The property prices escalated in August for this area up to 19 million for 4 Marla commercial plots, now it has come down to 15 million, what could be the reason for this and where do you people see the trend moving to higher prices again or dipping, in how much time. One of the dealers had an opinion that with the Bahria Town projects coming to Karachi investors have invested their money in it and the demand for other areas have reduced thus affecting prices.
Are you talking about DHA Karachi or Lahore?
I think he means phase 7 extension in Karachi.
Yes i was talking about dha karachi, i don’t think phase 7 has an extension in lahore but i do know about the phase 9 extension of lahore.
Muzammil - I see a lot of long term potential in phase 7 extension. I know prices have dipped 10-20% there too but I see it as a good buy/hold for the following reasons:
1) Cheapest place in DHA; next to built up area 2) Only place where 100 sq yard plots are affordable for upper-middle class - average of 90 lakhs; if someone wants to move from the other, most disturbed areas of Karachi, and their budget is around 1-1.5 crores they only have two options in DHA: Build/buy a new 100 sq. Yard house in Phase 7 ext, Phase 8 or buy a new apartment above commercial premises. The latter costs about 1.2 crores and I believe most people will prefer to pay 1-2 million more to get their independent house than those apartments - some which are dodgy. Yes, Phase 8 staff plots also offer a similar price range but it's very empty and barren there and to me, phase 7 extension will get populated sooner. 3) Roads are being developed, street lights are being installed and gas connection is being installed - which means there is still development uplift appreciation potential there (as compared to phase 8 staff plots where a lot of the work is already done)