For long term investment in real estate is it better to invest in Islamabad or Lahore?
There is more sale purchase in Lahore but decent areas in Lahore are more expensive as compared to Islamabad.
So what is the verdict for investment point of view for 5-10 year period? Islamabad or Lahore?
Diversify your investment…Buy something in dha lhr and something in dha 2 ibd or bt…you can also go for zone 1 if your pocket allows you…
Generally speaking, plots of more or less same quality of development and location are more expensive in Lahore as compared to Islamabad.
In Islamabad you can buy one kanal possession plot in B-17, F-17, E-17, F-15, G-15 - all of good or excellent quality development at reasonable distance from centre of city (lets say Blue Area) in a price range of 40 lacs to 1 crore.
In Lahore, for any colony at the same distance from Mall Road, the price will be triple or more. Okay Lahore is bigger, so let us double the distance from Mall Road, and compare with societies offering possession and the same standard of development. In comparison, I see that EME, Sukh Chayn and Bahria which offer development standards in the same range as F-17, B-17, G-15 etc, the prices are in the range of 1.5 crores to 2.5 crores for one kanal.
So my first conclusion is that Islamabad offers better value for money. But the second conclusion is that if you consider the greater opportunity for business and jobs in Lahore, then the extra price you pay for roughly the same standard of development, Lahore is the better choice for long term investment.
Now let us examine where you get better growth in the mid term? In 2009, a one kanal file in DHA phase 8 was priced at roughly Rs 3.6 million and a one kanal possession plot in F-15 was available for about Rs 4 million. In 2014, the one kanal file of DHA-8 in Lahore is trading at Rs 13 million depending on location while the F-15 plot is still under 10 million.
So because of greater demand of housing from people in business sector who are doing reasonably ok in their business despite the load shedding, the growth in demand for housing plots in Lahore is stronger as compared to Islamabad which has a bigger salaried class (with less purchasing compared to business class).
Overall, my conclusion is that so far the trend shows that growth is better in Lahore for Mid term and Long term.
But for short term of 1-2 years, you can make more money in the big brands of Islamabad if you invest at the right time. For example Rana RS (a contributor of this forum) more than doubled his investment in B-17 because he bought at the right time and sold at the right time - both in 2013! Now this is what I call quick short term gain!
Good analysis by pk1
Pk1 is right. Lahore is expensive but gives higher returns as well.
@pk1 Accurate and realistic analysis. Ur posts show direction, Keep it up brother.
@PK1
Sir, I tend to disagree. Many sectors in Islamabad such as: B-17, G-15, I-14, I-16, G-13, G-14, E-11 and Bahria Enclave has seen price doubling during last year.
How many societies/location in Lahore saw this much growth (except DHA).
Btw return also varies from brand to brand…At some places lhr is better where as at some places ibd is better…
Fully Agreed with PK1…better brands in Lahore is more reliable than Islamabad even if you can’t double it in short terms…That’s truly upon luck
These days Islamabad is slow, but places in Lahore such as DHA phases are still rising.
@ Pk1… But there is some back shifting also seen in Lahore… Like in fazaia… And DHA prices… Whats the reason for that ? was that overpriced previously ?