Looking to cash in on the investment buzz? Pick Prism IX!

For many property buyers and investors having short-term investment plans, the best option in Defence Housing Authority (DHA) is Prism IX. And that’s despite the fact that the phase has been dropping in ranks on Zameen Search Trends since March 2018.

Some believe that the drop in demand for Prism IX property is primarily due to the fact that market conditions haven’t really been receptive for short-term traders. Now, with more people looking to buy property in DHA Lahore Phase IX once again, does it mean that time for getting returns on short-term investment is close? Let’s find out!

A little help from Zameen stats

As mentioned in our previous blogs, most of the active buyers in almost all prime cities were genuine buyers. Our trends from July 2018 presented a similar picture, where the demand was noticed the highest for Phase VIII, followed by Phase VII, VI, and IX in that order.

According to Nawaz Ghani of Ghani Estate, property rates in Phase VIII are too high to suit the range of many investors. As these investors only have one thing on mind, i.e. return on their investment (ROI), they perhaps will not like to limit the number of potential buyers interested in their investment by opting for plots that are already priced at their optimum range. So, according to Nawaz, Prism IX will see the immediate impact as soon as the market conditions become favourable for investors.

The same was observed in the past, especially when property transaction volume goes up in the DHA, we see Phase IX Prism at the top ranks on Zameen search trends for plots in Lahore.

What’s up right now?

Sidra Chaudhary of Kings Properties reveals that most of the active buyers and potential clients she is in touch with are looking at property having DC value lower than PKR 5 million. This is the limit set earlier by the Federal Board of Revenue for non-filers looking to buy property.

Despite the debate of people opting to remain non-filers by choosing to invest in property cheaper than PKR 5 million, it is also observed that the price range also suits the end users, who happened to be the dominant buyers during the last couple of years. So, investors choosing property in this price range only says that they are reducing their risks of making an unwise investment during such times.

But in DHA Prism IX, the DC rate of all plots size, with the exception of 2-kanal plots, is lower than PKR 5 million. Ideally, buyers should opt for the 1-kanal plots due to them being the prime plot category in the DHA projects, but as told by Chaudhry, that’s not the case. Prism IX is all hot for 5-marla residential plots. Depending on the respective budget, buyers are seen choosing between the options in Blocks J, K, and R.

What are big-shot investors busy with?

Well, investors known for buying property in bulk have started to wake up to the call of positivity expected in the market. In this regard, inquiries via phone have also started off where most of them are seen checking out the available options in Phase IX. None is surprised on why the demand is picking up for this phase as many agents and consultants already know that Prism is next in line to experience the growth in rate it truly deserves.

Any details on expected possession?

With increasing anticipation of possession being granted in the next one or more years, many believe that returns on their investment in the medium term will be even more rewarding. Col Rana Saqib of Saqib Real Estate believes that it will take DHA at least two more years to start offering possession in Prism IX, as he believes that the phase is too big to be developed any sooner.

Some consultants have pinned their hopes to seeing DHA announce the property possession of some blocks, essentially those located close to DHA IX Town, towards the start of 2019. That can be made possible if DHA decides to offer block-wise possession while continuing with the development work in the remaining blocks. In that case too, the developer needs to have completed 100% work in three or more blocks. For the full and final details, we have to wait for DHA’s announcement.

A look at market rates

Property rates in Prism dropped in the absence of active buyers and investors. While some believe that the rate in drop was inevitable under the circumstances market went through in the past, others believe that the rates were just being corrected, a phenomenon markets go through after experiencing robust trade activity. But what’s more important is to try to find out what’s promised ahead under the circumstances where much is expected to be fixed at federal and provincial level.

While we wait to see the eventual impact during the next quarter, Chaudhry sees 5% to 10% gains in the short term and that’s because she believes that during the next one month, the track the new government will be following to lead Pakistan towards prosperity will be visible.

Here are the current market rates:

If you agree with Sidra Chaudhry of Kings Property that buying property in Phase IX immediately is the thing to do, you can discuss this further with her on phone: +92-300-040-9894.

In the meanwhile, let us know what you think about investment prospects in Prism IX through your comments below.