Time to take a close look at DHA Islamabad Phase II Extension

Defence Housing Authority (DHA) Islamabad is the city’s most searched locality on Zameen Trends among people looking to buy plots. The extent of its popularity can be gauged from the fact that the popularity index points for DHA are almost 50% higher than that recorded for the society positioned on the second rank.

Within DHA Islamabad, we have Phase II on the top. This block, however, focuses on DHA Phase II Extension. Why? Simply because we believe that time has come to take this phase seriously for investment purpose.

Here are the details you need to make up your mind.

Project details

Phase II Extension shares it boundaries with DHA Phase V and it comprises 18 blocks; Blocks A, B, C, D, E, F, G, H, J, K, L, M, N, P, Q, R, S, and T. Here you will only find plot files for 1-kanal residential plots. The phase is located on beyond railway line that bisects Kahuta Road near Police Academy Sihala and heads to Rawat Industrial Zone.

The terrain of this area is beautiful; it’s green and is elevated, which also means the phase will have very few deep plots. Because of its elevation, Waqar Raja of Property Investment Point believes that once developed, it will offer better views of the magnificent green surroundings than many other developments of this region, including DHA Phase V.

Why Phase II Extension?

The straight answer to this is lower rates. If you compare rates of plots files in Phase II Extension with those of plots in Phase V, you will see that the difference is huge. Furthermore, DHA is currently busy carrying out development work in Blocks A, B, C, and D. So far, the work done on levelling land has been completed by 20%.

Raja believes that since the terrain here is uneven, infrastructural developments take a while to complete the initial levelling. Once levelled, the rest becomes much easier. We can expect to see that happen in the next one and a half year.

Comparing rates

DHA Phase II Extension is currently the cheapest DHA product in town. Some believe that the slow pace of on-going development work is the reason behind slow appreciation in rates, while others believe that the overall drop in investment activity is responsible for it. Despite how and why it is so, more important is to consider where it can land in the medium to long term.

Raja believe that rates in the blocks where development work is being carried out can increase by 70% in the medium term.

The best comparison of DHA Phase II Extension is with Phase V, where property rates now fall in the price range of PKR 9,000,000 and PKR 11,000,000. While in Extension, the property rates in Blocks A, B, C & D ranges between PKR 4,500,000 and PKR 5,200,000.

What to do now?

The final map for DHA Phase II extension hasn’t been shared yet, so you cannot know the respective plot numbers of files but you can certainly pick to purchase files in any block you like. Agents recommend Blocks A and B as their location is much better in comparison. Since development work is also being carried out in Blocks C and D, these are not bad either.

It should be kept in mind that investments made in DHA Phase II Extension will be more beneficial in the medium to long term, rather than the short term. Your optimal time period to get returns on these files will be around three to five years.

That was the update you need on DHA Islamabad Phase II Extension. If you have questions for us or feedback on the article, let us know through your comments. You can also nudge property gurus on the Zameen Forum and get their take on investing in this phase.