DHA Valley update – what does DHA Homes’ re-ballot mean?

Is DHA Valley heading towards a resolution to the problems its investors have been facing? Recently, the Defence Housing Authority (DHA) Islamabad – Rawalpindi (DHAI-R)’s official website has been displaying the following image for visitors:

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This announcement is a big deal. This is not the first time possession has been this close to reach. Around 18 months ago, existing units were being renovated and seemingly prepared for possession. There were even advertisements declaring that possession was on its way – but then everything fizzled into thin air without explanation.

DHA Homes is one of 21 blocks within DHA Valley. The area features 5- and 8-marla houses, and has approximately 1,000 homes ready for handover. At the moment, the construction of about 350 units is underway. My sources confirm that approximately 1,500 units were booked in DHA Homes.

On June 7, the Jungle Restaurant in DHA Phase I will host the re-ballot for property here.

The re-ballot

The re-ballot will allocate DHA Homes to their respective owners. Some folks expect that the DHA will offer possession of DHA Homes that are ready to be moved into, and will announce a schedule for handing over the remaining houses. However, I have learnt that DHA will only do the re-ballot to pick some 1,100 DHA Homes’ owners and announce a possession handover timeframe, which could be anytime within the next six months.

Some suggestions

Around 70,000 people have stakes in DHA Valley. Information has been a constant problem. Ambiguity regarding the project’s development status and the time for its completion has been a big issue for investors. The re-ballot ceremony provides itself as an opportunity for DHA to relay accurate information on these issues:

• Dadhocha Dam’s boundary

The final site and area of the planned Dhadocha Dam, which is to be built by the Punjab Government, should be identified immediately. According to the Apex Court’s orders, which were issued more than a year ago, the Punjab Government was to submit a feasibility report for the dam. There is no update on the report.

The dam – construction of which has been deferred due to unavailability of funds – affects some sectors in DHA Valley, along with the route of DHA Expressway (which is the main road artery that connects DHA Valley with DHA Phase V).

The final feasibility report will help DHA identify the blocks and areas that will be compromised due to Dadhocha Dam. The sooner these area are identified, the quicker DHA can come with an alternate plan to relocate these blocks.

• Possession timeframe

In DHA Valley, property units in over 20 blocks have been sold and possession hasn’t been granted in any of them. With the re-ballot to be held for DHA Homes soon, DHA should be in a position to share a timeframe for the possession of the remaining plots and homes in other blocks. These concerns will probably be addressed during the ceremony.

• Will there be any relocations?

Land for some Blocks in DHA Valley hasn’t been acquired. Most of these blocks are located on the right side of the site Bahria proposed as the alternate placement of Dadhocha Dam. In addition to this, some blocks might also need to face relocation due to the dam. If there is a plan in place to readjust or relocate some of these blocks, DHA should share this information too.

If it is possible, DHA should share details of the plan it has in place to deal with litigation in the Valley or proceed with the land acquisition process. Update in this regard should be shared.

The project has seen too many delays to remain a promising prospect for investors. On the other hand, for many others, the property rates here are too low to ignore.

How soon can the project become rewarding for real estate investors? The answer to this depends a lot on what the DHA announces while holding its re-ballot for DHA Homes on June 7.