In This Post
– Top areas to buy plots in Lahore
– Top areas to buy houses in Lahore
– Top areas to rent houses in Lahore
– Major developments in Lahore
Buying real estate has always been considered one of the most lucrative investment options for those who want to earn maximum profits on their savings without worrying too much about the risk of losing money. While there are a number of factors that affect the real estate industry, the performance of the Lahore property market during 2019 signifies that it is one of the most reliable markets in Pakistan in terms of investment.
For our annual report, we have compared prices seen in 2018 with those documented in 2019, to help you get an idea of how property trends have transitioned in the past 12 months.
Overall, the Lahore property market showed a stable growth with nominal to moderate price hikes during the past year. With a number of new housing societies emerging across Lahore and several major development projects currently underway, the real estate market in Lahore continued to thrive by drawing the attention of investors and regular home buyers alike.
Most Popular Areas with Plots for Sale in Lahore
DHA, Lahore
The upscale neighbourhood of Defence Housing Authority (DHA) appeared to be the first choice for those looking to buy plots, according to the buying trends of plots in Lahore.
DHA, Lahore, is regarded as one of the most trusted and secure projects to invest in the city. Therefore, owning a property in this area is considered akin to having cash in hand, which is another factor that adds to its popularity. It’s divided into different phases that are further sub-divided into blocks. While some of these phases are well-established and well-populated, others are currently in different stages of development.
Phases 1, 2, 3, and 4 are the oldest phases in DHA, Lahore. They are located in proximity to the Main Boulevard and are fully developed. DHA Phase 5 and Phase 6 are among the most well-planned and well-developed localities in the area; both are situated along Lahore Ring Road. The average prices of plots in these phases is relatively high owing to their development status. The development work in DHA Phases 7 and 8 is quickly nearing completion. Meanwhile, the construction work in Phase 9 is currently underway. The average prices in this neighbourhood are comparatively low as per the pace of development and prevailing market conditions.
From an investment point of view, there hasn’t been a major hike in the average prices of plots in Defence Lahore during 2019.
The average prices of 5 marla plots in DHA, Lahore, saw a drop of 9.09%. This dip in the rates can be attributed to two major factors: a) development in newer phases where small plots are available for sale at lower rates, and b) the low demand for such plot sizes in the area. On the other hand, prices of 10 marla plots in DHA, Lahore, only witnessed an almost negligible drop of 1.33% compared to 2018, whereas the market price trend for 1 kanal plots in the area increased by 3.45%.
On average, a 5 marla plot for sale in DHA, Lahore, is priced at PKR 50 lakh. The price of a 10 marla plot in the area averages at PKR 74 lakh, whereas buying a 1 kanal plot in Defence costs about PKR 1.5 crore.
Bahria Town Lahore
The meticulously-planned gated community of Bahria Town Lahore ranked second on the list of most popular areas to buy plots in the City of Gardens, as per user behaviour observed on Zameen.com during 2019.
The mega real estate project enjoys a stellar reputation in Lahore property market. Bahria Town boasts an impressive infrastructure, a well-planned network of roads, beautiful green spaces, uninterrupted electricity supply and other luxurious facilities promising a high standard of living among its residents. The secure environment and emphasis on ultra-modern lifestyle have made Bahria Town Lahore one of the finest residential projects in the bustling metropolis.
Bahria Town Lahore is situated at a distance of approximately 17 km from Thokar Niaz Baig in the proximity of Raiwind Road, Canal Road, and Multan Road. It is divided into six sectors namely A, B, C, D, E and F, with each sector further divided into various blocks. While some of these blocks are currently being developed or are awaiting possession, the others are well-established and feature a number of well-constructed houses, bustling commercial areas, international chain restaurants and much more.
Overall, the prices of plots in Bahria Town Lahore showed positive signs of growth during 2019.
