Should you invest in Bahria Orchard Lahore?

Bahria Orchard forms an important part of what we could call the truly investment-worthy projects in Lahore. The housing scheme has seen a number of ups and down in the past couple of years, and what makes it viable for investment currently, is indeed its lowered prices and the expectations that the prices will go upwards from now on. So if you are an investor, here’s all you need to know about the situation in Bahria Orchard:

DEMAND, PRICES AND DEVELOPMENT UPDATE

Demand

Considering the low phase that Bahria Orchard Lahore saw until the end of last year, its demand has improved, even while it has decreased in other localities. Mian Muhammad Nawaz of Estate Land & Builders explained this by saying that in the past year, a lot of people have begun taking interest in the construction of houses. He stated he knew this because he is a builder himself and houses are being constructed in Phase I.

Development

According to Nawaz, Phases I, II, and III are completely developed. There are just a few blocks in Phase I which are yet to be acquired by Bahria Developers and so they are not developed. Meanwhile, development is taking place in Phase IV.

Within Phase IV, according to Omer Akbar of Estate 92, Blocks G-1 and G-2 are completely developed, while Blocks G-3 and G-4 have seen about 50% development. Development is yet to begin properly in G-5 and G-6.

Prices

The prices, as already explained, have shown a slight downward trend for a while, but all the real estate experts interviewed agreed on the fact that the prices are about as low as they can go, and they are expected to appreciate from now onwards. Prices in Phases I, II, and III currently stand as follows:

Plot Size	Prices in PKR
5 marla	2,300,000—4,000,000
8 marla	2,800,000—5,000,000
10 marla	5,500,000—6,500,000

In phase IV, the payment plan is still in effect, so the asking premium is being used to trade the files instead of market prices. In some blocks, an asking premium is being demanded, in others, the prices are in negative. According to Omer, the highest asking premium exists in 10-marla plots in Block G-3 where the asking premium is PKR 400,000. In other blocks, the prices can be PKR 500,000 below the launching prices.

SHOULD YOU INVEST IN BAHRIA ORCHARD LAHORE?

Why invest?

All the experts interviewed agreed that investment can be considered. They were sure that the prices have gone as low as they could, so they can only go upwards now. Prices will still remain rather low as the country goes through Ramazan and elections, but there are number of factors which will begin boosting its prices right after Ramazan.

For one, overseas Pakistanis are going to return to Pakistan for Eid vacations and they love Bahria projects. Another factor that will make the prices appreciate is the increasing demand for housing, particularly in Phase I.

Where to invest?

According to Khurram Gillani of Estate 4U, the best option to invest is Phase II. He explained that investors will certainly prefer the phase because taxes are not yet applicable there. Farakh Iqbal of Estate 4U agreed with him and explained that whereas the prices for 8-marla plots in Phase I hover between PKR 4.5 million and PKR 5 million, the same plot can be had in Phase II for prices averaging PKR 3.7 million. So, appreciation will be better here.

Khurram and Farakh both agreed that Block D is a great option for investment in these phases. Farakh explained that while prices are low in Block D, its prices will appreciate significantly because it is located near Block C, which has Bahria’s Central Offices, and Block D itself has Awami Villas where people are already residing and the fact will add value and increase the prices in the block.

Other options that can considered for investment in Bahria Orchard Lahore include Blocks J, H, and C, Central, and Eastern. For anyone looking to invest in installment plots, Phase IV is a viable option as well. Though you will be paying around PKR 3.8 million in lump sum anyway. Investment can be considered in 5-, 8-, and 10-Marla plots, he added.

Holding period

All the experts agreed that any investment made in Bahria Orchard will have to be medium term and investors should have the holding power of a minimum 12 months. The maximum period that you may have to wait for great profits, they estimated, would be around 24 months.

Finally, everyone agreed on the fact that any investment you make in Bahria Orchard currently should be in plots and not in files. That is, invest only in units that are available on-ground. In such cases, particularly in the case of residential plots, there is a great chance you will always make good profits from any such investment.

Are you looking to invest in Bahria Orchard? Do you have any questions about it? You can talk to us in the comments section.