I would like to request experts to share their feedbacks regarding investment in DHA MULTAN.
Currently 5 Marla plots in Sector P, T and V are available for 30-33 lac and on installments of 3 years for 50 lacs
Please advise should i buy a plot on cash or apply for the balloting ones on installments?
Purpose is investment of 1_2 years.
Thank you
Dear Ahmed, i was among initial allottees of DHA Multan. For a good three years the prices were on zero profit at average. In last two months there is a jump of 50 percent. Among small plots in PTV, preference should be V and T then P. V will get partial possession in two months so a small jump is evident there.
50 lakh for 5 marla, plus 9 lakh development charges gives 59 lakh net price that is too much for Multan in near future. So my opinion is go for 30 lakh plot plus 9 lakh development charges wait for the jump and exit. For installments 10 marla or Kanal are better.
Thank you Nabeel. This was a great help.
How high do you think price of 5 Marla can go and how long should the holding period be?
I think if society itself is selling 5 marla for 50+9 then 5 marla plots should reach 65 by three years. Please advise if contrary.
Thank you!
There are 16000 existing plots in the category of 5 Marla. Plus the new unknown number of 5 Marla plots. Unless there is fast paced house construction, the price increased will be gradual. However, 5 marla plots will remain hot due to easy house loan facility. 65 in three years is quite reasonable guess, but again what is the point of investing 20 lakh per year (total 59 lakh) to earn 6 lakhs in 3 years? Better go for readily available plots for one year investment so that profit margin increases. And you will also know where would be the location of the plot you are buying. This is my personal assessment.
Best stay away from 1 kanal because in DHA Multan due to lower population, there is less buying power and overseas Pakistanis are more likely to reside in the 3 big cities so theyāre investors mostly. 5 marla I believe will fill up as there is genuine demand for it, but overall investors have pumped up prices in Multan within last month or so otherwise 5 marla plots was hovering around 20-25 lac.
Secondly, in my view Multan DHA has become slightly overvalued and will see gradual growth until somewhere in 2022-23 when I expect market will become stagnant almost everywhere. If amnesty gets extended (weāll might hear more news about it in August or September when IMF meeting is arranged), then Multan DHA and almost every developing society will see a boost. For now, speculative trading has decreased in Multan and I think some of the non-possession blocks saw a small correction (others remained same or improved a bit).
I think 5 marla prices will temporarily max out at around 50 lac in a few years. But just note, market is a bit risky right now in general so expecting for your profits to materialise in 1-2 years is a big ask because within that time frame, you could also see a downward trend market. There are a few DHA projects which are good for short-term investment and exiting as soon as you see some nice profits. DHA 9 prism, DHA phase 10, DHA Quetta make for best short-term speculative trading. DHA Prism is nearing possession so more gains will be made, DHA Phase 10 is nearing balloting so it will also receive hyped and Quetta is still undervalued. This trio I consider will gain no matter where market goes, cannot say the same about Multan. Bahwalpur, Multan, Gujranwala have made some very good gains and Quetta is yet to catchup.
This is just my personal analysis. Also another issue I see in Multan DHA (and same issue in Bahwalpur and Gujranwala) is that the supply of plots is massive and the demand/population is not higher than that. Long-term wise that is a massive issue if youāre investing. I always prefer if you invest in big cities because you will always find buyer even in worse case market. Buying in small cities only makes sense if you clearly see undervalued projects.
If I were you, Iād go for DHA phase 10 or Quetta.