DHA
Lahore Phase 9 prices have increased more than 100% just in one year
from June 2012 to August 2013. The one kanal file price was around Rs.
25 lakhs, it jumped to Rs. 55 lacs in Aug, 2013.
Is there any other investment which could give that much return on
investment like more than doubling your money in one year?
Probably not,
any other investment. But again it’s not that simple to understand and
get into it in haste.
It may seem easier in good times, but it is not like that in bad times.
Real estate market in any country has its own ups & down.
Pakistan is also one of them which has seen many cycles changes in real
estate industry in the past.
Many factors affect the growth of real
estate industry.
In real estate industry there are generally two kinds of buyers – the
‘real end users’ who want to buy to build something in future and the
‘investor’ who just wants to buy to sell in medium or long term future
to make profit out of it.
It is to be noted that the real estate market forces of demand &
supply are largely controlled by these investors. In addition to normal
investors there is also now the third type – the role of speculators.
The speculators’ basic motive is to make fast short term profits either
in few days or maximum in few months. They don’t want to keep the
inventory for long.
Real Estate speculators watch closely the market trends, and try to
predict the market trends for upward or downward movement, which an
ordinary person may not be fully aware of. This provides them insight
where & when to put their money into and when to dispose it off
and take out profits.
In some markets, gradually the trend builds up and big groups of such
speculators start buying and selling at fast speed. This puts the market
in a confused state for the ordinary end users. All real estate markets
are prune to such trends.
DHA Lahore phase 9 has been good horse to gamble for all the investors
and speculators. This is a new phase and ultimately it is going to get
developed just like any other DHA phase. In the DHA developed phase, 1
Kanal price selling in DHA approximately goes upto Rs. 1.5 crores.
So it
may seem logical that in future all such under developed phases in DHA
Lahore will also come up to that level. But the big question remains,
‘when’, either in 2 years, 5 or 10 years. That is the only factor which
sometimes is hard to predict accurately in real estate market, because
the answer to that is sometimes linked to many inner variable factors.
The speculation activity in the real estate market sometimes triggers
off the artificial boom, and when these speculators and investors fear
little bit of problem or instability, they fast try to take out their
money leaving the market dry & dead. That is what we call the
bubble burst. This way then the market loses confidence for some period
of time and many ordinary people also get scared to invest and try to
stay away.
The concept of speculation and its attached motive for earning fast is
not principally & ethically right which provides the wrong
sentiments and results in losses to ordinary people.
I personally know an acquaintance who bought DHA Lahore phase 9 file
back in 2003, when it was newly announced and with speculation it went
up to Rs.47 lacs. He bought it for Rs.45 lacs hoping it was further
going to go up.
But then the real estate market in Lahore crashed and
the prices fell down to Rs.12 lacs in 2007 for I Kanal file.
With almost 5 years of recession 2007-2011. The prices almost slightly
crawled up to Rs. 20 lacs only for DHA Lahore phase 9 file. From 2012
onwards it started seeing the fast movement, and it now reached up to
Rs.58 lacs as of July 2013.
As per the very recent update as of Oct, 2013, the prices have slightly
moved down and are currently at Rs.51 lacs for DHA Lahore phase 9 file.
It is advised & recommended that for any real estate investment
in Lahore, you need to do some homework first. Your clear motive should
be known and you should be little bit aware of the real estate market
knowledge. In addition to that you should also know some cautious and
prudent measures to take before actually investing in real estate market
in Lahore.
In case you are very well equipped, at least you should take some advise
from experienced & credible professionals of this field.
We recommend that you should at least try to deal with DHA approved
property dealers.
However, for latest updates, please visit the DHA website also.