The cost of 5 marla plots in Bahria Town Lahore went up by 9.89%, compared to 2018, owing to the high market demand of the concerned property size. Moreover, possession for 5 marla residential plots has also been handed over in almost all blocks across the project, with a number of houses already being constructed in the area.
The price of 10 marla plots in the area remained almost the same; the prices of 1 kanal plots in the gated community, however, increased by 8% during the past year. The main reasons behind this growth are the high demand of 1 kanal residential plots among investors, the rapid pace of infrastructure development and the increasing popularity of Bahria Town as one of the best places to live in Lahore. The possession for 1 kanal plots in Ghazi and Sikandar Blocks was also handed over in the last year.
On average, a 5 marla plot in the area is priced at PKR 50 lakh. Meanwhile, buying a 10 marla plot in Bahria Town Lahore costs about 70 lakh on average. The price of 1 kanal residential plots in the housing society is averaged at PKR 1.35 crore.
Other Areas
As per the data depicted in the table above, other popular areas to buy plots in Lahore include Bahria Orchard, Lake City, DHA 11 Rahbar, Khayaban-e-Amin, LDA Avenue, State Life Housing Society, Fazaia Housing Scheme and Central Park Housing Scheme.
Bahria Orchard, the latest housing scheme of Bahria Town in Lahore, ranked third on the list of most sought-after areas with plots for sale in the city. Situated close to Raiwind Road, Bahria Orchard Lahore is divided into 4 phases and offers 5 marla, 8 marla, 10 marla and 1 kanal plots for sale.
Lake City Lahore, another popular area to buy plots in Lahore, is also located alongside Raiwind Road. The gated community covers about 2400 acres of land and comprises eight sectors offering 5 marla, 8 marla, 10 marla, 1 kanal and 2 kanal plots for sale. The possession of 10 marla plots in the residential scheme’s M3 Extension was also announced during the last months of 2019.
LDA Avenue Lahore is located near the outskirts of the city but can be easily accessed through Raiwind Road. It is spread across 2000 acres and is divided into 11 blocks. Plots for sale in the well-planned society are available in the sizes of 5 marla, 10 marla and 1 kanal. Fazaia Housing Scheme on Raiwind Road is also one of the most sought-after areas in Lahore to buy plots. The well-developed residential scheme is divided into two phases, which are sub-divided into different blocks. The Lahore Ring Road interchange leading out to Fazaia Housing Scheme 1 has also been named Fazaia Interchange after the society.
Most Popular Areas with Plots for Sale in DHA, Lahore
Defence Phase 7 ranked first on the list of most popular areas with plots for sale in DHA, Lahore, according to the total number of searches conducted on Zameen.com for the Lahore property market during 2019.
Situated alongside Barki Road and adjacent to Defence Raya Golf Resort, DHA Phase 7 is a relatively new and valuable addition to the Lahore real estate market. It is divided into Blocks P, Q, R, S, T, U, V, X Y, Z-1, and Z-2. The development work in the area is almost done, possession has been handed over and construction of houses is already underway.
The posh locality boasts a network of well-paved roads, underground electrical wiring, civic amenities such as water and gas, power backup and secure environment. The master plan for Phase 7 also includes parks and green spaces, mosques, schools, hospitals, upscale commercial areas and recreational spots, spurring its popularity as one of the best places to invest in DHA, Lahore.
The price of a 5 marla plot for sale in DHA Phase 7 starts at around PKR 42 lakh while buying a 10 marla plot in the area will cost you approximately PKR 60 lakh at the very least. You can buy 1 kanal plots in DHA Phase 7 for the starting price of PKR 80 lakh.
DHA Phase 9 Prism appeared to be the second most sought-after locality to invest in Defence.
A subdivision of DHA Phase 9, Phase 9 Prism is located near Allama Iqbal International Airport and is surrounded by prominent roads like Lahore Ring Road, Bedian Road and Ferozepur Road. The locality comprises 16 sectors from Blocks A to R and covers around 40,000 kanal of pristine real estate, making it the largest phase in Defence, Lahore.
