Zameen.com’s first six months of 2017 Lahore Property Market Report
For the first six months of 2017, property market saw major fluctuations. This was because of the announcement of the Budget in May, market speculations, and the month of Ramazan that slowed down activity, amongst various other reasons.
Lahore remained more or less stable; some areas saw moderate price drops (Bahria Orchard and LDA Avenue-I), whereas others such as DHA Lahore and WAPDA Town clung to stability. In Islamabad also, stability prevailed. Amongst various other sectors, B-17 stood out by registering the most price hikes (14.26% for 1-kanal plots and 18.05% for 10-marla plots), alongside Top City-1 that appeared as the fourth most searched place for plots. Genuine buyers dominated most of the market activity in this city. DHA Gujranwala stood out as the most prominent in Gujranwala, with notable price increases by 21.88% for 10-marla plots, and 15.44% for 1-kanal plots. Whereas, DC Colony experienced a sharp decline in prices. In Karachi, only Bahria Town Karachi registered a sharp increase in prices by 35.49% for 500-yard2 and by 43.69% for 250-yard2.Expansion in other areas didn’t occur as investors were attracted to Gwadar.
Most of the localities remained stable during this time. Price hikes were registered in DHA Lahore’s Phases I-VI as price hikes of 3.79% for 1-kanal plots and 1.72% for 10-marla plots were registered. Most of the activity was seen in Phases V and VI, as high population density inhibited activity in other areas.
Bahria Town Lahore saw an increased activity at the start of the year, but it soon died down because of construction along Lahore Ring Road and the Sector F issues that persisted. This kept away the genuine buyers and the investors. In Bahria Orchard, prices were initially inflated, but they went down by the first half. Investors were thus interested in Bahria Town Karachi, causing price drops of 3.20% for 1-kanal plots, and 7.78% for 10-marla plots. Average prices in Bahria Town for 1-kanal plots went up by 0.68%, whereas those in Bahria Orchard went down by 3.20%. This indicates overall stability for 1-kanal plots. However, prices of 10-marla plots went up by 0.18% in Bahria Town, and went down by 7.78% in Bahria Orchard. This indicates that prices for 10-marla plots didn’t remain stable enough.
DHA Phases VII-IX also registered price hikes of 3.29% for 1-kanal plots and 4.20% for 10-marla plots. Average prices of 1-kanal plots in DHA increased by 3.79% in Phases 1-VI, whereas, in Phases VII-IX they increased by 3.29%. For 1-kanal plots, average prices in DHA Lahore increased by 1.72% in Phases I-VI, and by 4.20% in Phases VII-IX.
WAPDA Town has a high population density because of which it remained rather stable. Average prices for 1-kanal plots increased by 0.86%, whereas those for 10-marla plots increased by 0.88%.
In Lahore, only LDA Avenue-1 performed badly as prices fell by 2.79% for 1-kanal plots and by 5.98% for 10-marla plots. This was primarily because of litigation issues here and lack of security, causing average prices to drop by 2.74% for 1-kanal plots and by 5.98% for 10-marla plots.
Rental yield for DHA Lahore stood at 4.73%, in Johar Town by 5.36%, 3.62% in Bahria Town Lahore, by 4.03% in WAPDA Town and by 4.11% in Valencia Town.
In H1 DHA Lahore has remained the top choice for both homes and plots followed by Bahria Town and Bahria Orchard.