Lahore Real Estate Forum

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Tuesday, September 14, 2021 09:50 PM PST 
Future of Phase 9 Prism Commercial 4m

Dear CMY Sb and all experts here, Aoa,

Please shed some light on dha phase 9 commercial 4 marla files. Is it a good investment to do? Current rate is 330 where do you see this going in coming 2-3 years? Is it a good investment or risky one?

Thanks.

Opinion replied on Tuesday, September 14, 2021 11:57 PM PST 

Best investment of all times. Minimum plot in prism is 4.5 crore. Good is 6 and best 7 crore. But today file is not available less than 340 in market

Amjad replied on Wednesday, September 15, 2021 12:01 AM PST 

Commercial gains are un-matched. Today prism kanal allocation is at 175. Compare it with 4 marla comm file. Commercial file still very lucrative

alpha replied on Wednesday, September 15, 2021 12:42 AM PST 

Opinion sb/sahiba and Amjad sb. When can I construct a shiny plaza on the 330 lakh 4 marla file plaza, rent it and retire ?

Arhum Arhum replied on Wednesday, September 15, 2021 12:48 AM PST 

Commercial files of prism are very attractive however there is no availability in market usually. Commercials are always much better than investing in residential because buying a commercial plot/file is like purchasing a stock. A stock will give you dividend as well as capital gains over time and same goes for commercials, capital gains+rental income when you build it. But totally against holding commercials long term and using it for rental income because return on invesment is very low and not as good as plot trading. Once you feel commercial value is close to maxing, exit.

Issue of course is commercials are much more expensive so most investors get priced out. Prism commercial file is good opportunity, no doubt if you can get hold of the files.

Opinion replied on Wednesday, September 15, 2021 01:07 AM PST 

@alpha, sonay 330 lac main itnay mazay? Plaza banana hai tou phase 6 main 15 crore kharcho and enjoy karo

alpha replied on Wednesday, September 15, 2021 02:01 AM PST 

I am not sure phase 6 commercials at 15 crore. If they are, I do not understand the valuation. If they reap a rent of 5 lakh a month, it would take about 30 to 40 years just to breakeven. There are better investments.
For phase 9, the break even period might be longer. With the advent of malls and online shopping, who would need to rent a 4 marla commercial ?

Arhum Arhum replied on Wednesday, September 15, 2021 02:46 AM PST 

Indeed Alpha that is exactly my point. Phase 6 MB commercials are actually priced around 15 crore so makes no sense to use them for only rental income purposes because annual rental return is so low (around 5% on investment).

Which is why buy commercials at cheap rate, when you get possession, build them and put rent them out. Wait for good enough capital gains to be made, then exit and move onto next phase. With this scenario you get capital gains+rental income for some while. For example you buy a phase 9 prism commercial file today, hold till possession, when possession arrives and you think it will still make reasonable capital gains, then construct on the plot, rent out the building. Collect rent+cash out when you feel capital gains targets have been reached (lets say it hits 12 crore valuation).

Investor replied on Wednesday, September 15, 2021 12:47 PM PST 

Dha main jo milta hai pakar lo bhai prices tou barh he jani hain

SC replied on Wednesday, September 15, 2021 01:10 PM PST 

I have major issues with Prism commercial locations which are yet to be balloted.

Majority of them are in litigation areas (K block commercial in litigation area near Roohi Naala, F block commercial on Darbar location near ring road, H block commercial on top of Yohanabad etc.)

So forget about ballot and constructing a plaza anytime soon!!!

alpha replied on Wednesday, September 15, 2021 01:32 PM PST 

When will one be able to construct a plaza on a 4 marla commercial file? How long will it take to ballot and get a possession? I am not an expert on commercial property and have little knowledge of dynamics of 4 marla commercial in average to poor locations. I fail to comprehend good rental income from average to poor locations from a 4 marla tower. I need some education here ( in a non-condescending way Opinion). Please do not give examples of Y block market or Phase 6 MB. Their location justifies their economics ( rental demand, foot fall etc. ).

