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Looking to play big ? Invest in DHA commercial property for massive gains

DHA Lahore, being one of the most promising real estate projects of Pakistan, not only attracts big investment but rewards its investors with a constant rise in the value of property. The most promising investment in DHA Lahore, despite the fact that a lot of transactions there are carried out for residential plots, is certainly the commercial plot. The rise in value of DHA commercial plots is not just confirmed but also huge; the profit ratio can sometimes be as high as 100%, and that too in the short or medium term.

For investors interested in scoring big gains, I have done some research on the past sale price stats of commercial plots in DHA. These stats will help you see the sort of profits you are looking at if you choose to buy commercial plots in DHA Lahore.

A tiny percentage of every new sector DHA launches in its developing phases comprises commercial plots. As and when development takes place in these new sectors, the value of residential plots in them increases as well, but this price rise is not a match for the gains the commercial plots experience. Moreover, the price rise phenomenon of residential plots slows down after a while, but in case of commercial property that usually doesn’t really happen at all.

So far during 2015, the average sale price of 4-marla commercial plots in DHA Lahore has been increasing constantly. On average, their value increases 3% month-on-month. Per Property Guide stats, 4-marla commercial plots were about 25% more expensive in August 2015 than they were in January 2015. A 25% price rise in DHA commercial plots means a gain of over PKR 7.5 million in less than 8 months.

Let’s have a look at the sale price trends for these commercial plots phase by phase. Please note that I have collected stats for commercial plots of Phases VI, VII and VIII as most of the trading in these plots is currently being carried out in these three phases.

SALE PRICE TRENDS FOR COMMERCIAL PLOTS IN DHA PHASE VI

Among the phases where real estate activity is high, the value of commercial plots is the highest in DHA Phase VI and considering the importance of this phase, these plots have decent potential to gain more value gradually.

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According to Property Guide stats, the average sale price of a 4-marla commercial plot in DHA Phase VI has increased from PKR 58.5 million in January 2015 to PKR 65 million in August 2015, which is a price rise of 11%. For 8-marla plots, the average price rise noted between January and August 2015 was 15%, with the current average sale price standing at roughly PKR 100 million.

SALE PRICE TRENDS FOR COMMERCIAL PLOTS IN DHA PHASE VII

Due to rapid development seen in this phase and the addition of new blocks as well as extensions in the existing blocks, DHA Phase VII has been attracting a lot of attention and, consequently, an increase in real estate activity. The high demand for property in Phase VII has of course brought along a very handsome rise in property values, both for residential and commercial plots. For commercial plots, the price rise has been particularly lucrative.phase-7

Per the portal’s stats, the average sale price of a 4-marla commercial plot in Phase VII has increased from PKR 16.5 million to PKR 21.5 million between January and August 2015; an impressive price rise of 30%. Real estate experts believe that in a year or so, when DHA Phase VII will be fully developed, the focus of commercial activity will shift here, bringing it on par with Phase VI in terms of property values. If that actually happens, the value of 4-marla commercial property in Phase VII could rise to three times its current value.

The average sale price of 8-marla commercial plots in this phase, per Property Guide latest stats, is PKR 39 million, which has increased from PKR 33 million in January 2015 – a rise of 18%.

SALE PRICE TRENDS FOR COMMERCIAL PLOTS IN DHA PHASE VIII

The location of Phase VIII and the pace of ongoing development there is the main reason why, for so many investors and genuine property buyers, there isn’t a better option right now. Moreover, the block-wise development in Phase VIII allows DHA to continue offering more and attractive investment options.

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Among the commercial options in the phases I am discussing, the value of plots in Phase VIII has increased at the highest rate for both 4-marla and 8-marla commercial plots. Per our August 2015 stats, the average sale price of a 4-marla plot has increased from PKR 26.5 million to PKR 35 million, which is a magnificent price rise of 32%.

For 8-marla plots, too, the price rise recorded in Phase VIII is the highest among its counterparts from other phases. The average sale price rise recorded for these plots between January and August 2015 is 30%, with the average sale price currently standing at PKR 65 million, which was at around PKR 50 million back in January 2015.

INVESTMENT TIP FOR DHA COMMERCIAL PLOTS

The recently launched 4-marla commercial files in Park View, Phase VIII are being offered at the very attractive rate of PKR 15 million. The balloting of these commercial plots is expected in 6 months, with possession due in another 4 months. For an investment duration of a year, investing in these files could be very rewarding. The investors of these files can expect to bag gains of up to a whopping 100% in about a year.

Our other recommendation for commercial investment in DHA is Q Block in Central Commercial Area 1 (CCA1), and T Block in CCA4 of Phase VII. Balloting for these commercial plots has been done already, with possession available in the commercial plots of Q Block and expected soon in T Block. The current average rate of 4-marla commercial plots in Q Block, CCA 1 is between PKR 22.5 million to PKR 25 million, and that 4-marla plots in T Block, CCA4 is between PKR 20.5 million to PKR 22 million.

With possession expected to be offered soon, the 4-marla commercial plots of T Block, CCA4 look good to offer returns worth a couple of million rupees in the short term.

So, dear investors who are no longer tempted by six-figure gains in real estate values, it is time to play big. I am here to answer any questions you have in mind, so leave a comment below and I will get back to you ASAP.