Compared to Phase 9 Town, another subdivision of DHA Phase 9, Phase 9 Prism is still in the early stages of development. In fact, the area might require until 2021 to be fully developed and ready for possession. Given its status of development, prices of plots in this phase are significantly low, which is also one of the main reasons why those looking for long-term investment options have shown interest in Phase 9 Prism.
The prices of 5 marla plots in DHA Phase 9 Prism start at PKR 32 lakh, while the starting price of 10 marla plots for sale in the area is around PKR 55 lakh. You can buy a 1 kanal plot in Phase 9 Prism for the lowest price of PKR 72 lakh.
These sought after localities in DHA, Lahore, were followed by Phase 6, Phase 8 and Phase 9 Town.
While Phase 6 is home to Defence Raya Golf Resort and Country Club, the relatively new Phase 8 is popular among genuine buyers due to direct link to Lahore Ring Road and the lucrative commercial market of Phase 6 just across the road. Moreover, the possession of residential plots in some blocks of Phase 8 is also ready to be handed over. Phase 9 Town is also considered an ideal place for long-term investment, owing to its development status.
It is important to mention that the prices of plots in each phase varies with their location and block.
Most Popular Areas with Houses for Sale in Lahore
DHA, Lahore
Buying a house in DHA is considered one of the top choices among the residents of Lahore – and that trend was pretty evident during 2019 as well.
DHA, Lahore, earned the top spot on the list of most popular areas to buy houses in the City of Gardens, as per the search trends on Zameen.com.
One of the main perks of living in DHA, Lahore, is that it is easily accessible from different parts of the city through the Lahore Ring Road. It is also home to some of the best educational institutes in the city, including the Lahore University of Management Sciences (LUMS).
Some of the other facilities available in Defence Lahore include beautifully constructed mosques, state-of-the-art medical facilities, commercial areas featuring retail outlets of international and domestic brands, multi-cuisine restaurants and coffee shops, high-end fitness centres and spas, sports facilities and much more.
All of these factors have contributed towards making Defence Housing Authority an ideal location to buy real estate in Lahore.
Compared to 2018, prices of 5 marla houses in DHA, Lahore, saw a small decrease of 6.45%, owing to the development of new projects as well as lower demand in the market. The buying rates of 10 marla homes in the area witnessed a 5.56% increase during 2019, indicating the growing demand for this property size among homebuyers and investors alike.
You can buy a 5 marla house in Defence Lahore for PKR 1.45 crore on average, whereas 10 marla houses for sale in the area have a price tag of PKR 2.85 crore. The average price of 1 kanal homes in Defence Lahore is PKR 4.9 crore.
Bahria Town Lahore
The title of the second most popular area to buy houses in Lahore went to the mega-real estate project of Bahria Town.
The housing society is considered the perfect example of outstanding planning and attention to detail. Houses in Bahria Town Lahore are constructed as per the approved bylaws and have to follow standard design guidelines outlined by the management.
Living in Bahria Town Lahore means easy access to a number of lavish facilities. For instance, residents enjoy a load-shedding free lifestyle since the housing society has its own grid stations as well as a network of underground electric cables. Moreover, the stunning Grand Jamia Mosque, which is believed to be the largest mosque in Pakistan in terms of indoor capacity for worshippers, is also situated in Bahria Town Lahore.
During 2019, the prices of 5 marla houses in Bahria Town Lahore experienced a hike of 9.52%. This is in congruence with the surge in the cost of 5 marla plots in the area, as discussed above. The increase can also be attributed to the growing demand of well-constructed yet reasonably-priced houses in the area. The prices of 10 marla homes in the area remained the same, whereas the average rates of 1 kanal houses in Bahria Town Lahore saw a minor decrease of 2.38%.
