As you must have heard, DHA has announced that it will start development work in Prism IX on Monday, February 8, 2016. As we anticipated this development, we had been recommending that folks invest in these plots to secure impressive short-term gains.
Well, the news is out and it is being discussed passionately among property investors and real estate agents. Those who have been waiting to make the right investment move, now is the time.
According to the contract that has just been awarded to Maakson, a private firm, the contractor will initiate the construction of main roads – those that are at least 120-foot wide – before all other developments. This means that blocks that have wider roads passing through them will see a major price jump in the next couple of months.
Now, if you are looking to invest in Prism IX, you need to have access to crucial information such as which blocks will see the development of main roads, how these blocks will benefit from this and how much of a price rise investors can expect in the future. The answer to these questions lies in precious Property Guide data that is carefully maintained and regularly updated.
Popularity and characteristics
Among all DHA phases, Prism IX takes the top rank for people browsing the portal for plots in Lahore. Because many believe that the development this phase will take a while, they fail to comprehend why investor interest as well as investment volume doesn’t drop here. Perhaps this is because no other phase in DHA is planned like Phase IX and delivering this phase on a priority basis will help the developer move forward with its plans for Phase X and Phase XI. DHA officials shared these plans with real estate agents registered with the authority in a meeting held about a month ago.
In this phase, the top five most searched blocks are Blocks C, A, R, J and F. Interestingly, all these blocks, except for J, are located close to DHA 9 Town. Moreover, except for C, none of these blocks have land areas or pockets that aren’t a part of this phase.
It should also be noted that the main arteries of Phase IX pass through these blocks on their way to the inner blocks. This, in other words, means that blocks that can exponentially benefit from the development of main roads are already hot among the potential investors and property buyers browsing Property Guide.
Development charges will be applied to Prism IX plots from this month, and the first payment is due on February 29. These dues have to be paid in 12 quarterly instalments over a period of 3 years. For every delayed payment, there will be a surcharge of 10%.
If we do the math, the quarterly instalment of a 1-kanal residential plot is PKR 162,500 and that of a 10-marla residential plot is PKR 108,333 this month. Owners of 5-marla residential plots have to pay PKR 75,000 this month.
The quarterly development charges to be paid for 4- and 8-marla commercial plots are PKR 162,500 and PKR 312,500 respectively.
If we add development charges to the current rate of plots in Prism 9, the average sale price of 1-kanal residential plots goes up to PKR 10,450,000, while 10-marla and 5-marla plots end up costing PKR 6,050,000 and PKR 3,850,000.
Comparison with other phases
If we compare Prism IX’s property rates with those of DHA 9 Town, we see a considerable price difference. Please note that DHA 9 Town is not a proper DHA phase but a dedicated development meant primarily for the families of Pakistan Army shuhada. It doesn’t feature residential plots bigger than 10 marla. The comparison is pertinent because DHA 9 Town is the closest DHA project near this phase and it has also positively affected property rates in blocks that lie close to it.
The average rate of 10-marla residential plots in DHA 9 Town is PKR 10,500,000, while the average market price of 8-marla plots is PKR 6,750,000 and that of 5-marla plots is PKR 5,500,000. The development charges for these plots have been paid and are included in the cost.
In terms of development status, Prism 9 can also be compared with Phase VII but, in terms of location, Prism IX a lot more attractive. Moreover, Prism 9 is shaping up to be the most systematically planned and managed DHA phase in Lahore.
Making investment decisions
If you look at the map of Phase IX, blocks that fall closer to DHA 9 Town enjoy a certain edge. Construction of the main roads that lie close to these blocks is likely to begin soon and will benefit investors. Blocks that lie closer to DHA 9 Town will benefit more from this development, primarily because they have better access to other parts of DHA.
Maakson is looking to complete the assigned work in about a year and a half. Meanwhile, it is also expected that other contractors get a go-ahead from DHA to work on remaining lanes and streets. According to experts I have talked to, road work in Prism 9 will be pretty much in shape in another three years. Simply put, investors of Prism IX can expect over 50% profit in the medium term.
In the investor-rich market, smaller plots almost always offer better returns. DHA has recently seen genuine buyers more interested in plots smaller than 1 kanal. Consequently, the price appreciation recorded for 10-marla and 5-marla residential plots lately has been higher than that of larger plots. So investment in 10- and 5-marla residential plots in certain blocks can be very promising.
For this purpose, Block R is worth considering as it is primarily dedicated to smaller plots. Please note that small cuttings of 10-marla residential plots are also available in the rear ends of certain blocks. For those interested in 1-kanal or 2-kanal residential plots, Blocks A, C, F, P and Q are worth looking into.
If you need to know more, simply leave a comment below and I’ll get back to you.