DHA Lahore Plot Prices Analysis

What was once designated as a home base for army officers has now grown into million dollar real estate enterprise. DHA Lahore or Defence Housing Authority has evolved tremendously from its previous use. It is now a destination for potential residents and businessmen. Mainly it is residential home to many of Pakistan’s affluent people.

It has become one of the most developed community real estate areas in Pakistan. There are many phases to this community. Some phases are locales to high end housing, restaurants and other venues such as a gym, a university and a golf course.

DHA Lahore is ideally located on the southern side of Provincial Capital Lahore, which is serene at the same time as the time progressed has shaped into highly developed part of the city as well. DHA Lahore now comprise of total 11 Phases, involving some breath taking infrastructure and developments internally.

Since its inception it has seen price several price fluctuations. While one plot was trending and pulling in residents another was being developed. Currently residential homes in the area start at around Rs 20 million (UK £150,000) and go up to Rs 25 crore (UK £2,000,000) and above.

Price Trending Fluctuations

Beginning in 2014 DHA Plot prices have moved in an up and down trend. Starting with property in Lahore and Karachi and now in Islamabad, the trends have beneficial to investors and residents for the most part.

Beginning in 2014 DHA Plot prices have moved in an up and down trend. Starting with property in Lahore and Karachi and now in Islamabad, the trends have beneficial to investors and residents for the most part.

During 2015 the real estate market for Pakistan was fairly stable with upward financial predictions going strong in some areas. For DHA, the upward market trends were not as great. During spring of 2015 growth was slow for Lahore. By May 2015 it was a downright crawl for the city’s real estate market by comparison, where all of the major localities saw downward trends.

With the approach of Ramadan, DHA Lahore managed to keep its prices stable. However notable price dips were seen elsewhere in the city. With the Phase IX’s balloting, Lahore managed to keep only a negligible 0.29% drop. The impending balloting sparked investors to begin to invest money into files of plots in DHA Phase IX. This initiated a price spike in files. Thus generating new hope for further price stability and increases.

The down trends continued in Lahore during May 2015. Lahore Cantonment’s one-kanal plots saw prices drop another 1.02% in May 2015 after a similar drop in April 2015. Prices for one- kanal plots also continued to decline in Bahria Town, with a 3.48% drop in May 2015. LDA Avenue I also suffered a 3.04% decline in the prices of its one-kanal plots in May 2015.

It was not all bad for Lahore. After keeping up a more or less steady path for the for the early months of 2015, prices in Lahore Cantt came down 2.77% in April 2015, with a 1-kanal plot going for an average price of PKR 29,963,158. DHA Lahore continued to follow its gradual upward trend with average prices of same-sized plots registering a 2.00% gain to land at PKR 15,199,937.

Bahria Town Lahore also saw a month-on-month rise of 2.23% for an average price of PKR 10,507,385 per 1-kanal plot. LDA Avenue I plots, meanwhile, did not register a significant change, losing 0.92% in value over the course of April 2015 to land at PKR 9,518,987.

One-kanal homes in Lahore Cantt went for an average price of PKR 36,227,287 in the same time period and pulled in an average rent of PKR 127,695 for a rental yield of 4.25%. DHA Lahore’s 1- kanal houses averaged PKR 35,450,440, while Bahria Town and Johar Town averaged PKR 29,224,338 and

The top performers of Lahore’s real estate market have been remarkably consistent all year. Defence Housing Authority (DHA) Lahore has been the most popular choice for investors and buyers throughout the year, and it continues to retain its position at the top of the table for both plots and homes. Despite its remote location, Bahria Town Lahore has also received consistent interest from buyers because of its multitude of excellent facilities and amenities, and has retained second place on both lists.

The rest of the top performers have all made their way up and down the list on occasion, based usually on important developments such as the announcement of possession or major infrastructural progress. The uncertain political landscape has also served to intensify interest in localities that are considered safer from both a security point of view and in terms of potential for returns, so the top players are likely to retain their positions in the coming months.

Lahore’s Downturn

The primary reason behind the volatile Lahore real estate market is quoted to be the mystery surrounding its Ring Road's southern loop; the planned construction stirred confusion among property buyers and investors of Bahria Town and adjoining societies like Lake City about its route. The conjectures making rounds regarding the constructions planned route has actually been holding investor sentiments back. However, the study also shows despite these ambiguities, Bahria Town Lahore - the alleged victim - has apparently been unaffected, showing a steep rise in property price. On the other hand, Lahore Cantt and DHA Lahore experienced dips in prices, as did LDA Avenue I experienced dints in prices.

Secondly while Lahore property market has plunged, real estate prices in Karachi and Islamabad have thrived in the last couple of months, making FY16 an upbeat year so far. The popularity of Bahria Town in Karachi has picked up manifolds, and improving security situation in the mega city has definitely played in. The city's realty market was generally profitable for stakeholders; Gulshan- e-Iqbal and DHA Karachi also witnessed a rise of 4.51 percent and 2.12 percent in prices, respectively. Similarly the property prices have bloomed in Islamabad as well. However, two projects in these two cities, DHA City Karachi and DHA Islamabad have seen slight fall in prices.

And finally, the real estate market received a major thrust post Eid ul Fitr, which is continuing in Islamabad and Karachi, while Lahore could not keep up due to the lack of clarity regarding the Ring Road route.