For those interested in buying houses in Bahria Town Lahore, a 5 marla unit in the area is available at the average price of PKR 1.15 crore. The price of 10 marla houses in the housing society is PKR 1.9 crore, while you can buy 1 kanal alternative in Bahria Town Lahore for PKR 4.1 crore on average.
Other Areas
These top locations with houses for sale in Lahore were followed by prominent residential schemes including Johar Town, State Life Housing Society, Allama Iqbal Town, Wapda Town, Paragon City, Sabzazar Scheme, Askari and Al Rehman Garden.
The posh housing society of Johar Town, which ranked third on the list of most popular areas to buy houses in Lahore, is located alongside Canal Road. It consists of two phases, both of which are fully-developed and subdivided into further blocks featuring 5 marla, 10 marla and 1 kanal residential units. Given its prime location and world-class amenities, this area has always attracted homebuyers in the city.
State Life Housing Society, Lahore, also drew the attention of property seekers in 2019. The residential scheme is divided into Phases 1 and 2. While Phase 1 is fully established, the development work in Phase 2 is currently underway. State Life Housing Society is located near Lahore Ring Road. If you’re looking to buy a house in the area, Phase 1 offers 5 marla, 10 marla and 1 kanal units for sale. Furthermore, Wapda Town, another top area to buy houses in Lahore, is located near M-2 motorway. It is spread across 2124 acres and consists of Phase 1, Phase 1 Extension and Phase 2. While Phase 1 and Phase 1 Extension are located on the eastern side of Khayaban-e-Jinnah, Phase 2 is situated in the west. The society boasts 5 marla, 10 marla, 1 kanal and 2 kanal houses for sale.
Most Popular Areas with Houses for Sale in DHA, Lahore
In terms of most popular phases to buy houses in DHA, Phase 6 appeared to be the top choice among those looking to invest in the Lahore property market during 2019.
Located between Bedian Road and Barki Road, DHA Phase 6 enjoys a prime location in the housing scheme. The posh neighbourhood is surrounded by Phase 5 towards it west, Phase 7 to its east, Phase 8 to its north and Phase 9 to its south. Phase 6, which is bigger than Phase 5, also provides easy access to the Main Boulevard and Lahore Ring Road, conveniently linking it to other parts of the city as well. Its location and infrastructure are two of the main reasons why investors have been showing interest in this locality.
DHA Phase 6 is divided into Blocks A, B, C, D, E, F, G, H, I, J, K, L, M, N, and CCA. Its layout includes beautifully constructed mosques, water filtration plants, well-maintained parks, renowned educational institutions, commercial areas, restaurants, plenty of parking spaces, medical centres and sports facilities. Some of these facilities and landmarks have already been constructed and are fully functional. Underground electric cabling has also been laid down in the locality.
One of the key features of DHA Phase 6 is Defence Raya Golf & Country Club, which is situated in Block M. It comprises an 18-hole golf course, a tennis court, a fitness centre and an indoor swimming pool among other amenities. The renowned Pakistan Kidney and Liver Institute and Research Centre is also situated in this phase, adding to its popularity in the Lahore property market.
The starting price of 5 marla houses in DHA Phase 6 is PKR 1.4 crore. Meanwhile, buying a 10 marla home in the area can cost you about PKR 2.2 crore at the very least. The price of 1 kanal houses in DHA Phase 6 starts at PKR 3.25 crore.
The fully-developed DHA Phase 5 also drew the attention of users on Zameen.com during 2019.
Being one of the most populated phases in DHA, Lahore, Phase 5 is quite sought-after in the real estate market. It comprises blocks A, B, C, D, E, F, G, H, J, K and L, all of which boast wide, well-carpeted roads, beautiful green spaces, commercial areas and much more. However, the highlight of this locality is its ideal location near Lahore Ring Road.
The reputable Lahore University of Management Sciences (LUMS) is one of the most prominent features of DHA Phase 5. The locality also houses schools, health care facilities, sports complexes, fitness clubs, salons, fine-dining restaurants and grocery shops. Underground cabling and secure environment are also some of the factors that attract buyers to this phase.
