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Jameel Ch. 
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Sunday, October 8, 2017 02:18 AM PST  Reply: >

Prism Dying!!!
Sold my plot in Prism for 20 Lakhs less then the last year. Prices are drastically coming down and market is now flooded with the plots at Prism. Dealer Mafia is showing false dreams to the buyers that prices are going up every month, it would hand over in next 3 years. All BullShitt!!!
I bet, Prison would never be ready in next 10 years!

M Zahid® replied on Sunday, October 8, 2017 02:58 AM PST 

Yes prism is in India and possession will never be given.
Although main roads are near completion and work in all blocks going. Yes being located in India possession will not be given. I bought couple of decent plots under 70 and now no plot in prism is for 70 but still I have to abuse prism and dha.

Rock replied on Sunday, October 8, 2017 05:25 AM PST 

Well said Mr Zahid !!
These people are actually trying to lower prices to buy cheaper 😄
I bought 2 commercials in 2015 and 2016 at great locations Zone 1 8 Marla and ooval complex outer
Alhumdullilah great gains already and looking in future stable investment as well

Riaz 44 replied on Sunday, October 8, 2017 10:26 AM PST 

Property investment is in slump and everywhere the prices are going down. It's same with prism. Even after the possession in phase 8 prices have gone down from 20lac to 30Lac per kanal so even a rapid development in prism will not change anything unless the market is bullish. Remember the supply in practically unlimited in prism.
As far as making huge profits in Prism is concerned it's correct that people have made millions from it but now it's the correction time.

Riaz 44 replied on Sunday, October 8, 2017 10:29 AM PST 

Prism is not dying... just the correction time.

H78 replied on Sunday, October 8, 2017 12:16 PM PST 

I understand market slow but prices still high not coming down
Trying to buy in phase 6 and prices are actually higher compared to 6 months ago

Habib replied on Sunday, October 8, 2017 12:39 PM PST 

Prices quoted by Dealers are still high, Yes I agree that supply is unlimited but Plots are in Hand of tertiary market [Though not still with end users] off loading at very low prices is not expected. The Only thing which can change the game is Pak Rupee. I hope it will not fall but if it happens there can be more fall.
Yes it is Correct you need another 6 years to reach phase 7,8 Level of development and hand over. But what next? these plots still need demand or it will be sold as today DHA 9 Town. It is ready for Building and Located in Prime location of Prism.
Stagnant Price of DHA Town is Beyond my understanding, How I can Convince Myself to buy a plot in prism in 1.5 Cror when nearly 3 Plots of 5 merla can be owned in that price which is always good for investment and price gain.

M Zahid® replied on Sunday, October 8, 2017 02:09 PM PST 

Habib sb!
Disagree that depreciation of rupee will cause a further fall. Rupee is under immense pressure and will go down around 10%. When this will happen; no one knows other than Dar sb. This will make reality market more attractive to overseas. what you can buy now for $100 will be available in $90.

I have no inside information but based on assessment of progress, i think possession will be given in 2020. I recently posted a fresh satellite picture where you can see work progressing in all blocks. Prism market is based on development speed. To illustrate my point further; assume that dha complete all development work in one year and handover possession. Do you think price will be despite of slow market; No. Similarly if development slow down, dha contractors only work in few block with slow pace, people develop the feeling that it really will take 7 or 8 years then prices will stagnate.

saleem replied on Sunday, October 8, 2017 03:36 PM PST 

I will fore sure agree with habib sb. prism market is getting stangant with day by day and if not great but losing a bit. this is obvious no property will remain stangant for much longer period it will starts losing its value gradually. Prism would not be ready for another 5 years thats reality one say anything will just build castles in air. Even 25% of any block is not yet completed and prism consists of around 15 sectors. long way to go. we all know there is over supply of plots in market and yet very few buyers therefore we all can forecast the market.
phase 6 seems to be very good investment because it will be now gaining in future. second PHASE 9 town would be much more attractive investment as posssession is there and still low price. in coming 2-3 years it will have much more houses and investment.

saleem replied on Sunday, October 8, 2017 03:42 PM PST 

Yes secondly dha town will be connecting prism upper blocks A,C and Q therefore much better investment than prism for coming 3 years.

