Investment in new development of Islamabad

Buying Property Investors Advice
#1

Hi,

I'll appreciate if someone could help me with these questions:

1) In Islamabad what kind of ownership does these schemes (Bahria, DHA and CDA) offer to the plot buyers? - Land ownership - Lease - Other Please answer for each organization separately.

2) Out of these three sub sectors which one could be getting developed first? - G-14/1 - G-14/2 - G-14/3

3) Is Roshan Pakistan scheme a safe investment?

4) In '2 to 3' years time what would be the profit margin on a plot in B-17?

5) Out of these sectors which one would you prefer for a '2 to 3' years investment and why? B-17, D-17, D-18, E-16, E-17, E-18, F-15, F-16, F-17, G-15, G-16, G-17

Regards.

#2

Khan,

Ans of:

(1) In Islamabad, it's kind of lease which the plot is transferred.

(4) The profit margin in sector B-17 might be ten times in coming years because I bought a plot here 6 months back, and now its price is near to double. So you can assume.

(5) B-17, because here the prices are still low and when the Margalla avenue will be built in two to three years, the distance from here to the heart of Islamabad will be 5 to 6 minutes drive.

#3

Many thanks Zafar.

About your plot that you bought in B-17, is that also on lease?

If yes then: - Who is the owner (the building society OR some individual)? - What is the time period of the lease? - What will happen when the lease time is finished? - Is there any procedure/way that can transfer the actual ownership on your name i.e. a registry on your name?

Regards.

#4

Plots are not leasehold but are freehold. Leases would only apply to apartments in blocks.

#5

Many thanks Arshad.

Regards.

#6

Does anyone have some more knowledge to share on my questions above?

Regards,

#7

Syed Ibrahim,

MBS would you like to share some views please?

Regards.

#8

Dear Khan,

  1. CDA=transfer of land in your name (ownership) DHA= Lease BT= Lease

  2. Will have to check

  3. We dont advise to invest in Roshan Pakistan Scheme .... Pls visit schemesand do a thorough survey or consult an expert before investing your hard earned money.

  4. B-17 margins will be good but not 10 times ... My disagrement with Mr Zafar. If its double now then better sell and re-invest .

  5. G-15, D-17, B-17 & F-17 are good investments.

Ali MEYAAR Builders

#9

Thanks Ali,

As B-17 is being developed by a building society (MPCHS). If I buy a plot in B-17 on installments and pay the money on-time then at the time of getting the possession will I get the ownership OR the lease?

AND

Will MPCHS handing over the sector to CDA after all the development work is complete?

Regards.

#10

Dear Syed Ibrahim and MBS,

Could you please also give some suggestions about questions 2, 4 and 5?

Regards

#11

@Khan, MPHS is a private housing society and there is no plan of CDA to acquire left hand side of NH highway facing Peshawar, and all these societies meet minimum basic requirenment for CDA NOC.

Ali MEYAAR Builders

#12

Many thanks Mr Ali,

Could you please tell what would happen to G-14/1,2,3 being developed by FGEHF. Will these sub sectors be handed over to CDA after development?

Regards.

#13

Dear Ali,

Sorry for late response was out of city from last two days. Answer for question no 2 is sector G-14/3 it will develop before 2 and 1 as there is no major encroachment in that sub sector.

Q 4 answer is yes there is a bright chances of good profit in B-17 nobody can tell you the exact margins I don't think so it will improve ten times however with in 2 years prices will be Double there or may be 3 times.

Q no 5 is a bit tough question. Normally people consider it personal interest but I think so B-17, F-15 and 16 and good options for investment purpose. B-17 developers are efficient and they are not compromising on standards and if Margalla Avenue will be functional within 2 or 3 years definitely prices will shoot up.

After MPCHS in zone 2 JKCHS is a good society and there is location is very good so F-15 and F-16 are good options for investment depends on budget. G-15 is a good option but already prices are very high there whenever they will connect G-15 to Kashmir highway as its already approved prices will shoot.

#14

Many thanks Syed Ibrahim,

I do appreciate all the responses and most of the questions have got the answers.

One thing linked to my first question i.e. about lease/ownership:

On possession what would be the status(leasehold 'OR' ownership) of plot bought from these organizations? - MPCHS (B-17) - FGEHF(G-14/1,2,3)

Regards

#15

It would be treat as an ownership as they will transfer the allotment on your name.

#16

Thanks alot guys,

Great forum and I would like to say special thanks to Mr Ali and Syed Ibrahim for sharing your knowledge. It is a great help.

Regards

#17

Sorry for a delayed response Khan,

2) Out of these three sub sectors which one could be getting developed first?

  • G-14/3 per the market, nothing official on that

3) Is Roshan Pakistan scheme a safe investment?

I don't think so

4) In '2 to 3' years time what would be the profit margin on a plot in B-17?

I don't think there will be much difference in 2-3 years. May be after completion of Margalla Avenue which will take years, I guess, it will generate some profit, but nothing extra-ordinary can come outta it in next 3 - 5 yrs. Even if the margalla avenue is built, it will still be too far from Islamabad with nothing special around it. And you can't relate it with BT 1-5 / DHA 1 locations which were far too but run by massive developers.

5) Out of these sectors which one would you prefer for a '2 to 3' years investment and why? B-17, D-17, D-18, E-16, E-17, E-18, F-15, F-16, F-17, G-15, G-16, G-17

G-15, F-15/1 - nothing else.

#18

On another note, you all be please realistic about development time of any of the sectors or societies from DHA, Bahria, Zone 1or Zone II, any of them. The development pace which we saw in last decade is not going to come back.

Be realistic, no new society/sector would offer living conditions in less than five years. You might think of being smart investor but the ground reality is apart from the real estate agents, hardly anyone gets to make money. Try to find some personal references who got the benefit in last 4 years?

The golden rule for Pakistan is don't tend to see things beyond 2 years, predicting won't be a wise way.

I would reiterate the same thing, there's unending and ever increasing supply / options in the market so you'll hardly miss THE BEST CHANCE. Look around all the new developments of last decade and see it yourself that the actual development takes its own natural time and market is great when you want to buy and rubbish when you want to sell.

I am not trying to scare you or put a bad picture of real estate here, all am saying is to be reasonably sensible and realistic while considering your options.

#19

MBS thanks for the eye opening answers/comments.

Actually I am doing my research before making any decision. Trying to contact few people who have invested in past few years to get and idea about returns on their investment.

One important point in my check list is a freehold property i.e. with 'ownership' on my name. Which I understand is not being offered by BT and DHA.

Regards.

#20

Let your 3rd generation worry about the lease. :)

Anyway, if that's your preference and you've got some bucks, then go for D-12. I myself am looking for a while now and as of now am inclined towards these two:

D-12 - Prime sector / Great neighborhood DHAI 11 - bigger house / run by an institution

But for D-12 the prices are highly inflated, I'd rather wait for them to come down.

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