Dear fellows,
I am planning to invest in d12 (any sub sector) with a budget of pkr 30 million, probably 50x90 plot
Please advise if this is a good option because d-12 prices has been increasing annually by atleast 10-15% and it probbaly is the only option in cda sector with this price range for 50x90 plot other than g-13 which does not have location at par with d12 (other than kashmir highway)
Would the experts recommend to go ahead with this investment or would you suggest any other option. I plan to build a home for renting purpose after one year on the same property to take rental yields while the yearly price gains shall also continue.
What is the potential of d12 in next 3-4 years?
I have looked around but not able to find another option in this price range with a locality matching d12 and the possible prospects of price hike once fully developed the way d12 is expected to go up once fully developed.
Please shed some information from your expertise.
D 12 is hugely over priced at the moment. Its a good place if you want to live there in future but rental yield will be very low.
D12 is simply overpriced and good for nothing place except that margala hills.factor.No considerable roi is expected unless the CDA gets up from deep slumber to devekop it on modern lines which is obviously next to impossible…Development is pathetic,access is pathetic.Rental yields are low and will remain low in foreseeable future.As for previous gains are concerned,d12 and g13 are approximately stagnant for last 3 years so 10 15 pc annual gains are definitely a miscalculation.
Agree D12 is overpriced and will give you less return than market. One of my friend just bought 30*60 plot which cost him around 9 million 6 months back. Still no change in price.
Hi,
D-12 is the only CDA sector with low prices as compared to other CDA sectors. It has awesome location. The development standards are not high.
It would be a huge investment.If you just consider it for investment it might not yield high returns.
I would prefer it because of it's location because i have job in Islamabad. DHA/Bahria are too far away.
If D12 is overpriced, what other options are there in CDA Sectors with similar long term prospects of price increase?
I 16 is a good option
Donatello,if u are looking for something from investment view point,then why are u confining yourself to CDA sectors only?There are many other credible options which are even much better than these good for nothing CDA sectors
Falcon, my reason for confining to D-12 is the possible gains this will give once the sector will fully develop, which I believe will be more than any other invesment in the long run.
D-12 when it is fully populated will have 50x90 plot for atleast 5 crores while current prices are 2.5 crores
where else can I have such return expectations in medium to long term range?
Agreed with Donatello, big jump might be bit late but will be huge for sure, I visited there couple of weeks ago and was surprised to see that it has started to look like proper CDA sector, double roads have been added around the whole sector, my last visit was 2-3 years ago when there was dodgy looking police chowky at the start which is not there anymore and the access rd was pathetic, now it’s carpeted double road
Donatello,first of all there is no 50x90 for 2.5 crores even the most bad ones is far expensive than this and the plots that should be bought for investment purposes is for atleast 3.25 crores at reasonable location.Secondly, 5 crores is a far fetched dream because in this price on can go for multi e-11/3 which is far better in every terms that is development security access and living conditions etc.And you are foreseeing that cda would develop it,i think you are investing for you grand children maybe.
SAADI bhai is right.It may good for living in future but not a good option for investment.
Regards
The rent would be low initially.... There are some water issues also in D-12.... Bores getting dry very often....
Full development of the whole sector will take more years....
I agree that rates are already high... And any further growth will be slow and long term....
Regards
Thank you experts,
if this is the situation, then what exactly is the reason for such sky high prices of the sector..
i Can see from the comments that it is over priced but no one has pointed the reason.. Bad develoment, water issues, still time to populate etc etc but overpriced.. Wht would the market not correct itself for the sector if there is no demand and the secotr is not developing?
or Maybe we have to admit that this is the actual value for D-12 no matter how bad it is from development side. This is the value of the land regardless of the overall situation !!
looking forward to your opinion experts.
If you have money and time investment in D-12 is wiser decision, the beauty of the place is its proximity to Margallas (identity of Islamabad… The most Beautiful city of Pak)and ambience is second to none… For ordinary folks bahria and DHAs are good.
Million sir,there is no such thing as extra ordinary about d12.It is as reasonable as other poorly developed sector of cda.Main issue is underground water and i know some cases where people have even left their grey structures due to unavailability of water even after boring.Pathetic infrastructure all around.After maghrib,even outlaws hardly dare to enter the sector due to wilderness.Margala view is not the only thing u need in life.Good infrastructure,schools,markets,hospitals are more of necessities than roaming in the realm of the margala’s romaticism.And if u are thinking that really posh folks would move in the sector than it is merely a misjudgement.Main sectors of islamabad are now really having tough time to prove their exaggerated worth.And the main indicator is the slight drop in the prices of zone 1 sectors while even in depressed market,auburbs have gained at variable scale depending upon location brand and development.
Falcon, I am not sure which sector in the Zone have you noticed even the slightest of the price drop.
Wilderness issue probably due to the sector not fully populated yet. It is natural for any new sector take its time to populate which is the case for D-12 and may have taken longer than expected due to one reason or the other.
But i am not convinced when some one says D-12 will not beat F-11 or F-10 in prices in next 5 - 10 years from now.it has all the potential and reason to do so. It is literally the last option for zone 1
Donatello just peek in the market to sell anything in zone 1 established sectors and you would come to know what i am talking about.High prices just dont mean to say that u start demanding any arbitary tag and that would be the trend for market to follow instead real tags are to be considered.I even personally know some persons who are struggling to sell their properties in the best sectors and their properties are lying vacant for couple of years and failed to grab any reasonable offer.e.g a person demanding for a 40x80 house brand new with basement and with best fixtures constructed on a corner plot was demanding 6.25 crores since he bought the plot for 3.5 and spent another 2 approx on construction with the best standards.Now he is demanding 5.75 approx for the same house and no one is willing to place an offer even on this reduced tag.It is one of the best sector with best location and best construction qulaity and fixtures. I can quote you countless examples here but dont have the time to type each and every experience here so i just try to generalize the things.If u are so sure about d-12 then go ahead without any consultations because we have presented what we percieve and observe.
Falcon, thanks for the insight.
I am no expert here , just an expat with an amount to invest.. Comments here have really changed my opinion about D-12 which I am reluctant to change as I like the sector personally due to its location only.
This insight will really help me with my decision.
So in you opinion, what is the best option to invest 2.5 to 3 crores with aims of deent rental income once construction is done in an year or so and promising capital gains in the next 5 years or so.
Donatello no issues sir.No one is expert here.We just present our observations and learn from each other.I personally think, if you are not looking for something from investment view point,then you should be least bothered about margala views and location.Any society that is with good standrads and credible tag would be more than good enough to invest.Now i personally think for rent you should look for commercial options but for feasible commercial options,u have to increase your budget a bit or maybe you can buy in any underdeveloped sectors to construct it down the road maybe 5 years from now.In residential properties, i would recommend u that instead of pouring all this money at one place and that too just for rental purposes,divide this amount between two 10 marla plots, a 10 marla in d-12 (Because of your special liking for the sector) and another 10 marla in dha 2 islamabad for construction and rental purposes.In this way you would have both of your needs fulfilled i.e you affinity for d-12 and a source of rental income.May be you have to arrange couple of millions for this scheme which i have presented.