DHA Lahore’s Phase VIII sees a drop in property value

DHA Lahore’s Phase VIII has a lot to offer, but prices are seeing a continual dip. It has a location like no other, it is the only phase that is accessible from four interchanges of the Lahore Ring Road (LRR), and the Allama Iqbal International Airport is located at only a few minutes’ drive from the phase. So the drop in property value is confounding, to say the least.

The Defence Housing Authority (DHA) had announced possession for all blocks of the locality (except Block X) on December 29, 2016. However, the list of blocks ready for possession was rolled out on March 15, 2017. Since then, property values in the phase have seen a drop of PKR 1,000,000 to PKR 1,500,000. The question remains: why?

To start with, prices in the phase increased artificially because of a massive influx of investors. Many investors from across the country invested in the phase and they actually secured notable returns on investment. Now these investors are exiting the phase, which has resulted in the price drop.

The second reason is that Phase VIII is not populated yet and will take some years to develop. So, genuine homebuyers instead lean towards Phase VI, around 70% of which has been developed. Even the prices of properties in Phase VI are lower as compared to the prices of properties in Phase VIII.

The third reason is that the number of property sellers in the phase is greater than the number of buyers. This has created a demand and supply gap and has thus resulted in a drop in property values.

This does not mean that the phase has lost its potential for investment. Prices will start to increase here as soon as the development of houses and other commercial properties progresses. Currently, the prices of residential and commercial properties in the phase are as follows:

Residential plots
Plot type	Price range
5 marla	PKR 3,500,000 to PKR 6,500,000
8 marla	PKR 7,500,000 to PKR 8,500,000
10 marla	PKR 9,000,000 to PKR 14,000,000
1 kanal	PKR 13,000,000 to PKR 30,000,000

Commercial plots
Plot type	Price range
4 marla	PKR 30,000,000 to PKR 67,500,000
8 marla	PKR 62,500,000 to PKR 150,000,000

According to a source, some agents are trying to lift up this phase and you will probably see promotional material about it in the newspapers in the coming days. Ultimately, prices will increase here and this is the right time for investors with big budgets to jump in.

Phase VIII features a 148-kanal central park and every block of the phase has two to four parks. Furthermore, the Phase VIII Commercial Broadway is set to become one of the biggest business hubs in Lahore, but some more years are required for its development. In addition to this, the phase will feature five big shopping malls and last but not the least, it will also play host to the largest private hospital in Lahore.

For all those discerning investors looking for big returns in the long term, Phase VIII is an excellent option