Habib replied on Sunday, October 8, 2017 04:24 PM PST 

@ Zahid If Rupee starts Slipping down then overseas investors will not jump rather will wait and see, I am Commenting based on experience. This happened in 2010 when Rupee Started Sliding Down in Zardari Period [ In Musharraf Time also we saw very stable Pak rupee as we saw in Nawaz Sharif era]
But again Currency Value and other parameters are secondary factors. The Main thing is when Next Cyclic Boom will start, no matter Phase 9 or Phase 7 or 8 all will shoot up.
Unfortunately I am not seeing it in near Future.

M Zahid® replied on Sunday, October 8, 2017 04:56 PM PST 

@ Habib Rupees was artificial propped in MS time and as soon as this support was removed USD soared from 60 to 85, in Zardari time. Now current finance minister have done the same as was in MS time. Before going for 6th IMF Programme in APRIL devaluation will be done as precondition unless IMF programme can be avoided.

Next reality boom!
Yes CPEC is a factor which will have positive impact on economy and energy profile will improve our exports. This will start to show up in next 2 to 3 years. But major contributor to reality sector are inflows from remittances which are bad strained due to middle eastern turmoil. Oil crash, wars and interstate feuds are heavily impacting our footprint of overseas diaspora. There is no immediate improvement visible on the horizon for the said issues. Resultantly, demand in the Middle East for Pakistani labour is not heading south in near future to improve our remittances. The drivers for under development reality projects would be pace of development and for newly completed areas speed of house building and commercial activity. Remaining areas will remain stagnate or inching up at snail pace.

MBS® replied on Sunday, October 8, 2017 06:25 PM PST 

Carving out the dirt roads and providing possession with electric and utilities is a different thing. Recall phase 8 development, from dirt roads to possession.

Compare the size and time period it took to give possession.

While progress in Prism is very good, relating only development speed to price appreciation is not the complete equation... for instance. there are many more competitive options which didn't exist few years back like law and order in Karachi and Peshawar, Bahria Karachi, DHA Multan, Peshawar, Bahwalpur, Gujranwala etc which have attracted quite a fair share of investors.

I don't think that prices in DHA lahore overall or anywhere else will repeat historical trend of aggressive gains in a matter of months/years, but will more likely remain realistic and competitive.

Crossing the 20 Million mark in 3 years will be a real milestone for Prism.

Muhammad Asif® replied on Sunday, October 8, 2017 07:26 PM PST 

Nothing to do with the prism alone, market is in correction mode and non-developed areas will get more hit. Worse is coming in 2018.

Nabeel® replied on Sunday, October 8, 2017 08:45 PM PST 

It is true that:

- If you are trying to sell in Prism market now, expect at least 20 lakh less than dealer-quoted prices. If you try to sell at dealer-quoted price, you will never be able to sell.

- Devaluation of rupee in reality means a decrease in the value of
your property - IF prices don't rise at same time, which is what is expected : Prices will not rise if devaluation happens in next 1-2 years. So it amounts to a further loss in the value of your property.

Awan replied on Sunday, October 8, 2017 09:39 PM PST 

@Nabeel sorry to say brother but you have just broke the legs of basic economics concept. And also all those who are co-relating devaluation of paper currency with property value. Paper currency has no intrinsic(real) value but it has extrinsic value while property(in any form) bears intrinsic value. So in real terms if paper currency depriciates the property OR any other tangible assest(having real internal value)apriciates in real terms.
So if pak rupees devalution occurs it will positively impact properties in any form.