Buying a 5 marla house in DHA Phase 5 costs PKR 1.6 crore, at the very least, whereas the starting price of 10 marla houses in the area starts from PKR 2.6 crore. The cost of 1 kanal houses in DHA Phase 5 can go as low as PKR 3.7 crore.
Phases 8, 4 and 3 in DHA, Lahore, also generated a lot of interest among property seekers in the city. While Phase 8 is one of the newly developed phases, Phase 4 and 3 are among the oldest neighbourhoods in the residential scheme.
Most Popular Areas with Houses for Rent in Lahore
DHA, Lahore
Defence Housing Authority led the pack as the top area to rent houses in Lahore in 2019, as per the search trends for rental properties in the city.
The rental prices of 5 marla houses in DHA, Lahore, hover at PKR 55,000 on average following a 2.8% hike, compared to 2018. The rent of 10 marla houses in the area increased by 11.76% to PKR 95,000 per month on average. On the other hand, renting a 1 kanal homes in the neighbourhood costs approximately PKR 1.65 lakh after witnessing a growth of 3.13%.
These price trends showed a high demand for rental properties, especially 10 marla houses, in the upscale housing society.
Bahria Town Lahore
Meanwhile, Bahria Town Lahore scored the second position on the list of most popular areas with houses for rent in Lahore.
The rent of houses in Bahria Town Lahore saw a moderate hike compared to the previous year. You can rent a 5 marla house in the residential society for PKR 40,000 on average after a 5.26% increase in prices. The rental prices of 10 marla homes in the area can be averaged at PKR 65,000 following a 3.17% increase. Renting a 1 kanal house in Bahria Town Lahore costs around PKR 1.3 lakh after an 8.33% hike.
Johar Town, Wapda Town, Askari, Gulberg, Paragon City, Model Town, Allama Iqbal Town and State Life Housing Society are also among the top areas to rent a house in Lahore.
Major Developments in Lahore
In 2019, Lahore ranked 201st on the World Crime Index, beating prominent cities such as London, Washington D.C., San Francisco and Rome on the index. This ranking can not only help boost tourism in the city but also have a positive impact on Lahore property market.
These are some of the other important developments in Lahore that are worth mentioning.
- Orange Line Metro Train
- The Southern Loop of Lahore Ring Road
- Lahore Safe City Project
- LDA Plantation Drive
Here is a brief overview of these developments.
Orange Line Metro Train
The highly-anticipated Orange Line Metro Train recently completed its trial run and is expected to be functional by March 2020. Also referred to as OLMT, it is the first-ever mass-transit electric train in Pakistan that aims to tackle the increasing traffic problem in Lahore while making the intracity commute easier for its residents.
The OLMT has a total of 27 train sets along with 5 bogies in each train. It can carry 250,000 passengers on a daily basis. Moreover, it will have a total of 26 stations and will touch almost all of the major areas in the city.
The Southern Loop of Lahore Ring Road
In March 2019, the government of Punjab approved the construction of Lahore Ring Road Southern Loop-III (SL-III), an 8km-long project stretching from Adda Plot (Raiwind Road) to Maraka (Multan Road).
The government has also begun the process of land acquisition for Lahore Ring Road’s Southern Loop-IV (SL-IV). This portion, around 17km-long, will link Multan Road to Lahore-Karachi motorway and Sharaqpur, while crossing the River Ravi.
Both SL-III and SL-IV are expected to be completed in 2020.
The first two divisions of the Lahore Ring Road Southern Loop, SL-I (9.35 km) and SL-II (13.05km), were opened to traffic in 2017. These two stretches start from Kamahan (DHA Phase V) and end at Adda Plot.
Given the positive impact of Lahore Ring Road on the property prices in Lahore, the opening of the third and fourth loops is also expected to lead to an influx of buyers in most parts of the city.
