blog

From Bahria Town’s Garden City to DHA’s Serene City – the property owners’ perspective

Real Estate Trends
3 min read | Samra Zulfiqar  | August 2, 2017

Bahria Town is currently busy resolving issues related to its projects in Lahore and Islamabad. Protests have been held by those affected by Bahria Town Sector F in Lahore. We are yet to find out how over 5,000 of those affected by Bahria Town’s Garden City (Zone V – IX) in Islamabad, which has now technically become DHA Serene City, will react if their demands are not fulfilled. To give you a better understanding of the Garden-City issue, here is quick rundown of what actually happened there.

Background

Bahria Town launched Garden City back in 2013 on a two-year payment plan. The prices of the plots were high since Bahria claimed that the project has been fully developed and the property owners can start construction of their homes in Garden City right away. In 2015, without any proper announcement, Bahria Town handed over Garden City to DHA as a compensation to DHA Valley, for which it received several billions from the DHA. By then, Bahria Town had also received full payments for these plots in Garden City.

Concerns of property owners

Initially, the property owners were told that with DHA taking over Garden City, property rates here will spike. Shortly after DHA erected “Serene City” board by removing Garden City’s board, property transfer office here was also shut down for an indefinite period. The latest update in this regard is that property owners, who have reached an approximate number of 5,000, have been asked by Bahria Town to submit PKR 3,500,000 in terms of development charges.

Why impose development charges?

The launching rate of Garden City plots were high at PKR 6,000,000 and PKR 4,000,000 for 1-kanal and 10-marla residential plots, respectively. Bahria claimed that this was because these were developed plots. In other words, the development charges were included in the initial price. Now when DHA took over – no formal announcement of which was made by any of the two developers – Bahria Town imposed development charges at an extremely high rate of PKR 3,500,000 and PKR 2,500,000 for 1-kanal and 10-marla plots, respectively. Why they have asked for the development charges again is the question that bothers the property owners too.

Compensation for the bounced check?

As a compensation to DHA Valley – a project that faced delayed development work as well as litigation – Bahria Town offered DHA a cheque of PKR 62 billion, which bounced. The amount was to be paid anyway. It appears that by imposing and collecting development charges on Garden City’s property, Bahria Town is looking to generate that income for the DHA.

The reaction

Those affected aren’t willing to pay development charges primarily because they purchased developed plots, with the extra charges included in the introductory rates. They rightly think it is unfair. To counter this, the affectees formed a core committee to sort their issues out with Bahria Town’s management.

The outcome of the persistent demands of the property owners presented to the management is that the developer has apparently agreed to accept their terms. According to the representatives of the core committee, Bahria Town has asked them to wait until August 16, as they intend to share some good news by then. In addition to that, Bahria Town’s management has also agreed to waive off development charges.

What to expect now?

I have learnt that DHA has renamed all blocks and streets of Garden City, and now new boards have been erected reading DHA-assigned names for these sectors. If you pass through GT Road opposite the entrance of DHA Phase II, you will see boards for Serene City instead of Garden City. From this development, we can safely assume that DHA and Bahria Town are now in advanced stages to finalise their agreement for this project; an announcement is predicted before August 16.

If Bahria Town does not collect development charges from property owners, what will it actually offer to DHA? A project that was sold out many years ago and now belongs to individual owners? Meanwhile 5,000 people wonder if they will get possession of their property in the near future and whether their investment will pay them off as per their expectations.

I am left to wonder who won what out of this deal. If you are on the same page with me or have feedback on this article, sound off in the comment section below.

Share
Samra Zulfiqar
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.

  2. Very well put in by Zameen team. I am also the affectee of Garden City and dont know the future of my hard earned money. Just to add on that Bahria is now playing the delaying tactics and we the affectees are more concerned and will go to any extent in a civilized manner to get our own money. Well written article samra appreciate that Zameen is giving honest prespective of the things.

  5. Dear Samra Zulfiqar

    please highlight the issues of Bahria Town Phase 8 sector F. Why is it so much delayed. what are the issues?

    I have also heard that the ring road project for Rawalpindi is also cancelled. if this is true then should we consider BT Phase 8 a failed and dead project?

