The property market of Pakistan has witnessed many new real estate developments in recent years. By doing a little bit of research on a credible property portal like Zameen.com, you will come to know that almost every major city across Pakistan is undergoing significant property developments. Regardless of the scale of a project, every new real estate scheme brings with it property investment opportunities for local as well as overseas investors. So, if you are also planning to invest in any new property development taking place in any major city of Pakistan, then you should be aware of the difference between a plot and a plot file. To make things less complicated for you, we are going to shed light on some of the key facts that clearly differentiate plots from plot files.
Difference between a Plot and a Plot file
Let’s start with the definition of both of these terms
What is a Plot?
In the world of real estate, the term plot means a piece of residential or commercial land that is meant to be owned by a person or a legal entity. Unlike a property file, it is numbered, physically marked and mapped out in a particular society or real estate scheme recognised by the governing authorities.
Quick Tip: A real estate project that’s almost complete is usually considered more feasible for investments. It is where possession is granted and you can easily started with the construction on your owned property. However, development charges might be levied on you, the amount of which depends on the regulations laid down by the concerned development authority of that particular area.
What is a Plot File?
It is a real estate terminology, which serves as a documented promise of a piece of land have a certain area size in the planned or existing housing society or a scheme to a particular property investor. Neither it has any physical existence nor is it recognized or certified by the local development authorities. However, property files are given a specific number and are converted into an actual existing plots after they have gone through the phase of balloting of the concerned housing society or real estate scheme.
Quick Tip: One thing that you need to bear in mind while buying a file is that its price is greatly dependent on the property market condition and may fluctuate (go up and down) sharply. In the light of general practices, every property investment before possession is generally treated as a file.
Should You Invest in a Plot or a Plot File?
Buying a property in Pakistan is a huge investment – possibly the biggest investment of your life. When choosing between a plot and a property file when going for a real estate deal you should keenly judge both of these options. A plot is not only available in newer societies but also in older ones. It is a piece of land that is numbered as well as marked in most of the cases. Prospective buyers of a plot located in any particular housing societies in Pakistan can easily visit the site they intend to invest.
However, this is not the case in a plot file. As compared to the plot, property files are less expensive and have less legalities involved in its process of ownership. Taking Bahria Town Karachi for example, the plot file of a 1 kanal plot available there starts from as low as 6 lakh. However, the lowest asking price of a 1 kanal plot is 28 lakh. The Investment factor is a key difference between a plot and a plot file, which might also impact your decision while you struck a real estate. Though plot files may cost you less but in most of the cases their sale and purchase is not monitored by the development authorities.
Affidavit
When a landowner surrenders their land/property file in favour of the project developers or development authorities overseeing that particular neighbourhood, then, in such circumstances, an affidavit file is issued. An affidavit file serves as an open letter for a property as a result of which it can be transferred in the name of any particular person or entity buying it. After the property is successfully transferred in the name of the buyers then they are issued with an intimation letter notifying them about the completion of transferring process.
Balloting
Balloting is a real estate term given to the process of assigning plot numbers in a particular real estate project to the possible buyers. Basically balloting is a draw carried out between the applicants of plots and plot files in a proposed property development. There are actually two types of balloting: one is known as a booking ballot in which applicants booking properties on instalment basis take part and the other one is known as plot ballot in which balloting is carried out between buyers who are willing to pay full amount to own a property as a result of which, map with physical allotments is issued.
Since, now as you are aware of the significant factors highlighting the difference between a plot and a plot file, where are you planning to invest in Pakistan? There are many on-going real estate projects across Pakistan, some of the most significant ones include Gwadar Golf City, Top City-1 Islamabad, DHA Gujranwala and DHA Multan. These projects offer you both plots and property files. Since most of these real estate ventures are in their initial stage of development, so they currently offer more property file options than actual plots.
So, in which one of the aforementioned societies sounds like a good investment option? Let us know by sending us an email at blog@zameen.com. You can also contact us at the same email address, if you have some queries or suggestions regarding the topic that we have discussed in the above blog.Subscribe to Zameen Blog – Pakistan’s best real estate blog – to catch more interesting pieces about real estate developments taking place around the country.
