Lahore Real Estate Forum: Property News & Community Talk : ,

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This post is in continuation to my previous post “Platinum Investment DHA” posted in June 2015. I did my investments there and recommended it. It doesn’t make sense that I invest in one place and recommend other places. You can search my post on Google or on this website Ref. 90354.

I highly recommended Phase 8 S; on my short trip in June 2015 the plot in Phase 8 S-650 to S-656 was around 110 lac and now it is around 145-150 lac profit of 35-40 lac in 6 months. Yes in 6 months only. I recommended Phase 7 Upper Cutting; the plot in Phase 7 U-465 to U-470 was around 100 lac and now it is around 115-120 lac profit of 15-20 lac in 6 months. I also recommended Phase 5 M the price at that time was around 110 lac now at 140 lac profit of 30 lac that too in 6 months. All of my three recommended investments made handsome profit. Yes, I was strong opponent of Phase 9 (Prism). Based on past history of DHA I believe it promises to you end up giving it to your generation. Based on location, popularity, master planning it will be the best phase in DHA BUT I will still invest in Prism after 5 years when I see things on ground no matter what the price will be.

To make it clear; I am not even 1% to respected Mr. JameelMughal, Mr. Ahmet, Mr. Habib and Mr. CMY. You all are my mentor and I learned a lot from you in short span of time. I am young, in property business for less than a year, doing Ph.D in electrical engineering abroad and studied “Real Estate Investment” from professors of one of the best business schools in world. But academic knowledge does not apply exactly in practice especially in Pakistan. Sometimes it doesn’t hurt to listen to sophomore. Sometimes beginners and new entrants set the market trend as if everyone is expert and knowledgeable then there are no undervalued areas and unpredictability disappears.

Phase 8: The top location plots in phase 8 are more than 2 crore. The possession is expected in 1 year so juice is still left. Those who are thinking to sell Phase 8 and buying 1.5/2 kanal in Phase 7 or 1.5/2 kanal in Phase 9. Please do not think so. You don’t know what you are holding. Phase 5 is the first phase who broke the “Psychological Barrier” of 3 crore. Phase 8 will be the first Phase to break the “Psychological Barrier” of 4 crore. Top most location of Phase 8, excellent development, expect very good surprises by DHA in empty land between T and S block in future. Those who have investment there it’s worth it to hold it. It is still a long a way to reach maturity phase. Phase 8 is true love.

Phase 6: Those who are holding Phase 6 please help yourselves and your neighbors’ i.e. Phase 7. You can sell your plot at some premium and can buy 1.5 to 2 kanal (by adding some money) in Phase 7. High chances are that you will earn more profit by doing this.

Phase 7: The stigma of location (pocket, village, Indian border) is there and will haunt Phase 7 for a long time. At the same time it is the only low value investment in developed plots. There is another nail in the coffin i.e. hype created by the builders and developers as rightly said by Mr. JameelMughal and Mr. Habib. I believe, it will gradually start from blocks adjacent to Phase 6 like R, S and W block which may trigger the prices and this trend will be followed to other blocks. Those who are holding Phase 7 for last 1.5 year there is just an increase of 1-2 million and at the same time Prism gained significantly that too with less investment. So, it’s really frustrating and every time you hear is a wait for 6 more months. So, if you fed up, holding a good location plot you can sell it, add some money and buy in Phase 8 Or buy in other undervalued areas may not be in Lahore may be in Rawalpindi/Islamabad. Diversity! Don’t sell Phase 7 plot in order to buy in phase 9 at least not now. I see 10-15% steady rise for at least 2 years.

Phase 9: Don’t compare Prism with Phase 7. The comparison of Prism should be done with Phase 8 or Phase 5. Top location, Best Master Planning, Ring Road, Theme Park, Largest Phase, Huge Commercial! Where? – On Papers! But it has the promise and potential to be the best phase of DHA. The area is huge, task is complex so wait. After few years situation will be clear! Yes, Prism has gained significantly as compared to all others that too with less investment. I wish it will continue to rise at same pace till maturity. Those who have investments there All the best!! I don’t want to get into a technical debate of global financial crisis, economic downturn, elections; end of IMF program, the borrowed money has to be returned as well, debt-to-revenue ratio should be capped at 350%, beyond which it wouldn’t be sustainable. Currently, in Pakistan this ratio stands at an alarming 523%. By 2018-19, the debt-to-revenue ratio will be over 750%. Investors assuming that next 10 years will be very smooth! Insha’Allah it will be. I salute to all Prism investors for being so optimistic. Anyways, long term holders in Prism will never loose. Prism is future and future is bright! There are some people in this world who wants to play in present and near future!

Phase 5 M: Hold it! Wait for possession and build your dream house.

New investors! I lived in Islamabad for 3.5 years during ; I have seen the prices of D-12, E-11 14 Marla rose from 1 crore to 3 crore. House prices in F-7, F-8 in tens of crore. Rents are so high. Apartments are crore +. Bahria Enclave 1, Islamabad is very good location. I know this place. 15-20 mins drive from Serena Hotel. The good location 10 Marla plot in Sector A, developed, possession available is around 80 lac. I believe it is one of the best investments one can do. In Islamabad such location, facilities and price is worth it. Ideal for living as well as for investment. As Mr. CMY said, invest in on-ground plots in Bahria instead of files. So, 10 Marla possession plot in Bahria Enclave 1 Sector A is highly recommended. It’s a must visit. If I have the money I definitely buy one plot here. It has the potential to double within 3 years.

Second good investment is in Naval Anchorage, Islamabad. It is bit off the road the price of 1 kanal is around 80-90 lac. It is a secured gated community maintained by Pakistan Navy. I haven’t visited the place recently but it is recommended to me by my close friends and relatives. So, if you have time and energy to visit the place and observe on ground realities do so and please let us all know.

Summary

Phase 8 (Hold it! It will be first phase to break the “Psychological Barrier” of 4 crore)

Phase 6 (Sell it! Buy 1.5-2 kanal in Phase 7, help yourselves and your neighbors)

Phase 7 (Either Hold it! Wait for developer and builder hype OR Sell it! Add money and buy in Phase 8 OR other undervalued areas)

Phase 5 M (Hold it! Wait till possession)

Phase 9 (Potential Candidate of another “Psychological Barrier”, Worth it to hold Prism investments for long term)

For ISLAMABAD

Bahria Enclave 1 Sector A 10 Marla (Highly Recommended, Visit First Then Decide)

Naval Anchorage (Recommended, Visit First Then Decide)

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