Most of the real estate investors are just trying to judge the market direction after the tax bomb (not really, a small hand grenade to be honest). After the tax increase, market has not fully recovered yet but it started to pick up. The transaction in July 2016 were down to 3-4% of the transactions of June 2016. In August it is picking up and in the last 4-5 days transaction are 15-20% which means in DHA daily transactions are roughly around 18-25. On an average day before July 2016 transaction were around 120+.
A correction in the market is expected as the last year increase was not justified for some areas/projects. Below points should determine the correction
1. Under developed and small projects will be under pressure and investment interest will be low for some time until the market fully recovers. Market prices will decrease in areas where investment appreciated contrary to ground realities.
2. Developed projects/sectors will remain in demand and price there will increase steadily
Lets start with A class projects
DHA Phase 1,2,3,4,5
Prices for DHA Phase 1 to 5 are expected to remain stable. From investment perspective you can buy commercial for rental purpose only. Avoid Phase 5 M block specially commercials.
DHA Phase 6
DHA Phase 6 is developed phase and has genuine buyers looking to build a house so prices here will mostly remain stable. Buy here if you want to build house in D, E , F , N blocks. You might get plot 7-8 lac less than market price. Commercial are good buys on Main MB and can give good gains. Buy MB in L block.
DHA Phase 7
Mostly prices will keep on increasing gradually as construction of houses started there. Invest in Phase 7 for 1-2 years good gain. Commercial prices may go down and can be bought for a short term trade on price dip.
DHA Phase 8
Price will remain stable mostly. Avoid Z Block, Broadway , CCA 1 and CCA 2 which may lose interest due to tax pressure.
You should buy residential for house building as you may grab good deal.
DHA Phase 9 Town
DHA 9 Town prices of both residential and commercial will remain rather stable. Not much price increase expected in short term. Residential can give good gains for mid term and commercial is a good buy under 330 Lacs.
DHA Phase 9 Prism
DHA PRISM will be most effected in short term after the tax increase. Prices may go down for short term. Avoid investing in PRISM under the current situation and wait till the tax dust clears out. Do not invest in A , B and C for short term where prices are too high. If you want to invest in PRISM then buy reasonable plot in 65 to 80 range and not more than that. If you can't hold for long then better to sell it.
DHA Phase 9 Ext
The price increase in DHA Phase extension was not based on ground realities and prices may come down significantly.
Sell whatever you have there at current market and invest in the other projects.
DHA Phase 11 Rahber
DHA Rahber gained crazy in last few months and reached its peak. Avoid DHA Rahber for further investment and sell whatever you have there.
Bahria Town has given great price appreciation. Now its not worth sitting on property If you don't want to build for rental. Buy here for rental income or for living. If you are looking for price appreciation then better to sell and move to Bahria Orchard.
One of the best project by Bahria in Lahore. Development standards are very good compared to any project in Lahore. Visit if you haven't yet. It will definitely get benefited after the completion of Lahore Ring Road. Invest in Bahria Orchard for short and mid term. There is lot of room for price appreciation here in almost all properties specially Phase 3.
One of the fastest growing project. Its location is what makes it superior. It gained a lot last year but very justified price increase.
Still there is lot of room for price increase. Invest in lake city in both residential and commercial. Investment here will benefit both long term and short term. Try to invest in on-ground plots but installment plans are also good if you don't have enough money in hand.
Here is a list of some B class projects worth investment
Invest here on possession plots only. Avoid plots which have litigation issues.
AWT Phase 2
AWT Phase 2 project will gain steadily due to LRR.
SUI Gas Phase 2
Lot of room for price increase in Sui Gas Phase 2. You can easily find a possession kanal plot for 5 million. Good for living and for investment.
NFC Phase 2
Please avoid it for now until the project politics comes to an end, If you own anything here then better to invest somewhere else.
Avoid it for now. Don't buy until NAB resolves the issue.
It is going to be typical LDA project. There has been some good news of embassies setup there and LDA taking control of things but wait for the things to be more clear.