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Unrealistic Plot Prices DHA Phase 6 & 7,

(67963)
   Yousuf
Sunday, October 2, 2011 06:31 AM 
Reply: >
As I mentioned few days back, the prices of DHA phase 6 & 7 are unrealistic as per their locations & market situation and then many brothers criticized about my point of view. I would mention again and also add the few more points for those who are really want to invest in DHA.
1. DHA phase 6 & 7 locations? (Very closed to Indian border area) BRB is not far away.
2. Builders & Agents/overseas Pakistanis/DHA management are involved to increase the prices.
3. Have look, how many plots still available in all phases of DHA. Especially Phase 5 is empty in various parts.
4. Khaira distributor & Herpalkay Minor two water distributory sources crossing the phase 6 and will become the filthy nalaws once it will be more populated not only in DHA go back to sources coming from BRB and surrounding areas gradually making them filthy by vegetable market in BATA pure and border area residence.
5. Phase 6 & 7 will not be totally occupied next 15 years.
Question?. Why the prices are are increasing day by day. Still insisting Mafia are involved.
Waqar replied on Sunday, October 2, 2011 07:46 AM 

I complete agree with prices of DHA 6 & 7, but who cares if someone wanna through 9 million for stupid locations (while not even caring about fare location at DHA 1 & 2, where i believe 1K old houses (destructible are available for 12 million)
Jamal replied on Sunday, October 2, 2011 08:47 AM 

Agreed... Yousaf gud analysis specially point 2
ammmar lhr replied on Sunday, October 2, 2011 10:05 AM 

second that mr jamal is right
Mr. Khan, Sadui Arabia replied on Sunday, October 2, 2011 10:34 AM 

Dear Yousuf,

World extends beyond 7 phases of DHA as well! If you see the fraction of people living in DHA; may be less than 7% of total population of Lahore. A lot of other good and safe housing societies also exist there!

Sorry to mention but DHA has "Jammed" the minds of lot of people...one of my relatives (son of an Ex-Army officer) thinks that DHA is the best society in the entire world and his thinking has made him so biased against the people living outside DHA. Pity...Isn't it?
KAR replied on Sunday, October 2, 2011 11:26 AM 

Dear Yousuf, I do not agree with most of your points (but can understand your frustration) quite simply because (my arguments go in the same order):
1)God forbid if something happens re BRB, the whole of Lahore would be in challenging situation. In other words, DHA 1 would not be in a better position than ph.7, per say.
2)There is some demand from end-users (reasons mentioned below). Dealers/agents, I guess, can only inflate the prices if there is demand/activity in the market, otherwise they would have done the same thing a year ago when everything was dud.
3)Not sure, which areas in Ph. 5 you are referring to. But as per my understanding and knowledge the whole of Ph.5 is sold and owners are developing their plots when they feel like doing. Anyways DHA has non-development charges’ clause which will kick-in soon.
4)This is location-specific. But request the locals to give their opinion. In my experience, only plots near that nawlahs are usually affected and get their values reduced (prices of plots near that nawlahs ph.6 are showing the same trend). The rest of the phase stays the same.
5)No issue with that as it is only normal. Once it will be done (fully developed), the prices as per current trend won’t be less than 130 Lacs (100% appreciation in 10 years).

There are many reasons for this price escalation:
1)Speculation (but it is backed by demand, which was not there few month ago).
2)General law & order situation in Pakistan especially in Karachi and Quetta.
3)Global economic/political crisis – OP are thinking of having at least a house in their home country (same trend just after 9/11) in case they have to move back.
4)PKR devaluation against USD.
5)Lahore DHA is still one of the most secure and affordable societies in Pakistan.
DHA Resident replied on Sunday, October 2, 2011 12:10 PM 

Yousuf
It seems u wanted to buy but lost the opppurnity and now cribbing about it !! if that is not the case u don't have to mention or try to enforce Ur personal views on others!! It's not right my friend
BTW entire DHA is close to border area how different it is for phase 5 or 3 another few KMs away!!!
Bilal Shah replied on Sunday, October 2, 2011 12:44 PM 

I would agree with Yousaf. Prices are indeed unrealistic in DHA. I would also like to add some facts. Do keep in mind that I am an investor myself.

