Lamudi Releases Quarterly Real Estate Report for Lahore
KARACHI: We wrap up quarter three with mostly positive price increases which represent a healthy real estate market. Plots and houses in core DHA projects have remained popular with steady demand. The newly built houses in DHA housing schemes have maintained constant demand given their high investment potential and central location.
Plots prices surge in DHA
Plots in the popular DHA housing schemes increased substantially in the quarter to September 2016. Leading the price hikes was DHA Phase 9 where the average price for a 1-kanal plot climbed to Rs 9.5 million. Investors and private buyers will be encouraged by the price trends and analysts at Lamudi Pakistan expect this uptick to continue into 2017.
State Life Housing Society has increased in price by a marked 16 percent up to Rs 7,847,101 for a 1-kanal plot. This is no surprise given its accessible location close to the Lahore Ring Road and just 15-minute drive to the Allama Iqbal International Airport.
DHA Phase 6 is the most expensive of all 1-kanal plots in Lahore (under the Lamudi study) and the average price is Rs 18,267,437 but has decreased 5.92 percent since quarter two. However, Phase 6 has been on a steady price incline since 2011, so the slight downturn is likely to be temporary.
Demand for houses remains high
Topping the charts in the housing segment is once again DHA; with DHA Phase 5 and 6 still the most popular and most expensive housing schemes in the Lamudi report. The average prices to buy there are Rs 47,691,575 and Rs 44,344,988 respectively. One of the main draws for DHA 5 is the international standard features for instance balconies, solar hot water, and ocean views are normal, and security remains a priority for the management company.
DHA 6 is similarly upmarket when it comes to its showcase features which include designer interiors, multiple bathrooms, and secure parking facilities.
DHA Phase 3 tops the rental market
Average prices in DHA Phase 3 are Rs 139,218 per month making it the cheapest of the top five most popular rental locations. The top five most popular in the period from July to September were DHA Phase 3, Phase 4, Johar Town, DHA Phase 5, and DHA Phase 1. The most expensive is Johar Town where the monthly rent will set you back Rs 188,056 per month. At Johar Town, you are spoiled for local amenities given the many education institutions, healthcare centers, and restaurants in the area. Many young professionals and families are happy to live in the locality.
Overall, Lamudi Pakistan concludes that the market is healthy despite the uncertainty caused by tax amendments in the past few months. DHA continues to dominate the market offering investors a good opportunity to realize a return on investment—as long as they are willing to wait a number of years.