What can PKR 5 million buy you in DHA Lahore?

The question is interesting; firstly because it concerns investors, many of who are inactive at the moment, secondly because, unlike how many people expected, the options available in Defence Housing Authority (DHA) (Phase I – IX) within this budget aren’t limited.

Under the recently introduced tax regime, non-filers of income tax returns cannot purchase property worth over PKR 5 million. Quite interestingly, the trade volume is higher for plots having lower price tags. The ban on non-filers may or may not be the reason why plots having reasonable price tags are more in demand, but we do know that the percentage of genuine buyers is currently much higher than that of investors.

The high demand for smaller plots and those having lower price tags up is pushing their rates up. According to Zameen Index for 5-Marla plots for sale in DHA Lahore, the price of these plots has been going up consistently since July 2017, where the appreciation seen during the last three months is even more prominent.

What are the options?

On average, the price of 5-Marla plots in developed DHA phases where possession has been granted is much higher than PKR 5 million. This leaves you with picking between phases and projects where possession for 5-Marla residential plots is yet to be granted. Here are your options:

Phase VII

Like all DHA phases, Phase VII also has one-Kanal options as its prime plot category. The limited number of 5-Marla plots available are located in specific blocks. The market worth of these plots can be gauged from the fact that the average price of 5-Marla plots, which were balloted recently with possession granted, is PKR 6 million. For the plot files, that number falls well below the PKR 5 million mark, as they have a price tag of PKR 3.5 million.

If and when balloted, these files are poised to grow by 100%. And you must also remember that the investment term here will not be short.

Phase VIII

The prime option falling in the PKR 5 million budget in Phase VIII is the 5-Marla plots in Ivy Green Block. At the moment, development work is underway in this block where property possession isn’t expected to be granted soon. These plots also come with development charges, while more than half of the due installments have already been paid. The paid amount is included in the plot price.

The market rate of a 5-Marla plot in Ivy Green falls in the price range of PKR 3.5 to PKR 5 million, where the rates vary according to location.

Phase IX Prism

The phase was ranked at No. 2 in Zameen search trends for popular phases in DHA Lahore for buying plots in May 2018. Over the last one year, the phase occupied the top position for many months before it started to drop in ranks, and this was accompanied by a drop in rates. The market is recovering once again, where the rates have started to bounce back. Since development work is underway in Prism IX, the market rate of a 5-Marla plot is still under the PKR 5 million threshold.

Being the most popular of all DHA phases among long-term and short-term investors, any activity in the market convincing investors to make a move will leave a direct impact on property rates in Prism IX. The price of a 5-marla residential plot here falls in the price range of PKR 3.3 to PKR 4.7 million.

DHA 9 Town

Also known as Shuhada Town, DHA 9 Town currently interests genuine buyers, many of whom are busy constructing their houses. Many builders are also active here, causing rates to go gradually up in blocks where property possession is available for the plot owners; you cannot buy a plot in these blocks under the PKR 5 million mark.

Block E, which is awaiting property possession, has 5-Marla plot options available in the specified price range. Depending on their respective location, these plots have a market price range of PKR 4.5 to PKR 5 million.

Do you have something to add to the article or want to share your feedback on which one of these phases could be more rewarding for investors having short- to medium-term investment plans? Share your thoughts with us in the comment section below.