Business man replied on Thursday, September 16, 2021 01:19 PM PST 

All over the world businesses are at a sharp decline due to COVID-19. In pakistan the inflation and a sharp decline in valuation of Rupee has decreased the purchasing power of masses and resultantly business are at sharp decline. In other posh societies of the city like Valancia, Wapda Town etc. only banks are providing good rent and a lot of commercial properties are available for rent but there are no one to afford such high rent. In 3rd world countries where literacy rate is low online business were expected to come in the market after 5 to 10 years but COVID - 19 has dubbled the speed of on line businesses and these businesses have started capturing the market.

It is difficult to afford such high rents today so after more increase in the commercial property prices and subsequently rent will compel the business community to go for on line businesses.

Thinker replied on Thursday, September 16, 2021 02:20 PM PST 

Investing in commercial now is a very bad idea. The rental income will be too low, and if rents are low then prices cannot be high in the long run. Buying a 15 crore plaza and getting a rent of 3.5 lak per month in phase 6 is a bad investment. I also agree that online shopping has taken off and people buy almost half of their stuff online, specially where brands are involved as you get the same thing, without driving, parking, hot weather issues. It will be very difficult for stores to stay competitive while paying rent, electricity, salaries, maintenance etc with online businesses selling the same thing like mini minor, generation, ethnic, bata, service etc. commercial will be used mostly by banks, offices etc. Also with malls where you get everything in one place and they are air conditioned, why would anyone go for shopping in 4 marla plazas with lifts and stairs.

Hard thinker replied on Thursday, September 16, 2021 03:57 PM PST 

Es hisaab se tou phase kay tamam plazay ab tak vacant honay chaiye thay phir? But happening otherwise wahan mil kuch nahe raha

alpha replied on Thursday, September 16, 2021 04:04 PM PST 

I was looking for some commercial real estate a year and half ago. There were ample opportunities in Phase 1 to 4. Lots of vacant floors in 4 marla plazas. Things might have changed now as per hard thinker. I settled for a good place in Haly tower - which at the time was also empty.

Arhum Arhum replied on Thursday, September 16, 2021 04:19 PM PST 

I think you all missing point of my argument. Commercials see similar capital gains in percentage as residential properties do, the only difference is initial capital investment. So buy commercial files at cheap rates if you have the money and then watch them gain a lot in value. When you get possession, you may then generate rental income for a while until you feel exponential capital gains have been achieved, then you exit and move on. Commercial investment is best by far but difficult as you get priced out.

It is a no-brainer that investing in commercials for rental income is bad. No one should buy a commercial for the 4-5% annual returns through rental income. Plot trading (whether of commercial or residential) is much more valuable and gives better returns.

Business man, indeed true but temporarily. Business cannot all shift online, there is a social and pleasurable aspect of purchasing goods in person. Nothing can replace physical stores altogether. I am seeing many plazas emptying due to restaurant business down but same time, seeing a lot more offices open of real estate, construction and allied industries. Also seeing a lot more medical, grocery shops open. So overall, the demand for rental buildings although is down but not as much as being said. Post-covid, it will rebound.

Thinker, indeed same views here as I have said above. Hard thinker, I have seen many plazas empty from phase 1 to 6 recently and some have been empty for almost a year now. Most do get picked up quickly. Why are some still remaining empty? Because overall supply has increased due to boom in construction, either that or owners are not willing to budge to correct rental value rates. In phase 6, rainbow superstore occupied a 20 marla plaza front and back (4 floors i think) but they were outcompeted by Al Fatah and Jalal sons so they vacated. Now cakes and bakes has taken one floor but only 8 marla of that space. Spice bazaar has taken top floor and roof top but remaining space still is empty you see. Many more cases as such I observed in phase 1-6 Lahore.

alpha replied on Thursday, September 16, 2021 04:39 PM PST 

for capital gains, won't 5 marla file be better - less risky, more liquid , fundamental demand

alpha replied on Thursday, September 16, 2021 04:39 PM PST 

I meant 5 marla residential

Arhum Arhum replied on Thursday, September 16, 2021 07:07 PM PST 

If you look at percentage returns, then almost all categories of residential and commercial give roughly same returns. 5 marla generally stay more expensive per area because the development charges of most housing schemes are not progressive with respect to area and secondly, you're paying more installments per area. I'll take prism as example, I think 5 marla development charges were something like 9-10 lac, 10 marla was close to 14 lac and 1 kanal was about 20 lac. Similarly, installments are not progressive with respect to area and 5 marla have greatest charges per area.

