On June 18, 2016, Chief Minister (CM) Punjab Shahbaz Sharif approved Phase III of Lahore Ring Road Southern Loop. According to the details, the CM directed the authorities concerned to initiate construction work on the Southern Loop Phase I and Phase II immediately and complete the project within the promised time.
Frontier Works Organisation (FWO), which was awarded the construction contract of LRR Phase I and II earlier in March this year is to complete the project by March 2017. Considering the fact that FWO is already engaged in Phase I and Phase II, it may not get the contract for construction of Phase III. Nonetheless, the CM wants all three phases of LRR be completed on time, which should ideally be done well before his tenure ends in 2018.
The final route of LRR has been a cause of major concern for Bahria Town, which dreads to face security issues if it passes per the planned route. Developer Bahria Town Malik Riaz Hussain has also expressed his conviction that he will not let LRR pass through the project as it not possess threats to the peace and security of the housing society but also causes considerable damage to the private property lying along the final route. This has, however, failed to convince the authority concerned and it appears that the construction plans will move ahead as planned.
If the route of Lahore Ring Road Southern Loop Phase III remains the same, Bahria Town, or some sectors of it, might lose its charm for the genuine buyers and investors. Almost all other housing society in the neighbourhood will nonetheless continue to reap massive benefits from this signal-free avenue. Through Zameen Blog, we have discussed impacts of LRR’s southern loop on the housing society located in this part of the city and have seen the exact same thing happen. Property rates in almost all housing societies that lie close to the proposed interchanges of LRR have gone by at least 50% in the last one year.
Construction of Phase III of LRR will leave impact on the rates and demand of property in Army Welfare Trust Phase II, LDA Avenue One, Sui Gas Phase II, and Golf View Residencia all other housing societies lying in the vicinity of this road. Many of these projects are already being spotted by the investors except for NFC Phase II, which faces management issues that currently seem to take advantage of the loopholes in our judicial system.
With Phase III announced, it is assumed that investors might start consider moving their investments from projects lying close to LRR Southern Loop Phase I and II to projects located close to the Phase III. I, however, believe that developed housing societies lying around Phase I and II still have decent profit margin. In other words, investments made in Central Park, Grand Avenues, Engineers Town, LDA City, Khayaban-e-Amin, DHA Phase IX and XI, NESPAK Phase 2, Lake City, Fazaia Housing Society, Bahria Education and Medical City and Bahria Orchard can still offer returns in the medium term.
Strangely though, property rates are already and reasonably high in the vicinity of LRR Southern Loop Phase III and that’s perhaps because of the presence of Bahria Town. So if you wish to gauge return on your investments made in one of these housing societies, the yard stick measure to it should be the average rate of property in Bahria Town. In case you wish to pick projects as messed up as NFC Phase II to get bigger piece of the pie, bear in mind that this investment could be long term but definitely worth the risk. Nonetheless, readers are recommended to invest in plots ready for possession.