Lahore Safe City Project
The Lahore Safe City project is one of the praiseworthy initiatives undertaken by the government. It aims to improve the quality of life in Lahore by reducing crime rates and traffic violations while improving incident tracking and police response time. The project also spurred the creation of Punjab Safe Cities Authority (PSCA) and Punjab wide Police Integrated Command, Control and Communication (PPIC3) Centre.
The Lahore Safe City Project utilizes city-wide infrastructure to improve traffic management while overseeing transparency and automation in police operations. To put it simply, this initiative is aimed at making Lahore one of the safest cities in Pakistan.
LDA Plantation Drive
Earlier in 2019, the Commissioner of Lahore launched a tree plantation drive in the city as part of the federal government’s Clean and Green Pakistan project. In this regard, LDA gave nearly 150 private housing societies in Lahore and Sheikhupura a target of planting 300,000 new saplings to reduce the environmental pollution in the region as well as improving the air quality.
About 5,000 tree saplings will also be planted around Lahore Ring Road under the initiative.
Conclusion
Overall, the current prices of properties in Lahore indicate it’s a buyer’s market. While there have been some fluctuations in property prices across the board, owing to the development of new housing schemes and prevalent market conditions, the Lahore property market remained largely stable in 2019.
Dips in the prices of plots were recorded in a few areas, but the effect wasn’t substantial. That said, most areas showed positive growth. Similarly, the prices of houses in Lahore also saw a moderate increase, painting a picture of a stable property market heading in the right direction.
Whether you are looking to buy or rent property, now’s the time. DHA, Lahore, continued to be the most sought-after area in the city in all regards. The housing society was followed closely by Bahria Town Lahore, which performed quite well in comparison to 2018.
Zameen.com CEO Zeeshan Ali Khan said, “Legislative efforts to ease the bylaws that support high-rise development will help major cities like Lahore overcome shortage of housing units. More vertical cities will open up more possibilities of investment opportunities, which, in turn, will help with the success of the property sector of Pakistan even more.”
“High-rise towers are the future of urban development and vertical communities hold the key to solving the problems of overpopulation and overcrowding. If these changes catapult the proliferation of high-rise buildings in Lahore, there’s little to no reason for concern as the city has a robust infrastructure to support that kind of massive expansion.”
Addressing the Southern Loops III and IV of the Lahore Ring Road and the Orange Line Metro Train, Khan stated such mega development projects will help boost the secondary market of the city.
Moreover, he pointed out how Pakistan’s real estate was no longer a short-term market, thanks, in particular, to the revised taxation system.
“Sales activity may have slowed down a little bit in the past, but transactions have started to pick up the pace. We’re headed in the right direction. Most deals involve genuine buyers and investors who are looking for homes or investment for a longer period. It’s no more about easy money; people are in it for the long haul.”
Khan also weighed in on the positive impact of the incumbent government’s measures that have helped attract foreign investors and developer groups to Pakistan. He cited the example of “Eighteen,” which is a joint venture of Egypt’s Ora Development Group and Pakistan’s Saif Group.
“The ongoing reforms have increased foreign direct investment. Like Eighteen, we can expect more international players entering the Pakistani real estate market in the coming years.”
While Khan appreciated the changes, he stressed on the importance of improvement and regulation in the country’s property sector.
“Pakistan needs stronger regulations to bring stability and sustainability in the real estate industry. There is a huge demand from low-income groups that requires the attention of authorities,” he continued.
In this regard, Khan appreciated the Naya (new) Pakistan Housing Programme as a much-needed move for the country.
“It’s a brilliant effort. The target of building five million houses in five years may be ambitious, but even if we achieve 20 percent of it, that would be a great start. It would be a huge success, in my opinion.”
Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Zameen.com, and not representative of actual real estate transactions conducted in Lahore. All prices quoted on the portal are subject to change without notice.