Awan replied on Sunday, October 8, 2017 09:40 PM PST 

Broken*

Farid Mirza replied on Sunday, October 8, 2017 10:06 PM PST 

Dear All,
It is simply Supply and Demand Issues. No matter Prism development is going good but there are so many option available in Lahore City that the only good option of DHA is no more an attractive sales slogan. Daily I pass through DHA Phase-8 and see hundreds of ready to build plots but there is seldom any real construction work start. Supply is too high and demand is less. Also there are many reasonable societies around DHA and in Lahore where people can find good living style with reasonable prices. DHA has gone too big and many wealthy people also do not find it attractive to live when they have options like Bahria, Dream Gardens, etc.. If DHA needs to be more atttractive then some out of the box thinking is needed for people to commute and entertain themselves. Look at all commercial areas of DHA. From Phase-1 to Phase-5 there is monotony of restaurants and designer stores nothing else. Security is also not as good as in new gated societies. So Higher middle class and many higher class people now prefer living in those societies.
Bottom line is that DHA is no more as posh and as attractive as it used to be. Something on DHA administration part is required to be done otherwise DHA-Lahore will soon like some other societies.

Salman replied on Sunday, October 8, 2017 10:12 PM PST 

The Lahore market will not go up due to the fact that DHA has killed the market with over supplied plots, and secondly the GT road clients and South Punjab clients have been stopped in Gujranwala, Bahawalpur & Multan.
Third, there is no charm left in one kanal plot (for example) due to heavily development charges. As a buyer of one kanal plot we have to pay in three years approximately 2.5million to DHA Lahore in terms of development charges, transfer and stamp duty fee. In the three years plot price will not go up more than 4 million, so at the end only DHA is making money and nothing left for the buyer unless he hold the plot for ten years.

Khurram11® replied on Monday, October 9, 2017 04:19 AM PST 

Dear all,

Why is it so hard to understand the economics of PKR devaluation? It's going to happen. It will negatively impact the existing investors whose investment value in $ will reduce. However it will greatly benefit the potential market as the property prices will become cheaper for foreign investors who will buy more that will improve property market current slump in transactiom volumes.

It is just like the impact on Gold. When PKR depreciates, the existing investors loses a little however it becomea cheaper in real value to the entire market so they buy more that also shoots up gold prices.

So all in all depreciation would be good for potential investors of real estate, gold and FX investors while the ones who really loses out are the ones who have invested their wealth in fixed income deposits, PLS saving schemes, basically those who are invested in interest based PKR investments.

Nabeel® replied on Monday, October 9, 2017 04:25 PM PST 

For brother Awan:

Sorry sir, but economics doesn't work that way. You are saying that if paper VALUE decreases, then tangible asset VALUE increases. There is no such correlation.

In practice, upon devaluation, asset PRICES (not VALUE) increase to cover up the loss in worth of the currency.

However, the current real estate market is such that prices cannot increase, hence if prices remain constant, then devaluation of rupee will have a net negative impact.

Let me illustrate by an example: If rupee is devalued by 10%, then market should react and property prices should rise by 10% . This would ideally make the VALUE of the property still the same in real terms. Means if plot of 1 crore should rise to 1 crore and 10 lakhs, then existing investors will not lose anything. Their purchasing power would remain the same.

In current market scenario, real estate prices are in stagnation and will not arise upon devaluation. Hence a 1 crore plot, if remains a 1 crore plot after devaluation of rupee by 10%, means the plot has lost its value by 10% in real terms.

Hence existing holders lose, new foreign investors may make money if prices remain the same, as they will get more rupees for their foreign exchange.

Muhammad Asif® replied on Monday, October 9, 2017 04:44 PM PST 

Yes theoretically it is the way how depreciation works, investment/ product become cheaper for new buyer who starts buying and eventually price come to the same level in rupee in real terms(from 100 to 110 in case of 10% depreciation) so no loss to previous holders as well. But this works assuming all other relevant factors constant.
But this time is different, potential buyers are already in very weak position due to middle east financial situation. Country's political situation is another factor which will also contribute to recession.
On top of all country's financial position is not good at all, the heat we will start feeling after few months.
We also dont have enough genuine buyers (buyer to construct home) for the supply of plots we have, not at least at current prices.
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