So overall 5 marla ends up having a higher price later on and the effect of slighter higher demand for 5 marla is not huge on prices. Commercials in my opinion beat residentials as an investment because you can build on it and get rental returns for few years (as you wait for further capital gains to be made)

alpha replied on Thursday, September 16, 2021 07:20 PM PST 

Makes sense. But I fail to understand what will be use and customers of upper floors in a 4 marla four storied tower in a remote sector of a large phase ( prism ). A bank ( worth going ) will not put a branch in a 4 marla in a remote sector. So far, I see property dealer offices in the upper floors. For office space, one would prefer more central locations in an large corporate towers ( like Tricon ) instead of putting 30 folks in a 4 marla floor.
Also, location becomes more important factor in commercials - and with file in a large phase one is not sure where will it be. Risk-adjusted, an on-ground 5 marla, or a 5 marla file might be better.
One can rent a 5 marla ( enough fundamental demand ) as well. 8 marla excites me but its too expensive. 4 marla is like a suzuki cultus...

alpha replied on Thursday, September 16, 2021 07:25 PM PST 

again when I say 5 marla, I mean residential 5 marla. I am not an expert on 4 marla commercial real-estate so my observations are purely personal, and should be taken with a grain of salt. 4-marla might be a gold mine, but I need to touch and feel to believe it. A file for 3.5 crore in dhok khabba may not cut it for me.

Arhum Arhum replied on Thursday, September 16, 2021 07:36 PM PST 

Banks almost always want a full building of 8 marla and same goes for big businesses. For 4 marla, what I've seen is that basement, ground, mezzanine, first floors are easily rented out to anyone including restaurants, grocery, bakeries etc. Those floors are most valuable as every business wants them. The top 2-3 floors are always for offices, small restaurants, clinics, gyms and generally smaller businesses etc. The view from them becomes better and more aesthetic so they become nice working environment. To rent out a full 4 marla building is slightly tougher so you usually have to rent out the ground floor+mezannine+basement to someone and other floors to some other business. Very easy to rent out ground and lower floors but might take more time to rent out upper floors.

Business man replied on Friday, September 17, 2021 12:13 PM PST 

The increase of Property prices in DHA since 2001 threw a huge impact on other walks of life. The land owners in nearby areas of DHA also became millionaire & billionaire and they started purchasing lands in other parts of the province hence agriculture lands became expensive. The rent of Lands (Theeka) also became expensive and subsequently dairy products and agriculture products became too much expensive and got out of reach of 70% to 80% of masses. Of courses people are buying these products to their bottom line to bind the relation of soul and body and purchasing floor, rice etc. but expensive fruits and dairy products are out of reach for majority.

As a business man i know that hoteling and grocery items give only 15% return and out of this you have to arrange salaries, Electricity Bills, Rent and other day to day overhead and after managing all this you will see for savings. The constant increase of property prices will create more and more difficulties for business community. For residential purpose you may choose to afford Federal blue area or I-10 katarian as per your class and to maintain your Level but for establishment of a new business you need to survive with low expenses and a majority loose their investment as a result of high cost of infrastructure.

My brother in law sold his 2 plots of 1-K in Lahore and started a business of Sub-way in New york and after two years he sold the said business by losing all his basic investment and at a huge loss. So high rent is a world wide issue and for sure this will leave a impact on business in Pakistan. As Mr. Arhum said it may be a temporary issue but in my opinion it is a permanent issue in Pakistan and will increase day by day and this is not only for Covid-19. As these problems were also faced before Covid-19.

Only few people having their own commercial properties will earn or chain stores and big organizations will sustain due to their huge sale volume.

Arhum Arhum replied on Friday, September 17, 2021 06:18 PM PST 

I don't know about your brother's investment so cannot comment but rental returns are generally much higher in NY and USA. Pakistan, annual rental incomes are so low, only 5-6% of property value whereas almost everywhere else it is roughly 10% so rent is actually much lower here. Which is why you see small businesses thrive here actually. There are so many stories I can tell about how small businesses became medium sized and expanded or at least survived for very long time within Lahore itself.

