DHA Multan Land Acquisition Status.
DHA Multan phase 1 was notified as 9 villages for controlled area of defence housing authority.
Partial villages were as following
Gith brabar, Basi ratta, Punjkoh, Madina, Basti Nohand and kotla Sadaat.
Complete villages under controlled area were as following.
Garey wahn, Raipur and Sangi.
DHA Multan phase 1 supposed to be on 2500 acres of land but there was some resistance from certain landlords to handover their land for development while some others were eager to be part of this great development. DHA decided to expand the limits and included Tahirpur later on in current phase of development.
Land acquisition is the most tedious and full of litigation task which dha Multan has almost successfully completed. They acquired 4500 acres of land for phase 1 although their some very small pockets are yet there to cleared (May be 50 acres). This is a remarkable feat by the current administration to acquire land on such a speed :) :) .
Now land bank size is bigger than dha’s own utility. So dha decided to sell these in the market directly. My estimate (please note estimate) is that there will be direct selling of dha equivalent of 2000 kanals. This will translate into 2 kanal, 1 kanal, 10 marla and 5 marla
files. DHA is likely to sell it on instalment as well as on cash files.
What will be its impact on the market when dha phase one development is gone 100% bigger than previous plan? So this means abundance of supply in an untested market. This over supply will not let it rise like prism but steady gains will carry on with the speed of development, once short term investors departure is absorbed by the market.
What do you think that new moves of bigger plots and smaller plots will have impact on the market and bigger size of overall development will impact the market in long term?
Abdal® replied on Monday, June 20, 2016 09:57 PM PST
You have raised interesting and pertinent question and food for thought. To this effect, I have a query for my understanding. For every 8 kanals of land, 2 Kanal goes to landowner as affidavit file holders, 2 kanal remains with DHA and 4 kanal land is lost in road, infrastructure, parks etc. The affidavit conversion to allocation file number as of June 10, 2016 stands at 4810, let us make it 5,000 by June end. If the general hearsay is that DHA will be launching public offering after Eid, I do not presume there will be more than 1,000 affidavit files in the market which have not been converted to intimation / allocation. Once the public offering is announced, I presume the holder of affidavit will have only three options either to sell it or get his affidavit converted to allocation by paying membership or opt not to be included in Phase-1. Under the aforesaid, the assumption that not more than 1,000 affidavit files are outstanding at this stage seems plausible? If we work back from the 6,000 files, it means the same number of 6,000 files / kanal of land will be with DHA, this will translate into 3,000 acres of land and not 4,500 for Phase-1. The question is where would the price adjust considering the demand-supply for 12,000 of kanals comprising 14,000 - 15,000 plots with majority of 1 kanal and remaining 2 kanal, 1 marla and 5 marla in short and long terms. Is phase-1 too big for the market? What will be the action of affidavit holders at the announcement of public ballot? Does the allocation holders have the financial strength to hold the file or they are there for short term gains? |