1)Prices are jacked by investors and dealers. Believe it or not, I actually receive calls from my dealer when to buy files or plots. I am a small investor with no more than 5-10 plots in DHA at a given time but other big investors purchase in lots of 50 or 100+ plots. They move the market

2)There is hardly any investment from Karachi or Quetta or overseas in Lahore DHA. It is all concocted story made up by market forces to attract innocent buyers and newer investors.

3)Should you invest in DHA? Yes but only for a year or two at max and get out when you see a little return. The prices are inflated and will drop to the ground once we the investors see return in any other market

4)I literally laugh at recommendations here to invest in commercial property of DHA. Why the heck would any knowledgeable buyer buy commercial property worth crores in DHA when he can buy 1 kanal on MM Alam in 5 crore and same goes for Main Boulevard Gulberg?

In short, DHA is safe for 1-2 years but do not look for insane price appreciation. Remember the golden rules of property investment

1)Only buy commercial property in underpriced areas
2)If you have to buy residential property, buy in an area which has potential to transform into commercial in next 5-10 years (like the genuises who invested in Main Boulevard Garden Town, Khayaban-e-Jinnah JOhar Town, Main Boulevard Johar Town etc)
3)DO NOT buy in residential closed gated societies

We bought a couple of plots in Johar town for around 20 lacs each about 10 years back. Now they are worth 2-3 crores. Now that is investment. I can guarantee you that any plot worth 1 crore in DHA wont be worth more than 1.5 crore in 10 years however 1 crore investment in any commercial property near thokar niaz beg would be worth 10 crores in 10 years
Headliner replied on Sunday, October 2, 2011 02:20 PM 

I agree with yousaf dealer tell inflated and unrealistic prices to plot holder and ppl then try to sell their plot according to the dealers price and dealer trap innocent plot holder for commission only they know nothing about future of the project, investment value and investment horizon
Yousuf replied on Sunday, October 2, 2011 04:26 PM 

Dear KAR & DHA resident,

I am not frustrated and not even trying to Crib for anything but would like to mention the true situation whatsoever is going on. I understand your situation also as you both seem one of them ( Investors category ) who are making the things hard for others to live in this country. Earn but don’t suck the blood of others. Allah app koo Hadiat dayyy.
Naseem replied on Sunday, October 2, 2011 04:44 PM 

@bilal shah !

nice analysis...being some one new to properties, I am curious enough to know the logic when you say " Dont buy in closed gates societies". If you can shed more light, since I am planning to buy one in a closed gated society myself.
Jameel replied on Sunday, October 2, 2011 07:52 PM 

In 2006 both DHA 6,7 touched the bottom, other parts of Lahore especially areas worth making house also touched bottom at same time. In 2 ys time ie in 2008 most of worth living parts of Lahore gained 25 to 40% value. worth mentioning societies in these were most of areas on canal starting from Muhafiz to Bahria all gained price slowly same is true for societies in vicinity of Shoukat khanum Chowk namely Valancia, NFC1, Nasheman 1,2 airline , architect ect all increased till 2008.
But DHA 6,7 stood where it was in deepest cut exactly at that time ie in 2008 i purchased a plot in DHA 7, because I understood that DHA was under priced at that time as compared to other part of Lahore.
My expectation was it will gain as well, now we see after development DHA6,7 start shooting up and now DHA 6 have over shooted. Two ys back if one must have bought a plot in DHA 6 he must have gained but now who ever will buy will have to wait long, at max it will gain at par with inflation or even less.
Even today DHA7 and 8 is good buy and they will perform better than inflation.
If some one does not like border area then he has other options as well and at this time these are relatively cheaper than DHA [cost comparison].
i always do investment doing cost comparison and God has given me benefit.
KAR replied on Monday, October 3, 2011 04:24 AM 