There's actually a very good reason why rent is much lower in Pakistan. It is because most people in Pakistan make money from plot trading, hence those that invest in real estate are not looking for rental income primarily (as a result of being developing country). In other nations, which already have developed cities, those that invest in real estate earn money from rent rather than long-term trading of properties as property trading is does not given much returns in such countries. As for your comments on restaurants, restaurants with dine in have incredible margins. Delivery restaurants also have very good margins but much of that is eaten up by foodpanda monopoly through commissions. Groceries generally do have 15% margins but those can be upped through bulk buying as big ones like Al Fatah and Jalal sons do.

When it comes to DHA, business is very valuable. Cannot say the same about other areas but purchasing power of consumers in DHA is incredible which is why businesses thrive there.

Muhammad replied on Sunday, September 19, 2021 04:57 AM PST 

Thanks alot everyone JazaKAllah
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Market Pulse & DHA Files Rates By Lahore Real Estate September 14, 2021

LRE Market Pulse & DHA Files Rates Update By Lahore Real Estate®


DHA Lahore Commercial Files Prices Update
DHA Lahore Phase 7 Affidavit (4 Marla) Call us for Best Rates 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766
DHA Lahore Phase 7 Allocation (4 Marla) 290 Lacs 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766

DHA Lahore Phase 8 Parkview (4-Marla MalikPur) 230 Lacs 14/09/2021 Call Jamshad +
DHA Lahore Phase 8 Parkview (4-Marla ShivPur) 225 Lacs 14/09/2021 Call Jamshad +

DHA Lahore Phase 9 Prism Affidavit (4 Marla) 330 Lacs Hard to FInd 14/09/2021 Call Sarfraz Ahmed +

DHA Lahore Phase 7 Residential Files Prices Update
DHA Lahore Phase 7 Affidavit (5-Marla) Call us for Best Rates 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766
DHA Lahore Phase 7 Allocation (5-Marla) 61.00 Lacs 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766
DHA Lahore Phase 7 Allocation NOC (7-Marla) 78.00 Lacs 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766
DHA Lahore Phase 7 Affidavit (10-Marla) Call us for Best Rates 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766
DHA Lahore Phase 7 Allocation (10-Marla) 105.00 Lacs 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766
DHA Lahore Phase 7 Affidavit (1-Kanal) Call us for Best Rates 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766
DHA Lahore Phase 7 Allocation (1-Kanal) 175 Lacs 14/09/2021 Call Zahid Bhatti + & Shahid Riaz +923028449766

DHA Lahore Phase 8 Residential Files Prices Update
DHA Lahore Phase 8 Affidavit (5 Marla) No Availability 14/09/2021 Call Khadim Hussain + & Aoun Naqvi +
DHA Lahore Phase 8 Affidavit (10 Marla) No Availability 14/09/2021 Call Khadim Hussain + & Aoun Naqvi +
DHA Lahore Phase 8 Affidavit (1 Kanal) No Availability 14/09/2021 Call Khadim Hussain + & Aoun Naqvi +

DHA Lahore Phase 8 Z Block Residential Files Prices Update
DHA Lahore Phase 8 Z Block (5-Marla) 50.00 Lacs Rare Availability 14/09/2021 Call Abdul Waheed + & Aoun Naqvi +
DHA Lahore Phase 8 Z Block (10-Marla) 85.00 Lacs Rare Availability 14/09/2021 Call Abdul Waheed + & Aoun Naqvi +
DHA Lahore Phase 8 Z Block (1-Kanal) 155 Lacs Rare Availability 14/09/2021 Call Abdul Waheed + & Aoun Naqvi +

DHA Phase 8 Park View Allocation Residential Files Prices Update
DHA Phase 8 Park View Allocation (1 Kanal) 160 Lacs 14/09/2021 Ch.Jamshed +

DHA Lahore Phase 9 Town Residential Files Prices Update
DHA Town Lahore Affidavit (5 Marla) 73.00 Lacs 14/09/2021 Call Bilal Bhatti + & Muhammad Muneeb +
DHA Town Lahore Allocation (5 Marla) 73.00 Lacs 14/09/2021 Call Bilal Bhatti + & Muhammad Muneeb +
Balloting Coming Soon..

