info replied on Saturday, July 4, 2015 11:25 AM
Dear Khan, though im not a property expert but i can try to explain certain principles for investment in commercial property.
1. Commercial value is primarily because of the residential it serves, therefore, try to look for areas that have residential developed as houses will be constructed soon. This is the time for largest jumps in commercial property prices.
2. Be wary of the time lines for development. Development does take time and average for DHA has been around 10 years no matter what people say.
3. It is the local residential area that matters meaning thereby that people from Cantonment or Gulberg etc. generally don't go for shopping in DHA. Therefore, go for areas that have largest continuous local residential area. Try to go for that area with large 1 or 2 kanal plots since composition of clients from small plots is different and so is the case for commercial also.
4. History tells that commercial values in CCA are always more than main road plots because of the cluster effect. People like to go to an area where there are facilities like banks, bakeries, eateries etc. clubbed together. For example, the value of CCA in phase 3 is higher than Phase 1 main road commercial plots. Another example is phase 6 in 2011 when CCA 8 marla was prices around 270 lacs and MB 4 marla was prices around 250 lacs. Now CCA 8 marla facing parking is around 1200 while main road MB is around 900 so CCA almost always wins.
There are several other points but i have to leave for now and may be we can discuss this issue in detail later. Regards. |