Dear Yousef, first of all, I am not an investor. I bought only one plot long time ago to make my house which was down by more than 40% at one point not in distant past. Secondly, I also believe ph. 6 is bit over-priced but Ph. 7 is still competitive and a good buy.
I am not sure what you were doing in when the DHA market was dud and everything was available in ph. 6, 7, and 8 (files) at very good rates. Now it seems you have lost the opportunity. On the other hand, even if I am an investor, I need return. There is no harm in investing money and wait for it to appreciate.
Please avoid passing strong comments like (“Earn but don’t suck the blood of others”). Nobody consoled me when my plot was down by 40% so I appreciate if nobody labels me “bloodsucker” now, if my plot has gained. Again, I can understand your frustration, but it could be a good lesson learnt for you (always take timely decisions). You still have chances to own a plot in DHA (see PV file or instance) or other good areas of Lahore. Brother Jameel, can provide you with good options as I always read his analysis with interest. We can debate for weeks on who is beyond this price hike/hype without reaching to a conclusion. But no offence, this is reality (the properties are exchanged at those prices - in simple terms there are takers).
To give you an example: Islamabad was always overly priced/beyond budget for me, but lack of my affordability didn’t bring the prices down. There are still people, for whom the value of Islamabad is what it is. Last but not the least: Allah hum sub ko hidayat day!
DHA lover replied on Monday, October 3, 2011 04:51 AM 

Mr.Yousaf & all those against DHA phases.
If you are not convinced with the prices and living standard of DHA, then nobody is forcing you to buy in DHA. there are a lot of schemes in Lahore where you can invest. The way you are looking at grapes and unable to catch, you are expected to say ANGOOR KHATEY HEIN.
CDW replied on Monday, October 3, 2011 06:00 AM 

Mr. Bilal Shah,

Your analysis and recommendations makes sense as well. Can you please, contact me at
MAK replied on Monday, October 3, 2011 06:33 AM 

I am living in DHA Karachi since 1983, and my son is living in Islamabad F-11. In my opinion there is no match of DHA Lahore:
1. Standard of development'
2. Implementation of By-Laws.

I bought one plot in Phase-6 B-Block in 2007 and now will construct my new home next year inshaAllah.
Ali Abbas replied on Monday, October 3, 2011 07:21 AM 

MR YOUSAF who is forcing u to buy a plot in phase 6.if u feel it is overpriced then go for other societies.i dont understand your intentions behind posting same thing again and again.DHA is a brand (atleast for pakistanis) so brand has its own value and worth.prices in phase 6 is directly linked with prices with phase 5.if phase 5 price will increase phase 6 will also increase and viceversa. phase 5 was also like phase 6 in terms of population two or three years back but know see its near 70 percent full. actually u losted best time to buy a plot in phase 6 that was 2 years back and know you are expressing your frustration here. so phase 6 prices will not go up or down becoz of ur posts, according to CMY phase 6 is defence within defece.after 5 years this will known as real defence,
DHA a passion to live replied on Monday, October 3, 2011 11:39 AM 

Mr.Yousaf

I'm totally agreed with Mr.Ali Abbas & I'm sure that if prices of above mentioned phases go down today, you will be standing as the first man in the long Que of buyers, in spite of all your reservations.
Yeah replied on Monday, October 3, 2011 12:14 PM 

Just like women in our country pursue lavish weddings and insane expenditures, men follow dha and the hype around it. Its just a house, you'll have the same kind of neighbors in valencia or any other half decent society. I don't totally agree with yousafs analysis but do agree that prices are insanely high for what that society is worth I.e dha phase 6 which isn't even populated yet lol and selling for 1carore
PAKISTAN ZINDABAD replied on Monday, October 3, 2011 03:08 PM 

Yiusaf bhai what will u say about CDA recently lunched housing scheme ? it's called brand value even though people know they are fare behind DHA in developments ..... Think my friend and accept the brand will always have extra value

Just wait till when America will be out from the region and hopefully we will have a more credible government InshaAllah
atif replied on Monday, October 3, 2011 03:39 PM 

what a reply by Ali Abbas. i think Mr Yousaf Ali has given you a good answer. if you have any problem with dha phase 6 then you can go for other societies
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