DHA Lahore Phase 9 Prism Residential Files Prices Update
Prism DHA Lahore Phase 9 Affidavit (5-Marla) 60.50 14/09/2021 Call Sarfraz Ahmad + Call Tariq Rahim +
Prism DHA Lahore Phase 9 Allocation (5-Marla) 59.50 Lacs Rare Availability 14/09/2021 Call Sarfraz Ahmad + Call Tariq Rahim +
Prism DHA Lahore Phase 9 Affidavit (10-Marla) Call us for Best Rates 14/09/2021 "Call Sarfraz Ahmad + Call Tariq Rahim +
Prism DHA Lahore Phase 9 Allocation (10-Marla) 107.00 Lacs Rare Availability 14/09/2021 Call Sarfraz Ahmad + Call Tariq Rahim +
Prism DHA Lahore Phase 9 Affidavit (1-Kanal) Not Available 14/09/2021 Call Sarfraz Ahmad + Call Tariq Rahim +
Prism DHA Lahore Phase 9 Allocation (1-Kanal) Not Available 14/09/2021 Call Sarfraz Ahmad + Call Tariq Rahim +

DHA Lahore Phase 10 Residential Files Prices Update
DHA Lahore Phase 10 Allocation (5-Marla) 48.00 Rare Availability 14/09/2021 Call Sarfraz Ahmad + & Tariq Rahim +
DHA Lahore Phase 10 Affidavit (10-Marla) 74.00 Lacs Rare Availability 14/09/2021 Call Sarfraz Ahmad + & Tariq Rahim +
DHA Lahore Phase 10 Allocation (10-Marla) 73.00 Lacs Rare Availability 14/09/2021 Call Sarfraz Ahmad + & Tariq Rahim +
DHA Lahore Phase 10 Affidavit (1-Kanal) 109 Lacs Rare Availability 14/09/2021 Call Sarfraz Ahmad + & Tariq Rahim +
DHA Lahore Phase 10 Allocation (1-Kanal) 108 Lacs Rare Availability 14/09/2021 Call Tariq Rahim + & Sarfraz Ahmad +

DHA Bahawalpur Files Prices Update
DHA Bahawalpur Land Affidavit (1-Kanal) 57.00 Lacs 14/09/2021
DHA Bahawalpur Land Allocation (1-Kanal) 56.00 Lacs 14/09/2021
DHA Bahawalpur Sector-Z (1-Kanal) 65.00 Lacs 14/09/2021
DHA Bahawalpur Commercial (4 Marla) 139.00 Lacs 14/09/2021
Please contact us for best market price of your plot, we have a dedicated team assigned for DHA Bahawalpur to help you regarding your plot assessment & buying/selling.
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DHA Multan Phase-1 Files Prices Update
DHA Multan Affidavit (05 Marla) 33.00 Lacs 14/09/2021 Call Khawaja Jawad + Khadim Hussain + & Mian Fawad +923024489001
DHA Multan Affidavit (10 Marla) 60.50 Lacs 14/09/2021 Call Khawaja Jawad + Khadim Hussain + & Mian Fawad +923024489001
DHA Multan Affidavit (1 Kanal) 81.00 Lacs 14/09/2021 Call Khawaja Jawad + Khadim Hussain + & Mian Fawad +923024489001
Note: These Files will be Included in 2nd Ballot

DHA Lahore Phase 13 (Ex DHA City) Files Prices Update
DHA Phase 13 Lahore (5 Marla) 37.75 Lacs 14/09/2021 Call Ch. Jamshed + Sarfraz Ahmad + & Mian Fawad +923024489001
DHA Phase 13 Lahore (10 Marla) 58.25 Lacs 14/09/2021 Call Ch. Jamshed + Sarfraz Ahmad + & Mian Fawad +923024489001
DHA Phase 13 Lahore (1 Kanal) 91.00 Lacs 14/09/2021 Call Ch. Jamshed + Sarfraz Ahmad + & Mian Fawad +923024489001