  6. Is it safe to invest in bahria Town garden city or still there is a chance that garden city will be merged into DHA

  7. is it safe to invest in bahria town or still there is a chance that they will merge garden city with DHA

  9. Thank you Samra and Zameen for putting this up. I am one of the affectees of Bahria Garden City, a non resident Pakistani who remitted and invested my hard earned money in Bahria Garden City years ago. I invested in another property that’s non-Bahria and got stuck again. Now I have all my assets in the shape of 02 small properties in Pakistan with zero return. Infact, I can’t even get back any money from both my investments in Islamabad and Karachi. I needed some money recently, but can’t sell anything.
    We bring our hard earned money to Pakistan rather than investing in Dubai or somewhere else. The results we get are shameful and horrible.
    4 million invested in 2013. Yield today? Zero. Cannot even sell it at loss.

  10. All victims of Bahria Town Garden City / DHA Islamabad are notified that on 21st August i.e Monday, at 12 P.M , we gather at DHA Phase-1- Main Gate Near Fauji Foundation Hospital Round about (Right on GT Road) to Record a Peaceful protest for our Lawful rights – Please Join us with families and friends

    please send message to Core Committe @ 0333 3000468 (Arshad Rasheed) to join

    1. sir assalam o alaikum everybody
      need updates on GARDEN CITY BAHRIA and DHA fiasco
      regards
      dr MUJAHID

  11. All victims of Bahria Town Garden City / DHA Islamabad are notified that on 21st August i.e Monday, at 12 P.M , we gather at DHA Phase-1- Main Gate Near Fauji Foundation Hospital Round about (Right on GT Road) to Record a Peaceful protest for our Lawful rights – Please Join us with families and friends

  12. All victims of Bahria Town Garden City / DHA Islamabad are notified that on 21st August i.e Monday, at 12 P.M , we gather at DHA Phase-1- Main Gate Near Fauji Foundation Hospital Round about (Right on GT Road) to Record a Peaceful protest for our Lawful rights – Please Join us with families and friends

    Text 0333 3000468 to join the Core Comittee group

  13. I am agreed to start protest and fight for our right
    After the decision from Supreme Court we can hope to get justice

  14. I bought a plot in Garden City in sector VI when the it was being sold at 40 lakh profit during property boom. I wanted to built a house after retirement. I am already retired and in pakistan but can not build a house as the property has been transferred to DHA without my consent. How can Bahria management decide the fate of my property without consulting me. It has been almost 5 years, with my saving stuck in the Garden city. Is Bahria going to give us any surcharge? as you mentioned, the price of the plot included development charges. Now Bahria Town management asking for 35 lakh in development charges. This is plain ‘Gunda Gardi’ we will fight for our rights and will succeed inshaallah.

  15. I paid all installment remaining last installment.
    5-Million+ hanging since 2-years. Is there any news if we will be assigned positions soon.

  16. I am totally agreed what is wrote above…and join hands in hands with all effectees of Bahria Garden City…They have no right to make deals on our properties without our agreement. Kindly put more efforts to enforce Bahria management to facilitate all the effected persons as per their choice and in accordance with the current market rates.

    Regards
    Imran
    Garden City Project Plot Owner

  17. So what is the latest situation now (in October 2017)? Are we (the plot owners) get the possession of our plots and will be able to sell those freely?

  18. Thanks Ms. Samra Zulfiqar for your input on this matter. Could you please update us on the latest status of this matter. Will be (the plot owners) be able to get the possession of our plots & able to sell those?

  19. Thanks Ms. Samra Zulfiqar for your input on this matter. Could you please update us on the latest status of this matter. Will we (the plot owners) be able to get the possession of our plot & able to sell it?

  20. I am owner of a plot in the Bahria town Garden city project and have absolutely no information about what is the present position in the case. I have heard nothing from Bahria town. Could you please help?

  21. I am also plot owner in the Bahria town Garden city project and have no newly information about what is the present situation in the ase i have heard nothing from Bahria town could you help me in this regard

Comments are closed.

Get the Zameen App

Buy and Rent Property faster and better
using our app.
Scan the QR code to
get the app

Sliding Sidebar