Lahore’s real estate on the rebound

[Salman]

LAHORE: Lahore’s real estate sector, which has been under immense pressure due to lack of investment and trust, especially after the breakdown of the boom observed between 2003 and 2005, has finally started to rebound. The recovery has taken seven years, but this time it builds on more solid grounds.

Lahore’s real estate revolves mainly around the Defence Housing Authority (DHA), which has expanded massively in recent years. Although there are similar housing societies in the city which provide comparable living standards, prices for land in DHA are more volatile and sensitive to investor sentiment.

For the past year and a half, prices of plots in DHA have witnessed a steady upward trend. Price increases in some blocks have crossed even the 100% mark. For instance, the price of a residential plot in DHA Phase-8, a prime location in front of the Lahore airport, is around Rs11 million for one kanal of land. The price of that same plot around two years ago was around Rs4.5 million. Similarly, a one kanal plot in Phase-6, available two years ago for around Rs6.5 million, now costs Rs12 million.

Bahria Town, located on the other side of the city, has also witnessed an uptick in plot prices. Bahria Town, which has shot to prominence over the last decade, has witnessed a nearly 60% increase in prices for one kanal plots. A one kanal plot, available one and a half years ago for Rs5-5.5 million, is now available for Rs8-8.5 million.