DHA Gujranwala Files Prices Update
DHA Gujranwala Land Affidavit (1-Kanal) Call us for Best Rates 14/09/2021 Call Ch. Jamshed + Jawad Ahmad + & Main Fawad +923024489001
DHA Gujranwala Land Allocation (1-Kanal) 92.50 Lacs 14/09/2021 Call Ch. Jamshed + Jawad Ahmad + & Main Fawad +923024489001
DHA Gujranwala Land Affidavit (10-Marla) Call us for Best Rates 14/09/2021 Call Ch. Jamshed + Jawad Ahmad + & Main Fawad +923024489001
DHA Gujranwala Land Allocation (10-Marla) 62.50 Lacs 14/09/2021 Call Ch. Jamshed + Jawad Ahmad + & Main Fawad +923024489001
DHA Gujranwala Land Allocation (5 Marla) 43.25 Lacs 14/09/2021 Call Ch. Jamshed + Jawad Ahmad + & Main Fawad +923024489001
DHA Gujranwala Commercial Allocation (4 Marla) 265 Lacs 14/09/2021 Call Ch. Jamshed + Jawad Ahmad + & Main Fawad +923024489001

DHA Gujranwala Residential Installment Plot Files Buyer Prices Update
10 Marla (Booking Price 44 Lacs in 4 years instalments) at 17.00 Lacs 14/09/2021
1 Kanal (Booking price 74 Lacs in 4 years instalments) at 18.00 14/09/2021
2 Kanal (Booking price 140 Lacs in 5 years instalments) at 90 Lacs 14/09/2021

DHA Gujranwala Commercial Installment Plot Files Buyer Prices Update
4 Marla (Booking price 225 Lacs in 5 years installment) at 43 Lacs (Hard to FInd) 14/09/2021
8 Marla (Booking price 425 lacs in 5 years installment) at 48 Lacs (Hard to FInd) 14/09/2021

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DHA Quetta Files Prices Update
DHA Quetta Land Affidavit (1-Kanal) 75.00 14/09/2021 Call Mubeen Asghar + & Sarfraz Ahmed +
DHA Quetta Allocation (1-Kanal) 72.50 Lacs 14/09/2021 Call Mubeen Asghar + & Sarfraz Ahmed +

Lahore Smart City Installment Booking Files Prices Update

Executive Block Prices
5 Marla Rs: 21,60,000- 14/09/2021
7 Marla Rs: 28,20,000- 14/09/2021
10 Marla Rs: 39,60,000/- 14/09/2021
12 Marla Rs: 43,80,000- 14/09/2021
20 Marla Rs: 64,80,000/- 14/09/2021

Overseas Block Prices
5 Marla Rs: 22,80,000/- 14/09/2021
7 Marla Rs: 29,75,000- 14/09/2021
10 Marla Rs: 40,80,000/- 14/09/2021
12 Marla Rs: 45,00,000- 14/09/2021
20 Marla Rs: 66,00,000/- 14/09/2021

10% down payment needed for locking booking and its a 3.5 year payment plan
Note: Please call for updated latest rate to lock a deal
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Lake City Lahore Files Prices Update
Lake city Lahore Allocation (5-Marla) 37.00 Lacs All Dues Clear" 14/09/2021 Main Waqas +
Lake city Lahore Allocation (7-Marla) 47.00 Lacs All Dues Clear" 14/09/2021 Main Waqas +
Lake city Lahore Allocation (10-Marla) 70.00 Lacs All Dues Clear" 14/09/2021 Main Waqas +


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Muhammad replied on Tuesday, September 14, 2021 09:46 PM PST 

AoA,
Why there is no mention of rates of DHA Rahbar Phase XI Files ?
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(388)
Saturday, August 15, 2020 10:13 PM PST 
Property price hike and future growth

Whats the cause of recent surge in property prices.. and what should we expect in next 6 months?
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(386)
Thursday, August 1, 2019 04:49 PM PST 
DHA Multan - SECTOR-W2 Evaluation- Plot - 15

Dear CMY SB/ LRE Team,

Kindly help evaluate above location.

Regards/

Muhammad
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(384)
Sunday, December 9, 2018 06:37 PM PST 
BAHRIA PHASE 8 RAWALPINDI SUPREME COURT CASE

I was planning to buy a 10-marla. But will wait now for a while to see what happens in the court case.
Any input from anyone regarding the subject matter?
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