Market was hugely under priced in 1999 when good old 10 Merla House in Iqbal Town/Faisal Town was available in 20 Lac and relatively new houses were 28 to 30 Lac, Now in 13 years inflation adjusted price of these houses must be 20X4=80 and 30X4=120 Lac each and it is exactly so Today So market now is at same place where it was last deepest recession. In 1999 I was not Interested in DHA and Due to Lack of Internet resources I can’t present the Data for DHA, but some experienced dealer of DHA can tell you where DHA was in 1999
I have been in Touch with site for more than 6 years and saw many Ups and downs in property, Being Overseas many of my relatives and friends bough property and their experience is with me.
I can tell you that still Market is under Priced,
The Market recovery in DhA started after hand over of DHA 6 and development in DHA7 at that time DHA Files especially DHA 9 was sleeping, It is about 2 years ago, during Last Slump people thought that all the livable or handed over property is safe and files are dead business. But when market beats up the Files gain much more than Plots, reason is most of file owners are Sata Baz and want short term gain , I Consider is Next to Stock exchange but Better than that.
Now when Plots Prices are going up and up every month you may be interested to speculate what is overpriced and what still Underpriced at this Moment
Let us take reference value of DHA 5 Good Location Plot which is 110 now
Then DHA 6 is at right price
DHA 7 is still under priced
DHA 8 is at right Price
Park View is under priced
Park view Houses are much underpriced
DHA 9 File is bit Over Priced
Most of good societies in other parts of Lahore are underpriced, and will get DHA heat transmitted to them in 1,2 year. This also happened in 2005 boom. Recently NFC 2 Price has also gained.
LDA Avenue 1 is much underpriced
Air Avenue is much underpriced [Due to DHA /Urban developer’s relations but it has to settle sooner or Later]
From_Karachi replied on Thursday, May 17, 2012 09:27 AM
In 2001, a 50 lac rupee house's rental value was 25 thousand rupees a month (0.5% a month).
Today the same house's price is 250 lacs and its rental worth is 70 thousand rupees (0.25% a month).
Rest you can calculate, I don't see a race in prices yet. |
ZNS. replied on Thursday, May 17, 2012 11:51 AM
Laws of economics do not apply in Pakistan. Look at Pakistan condition and real estate market, going in opposite direction. There is no relation b/w jobs/economy/security to real estate market in Pakistan. |
JJJ replied on Thursday, May 17, 2012 12:27 PM
Dear ZNS,
This is because black money is circulation due to Hugh corruption in the Country everywhere. And infact this corruption money's circulation is creating some remaining economic activity otherwise Rulers have left no reason for collapse. |
Jameel replied on Friday, May 18, 2012 04:11 AM
I dont agree that most market is overpriced but it wil gain significantly in 2 years. The houses Built a while ago are under priced at this moment, one of my friend made house 0f 10 Merla bit by bit and till now he has spent 70 Lac though it is very good Quality, In same area good built house is 80 Lac, the house is Located in DHA 8 c ext.
Houses are never bought by salaried persons, in west house sale is driven by availability of easy loan suppose you are earning 3000 dollars and you can manage the expenses in 2000 and save 1000 Dollars. Obviously you need 300 months to Own such house and that house will triple in price in that time so what U do, You wait for easy loan when you get loan at 2.5% you pay 10% and Mortgage the house for 20 years. Then you buy house and rent at same time you get some rent and add some money from your saving .At the end of 20 years house is your and sometimes U calculate and you paid only 1/3 of House cost + 10% booking price, So you make asset just by taking headache and baby sitting for 20 years.
we all know in Pakistan where interest rate never Comes less tha 17% and where rents are not reliable. the 90% houses are bought by overseas, these people early 10 to 15 times their country men and every 2nd year save enough money to buy a house or Buy a plot in DHA.
About Tax i think 10% will be too much and cant be levied. Such taxes serve as poison for real estate market and Law for "Open file" works as Abe Hayat for real estate business. If DHA allows Open File in 6 months You will see price will sky Rocket. |
From_Karachi replied on Friday, May 18, 2012 04:42 AM
Jameel bhai,
90% of the houses are bought by overseas ??
I can tell you about Karachi and Hyderabad.
75% of houses in Hyderabad are bought by Zamindars from Interior Sindh.
75% of houses in Karachi are bought by Businessmen and Bank/Multinational employees. |
