houses are a quicker commodity in Phase 5.
Commercial prices continue to soar in CCA of Phase 5 near Penta Square. The prices in A, B and D block however, remain relatively stable and on the lower side.
Phase 5 M block has seen little trade in residential and commercial alike. Although the possession has been given there’s little or no movement as far as construction is concerned.
Phase 6 prices are increasing day by day. Residential or commercial the prices continue to increase. These plots are a far more stable commodity in terms of investment trade. The prices don’t dip down, the only way has been up. They tend to remain stagnant for a while but shoot up in a short span especially in commercial commodities.
Phase 6 also has the advantage of providing cheaper houses than Phase 5. With opening of the only second cinema in DHA in Phase 6 Raya, the demand might get higher with time in the nearby blocks. The reason for that is not only the cinema but the nearing completion DHA club in K block. Golf Course has already has its impact. The impact has worn down with time as the membership fee has increased to a whopping Rs 1,750,000 and it’s quite exclusive as non-members are not allowed to even use the restaurant.
Commercial overall in Phase 6 has increased in some areas. Especially MB 4 marla has seen a steep increase in price in the last few months. The reason for this increase is not artificial. If you are a regular reader you’d know that the first three lanes of Main Boulevard Commercial used to provide you with as high as 0.6% rental per month. It’s the price correction that has taken place which means it’ll be stable from hereon.
Phase 6 E-Extension has remained stable after the last rise in prices.
Overall Phase 6 is good for building a house for sale or personal use. Commercial investment is recommended in CCA 2, back of MB or front MB for rental yield.
Phase 7 is relatively stable. You can however, procure a plot at a good price in the lower blocks. The front blocks have been stable. Commercials have seen little or no trade volume in the past month. Files of 5 marla might turn out to be good buy if you can hold for 2-3 years. Ballot along with possession might be given in this time period.
Price trend in Phase 8 is different for different areas as it is subdivided geographically.
Phase 8 prices are more or less stable. The hype created a few months ago has died down. The prices haven’t dipped much. You are bound to procure a decent plot within a decent budget. New construction of houses and commercial plazas pop up every now and then. This means Phase 8 is on the right track and with time the prices are bound to increase.
To build your own house in Phase 8 is highly recommended at this point in time as the prices are still low. I’d recommend going for U and T blocks. W is relatively highly priced therefore, unless you are a fan I’d recommend saving a few rupees on the purchase. W block will continue to be favorite in times to come. Price difference between the lower blocks of W and T and upper blocks of U and V will narrow down in times to come. S block is recommended for people with low budget. It is not a bad block to invest or build your own house but I’d grade this as a last priority. Y block is recommended for people who want smaller plots of 5, 10 or 8 marla. X block still hasn’t been given possession therefore, I won’t recommend buying in X block.
Commercial plots are on the low. This means it is the ideal time to invest in Broadway. Second option would be either CCA 1 or CCA 2 as they are smaller markets in comparison. Broadway gives you a lot of options. Business Hub is nearing completion which means that the prices in D block with rise once completed. I’d recommend buying in B, A or D block as C is still the most expensive block. If you are looking to buy on main road the only option is B block as it is the only block which gives you a huge parking space in front which is missing from other blocks.
Ex-Park View has been stable in terms of residential plot. After the previous increase in prices of especially 2 kanal options the price now remained stable. 4 marla files are at their lowest right now and it is highly recommended to procure one and sit on it for a year or two. This file gives you the opportunity of short as well as long term trade. The prices of already established commercials hasn’t dipped right now but might dip as there is little or no trade in these commercials. 4 marla will be a hit with the community as there is no small option for grocery stores and small merchants who’ll be willing to rent it out.
Ex-Air Avenue plots have seen a slight increase in trade but only the possession plots. Commercials have been slow. People with low budget for 10 marla houses continue to procure in this area of DHA. It is recommended to either buy a plot for building a house for sale or personal use. This is a very cost effective option in DHA for a 10 marla house. 1 kanal on the other hand might not be that fruitful as people tend to go for used houses in other areas of DHA.
Phase 8 Z block or IVY Green has witnessed an increase in smaller plots. 10 marla and 1 kanal are stable with little or no trade. 4 and 8 marla commercials has witnessed a dip in prices. This might be a good time to buy and hold for possession in terms of trade.
Phase 9 has seen an increase in the trade volume of smaller 5 marla plots. This effect is due to the oncoming budget which is to be implemented from July onwards. 1 Kanal plots have seen a dip. I’d recommend buying a plot of 5 marla or 1 kanal in Phase 9 Prism and holding it until March.
The overall trade volume has increased. For people looking to construct you will have to wait a bit. Buying right now is the correct decision. There is an inherent risk the price might not move with increase in paid development charges but I still believe it’s worth taking the risk. Prism would go up and down several times until possession.
Phase 9 Town
Phase 9 Town has seen a rise in the prices in the past month. The prices continue to soar as more and more builders enter the small area for construction. Although there are a few houses in which residents reside, but this will increase very soon. This means that Phase 9 Town is still considered a relatively good investment. It is advisable to buy a plot in Phase 9 Town.
Commercials in Phase 9 town have improved especially CCA. It is advisable to buy a plot in CCA in order to construct a plaza in the near future once there are more people residing. E block has seen a very slight improvement in price. E block still is longer term investment. The area is almost clear, but we are uncertain to when the development will start despite various rumors.
Phase 10 is a good buy as of now. You have to hold for 4-5 years for good hefty returns. Ballot will take place once acquisition is complete. It’ll take a while before ballot but I believe in the next 2-3 years ballot can be expected.
Phase 11 Rahbar and Halloki gardens have seen a fair increase in prices. The prices will continue to grow for a while before being stable. It will give high returns in times to come. It is still advisable to buy a file of Rahbar Phase 2 extension. There will be a couple of opportunities to sell before and after the ballot immediately which I believe is a good trade.
Managing Partner Imlaak
MBA Finance (Cardiff, UK)
Assisted by: Saqib Hanif