Manahil EstateIslamabad Real Estate Property Dealers and Consultants

Bahria Town Phase 8 Development and Price Update June 2015

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Bahria Town Rawalpindi is one of the most active investment venues in Pakistan having multitude of investors and property dealers who cause quick rise and fall in property prices. Bahria Town Phase 8 is the area that is mostly considered for investment and hence mostly hit by quick rises and quick falls.

Market prices in Bahria Town Phase 8 never stabilized after the rise in 2013, and we have already published an article on the possible reasons causing Bahria Town Phase 8 prices to spiral down and the trend still continues uninterruptedly.

Bahria Town seems to have forgotten its phase 8 after the launch of its Karachi chapter as most of the machinery and staff have moved to Karachi and all new mega projects and developments are going on there. Investors also forgot phase 8 and moved to Karachi where they saw better gains as it had a very large market of buyers. Lack of interest from investors, and lack of interest from Bahria Town itself have caused this apocalyptic market situation.

Plot prices in non-developed blocks have gone back to almost the same level as they were before 2013. Since many investors had to bear heavy losses after the upsurge of 2013, many are still stuck as they didn’t get heart to sell out their files/plots while others sold out their files at whatever price they got and moved to other investment venues.

It is true that files have caused major losses, especially the files of Bahria Town Phase 8 Extension and Model View Residencia, where profits couldn’t sustain and prices went back to original level. Phase 8 extension 10 marla is normally around 3 to 4 lac profit, 8 marla is around 2 to 2.5 lac profit and 5 marla is around 1.5 to 2 lac profit. Model View Residencia, on the other hand, has gone negative as there is no demand for these 1 kanal files in the market.

Prices in Phase 8 J,K,L,M,N blocks have also reversed badly and unable to stabilize after so many months. Average price of 10 marla is around 25 lacs, average price of 7 marla is around 20 lacs and average price of 5 marla is around 17 lacs. Block L, which performed better for many months after the downfall, has ultimately failed to sustain its prices. P block has also given heavy losses, as people purchased 1 kanal plots for around 70 to 80 lacs but prices couldn’t sustain and have gone back to around 50 lacs.

Prices in developed blocks A,B,C,D,E and F-1 have also reversed but still loss is comparatively lower. Average price of 10 marla is around 40 lacs in these blocks and average price of 1 kanal is around 70 lacs. Non-developed part of F block has gone back to original level, i.e. around 22 to 25 lacs for 10 marla and around 40 lacs for 1 kanal.

Blocks G,H and I have comparatively performed better as development is complete and possessions are ready. 10 marla plot prices in G & I blocks normally range from 30 to 35 lacs and around 35 to 40 lacs in H block.

It was least expected that Safari Valley can reverse so badly as this is only most populated area with small residential plots where most of the people prefer to build their houses. Average price of 5 marla plots is around 25 lacs and average price of 7 marla plots in around 35 lacs in Safari Valley.

Since pace of development is slow, we can’t predict exact time frame for possessions in non-developed blocks of Bahria Town Phase 8. Block F2, f3, L and N may be ready for possession within next one year as much of basic development work has already completed. Blocks F4, F5, J, K and M can take another 2 years since there is no development on ground.

Phase 8 Extension can take from 3 to 5 years as development work has not even started. It is expected that phase 9 files will be merged in phase 8 extension as the area reserved for phase 9 is the location where we see phase 8 extension today. Phase 9 files have also reversed badly and average prices of 5 marla range around 7 lacs, 10 marla range around 12 lacs and 1 kanal ranges around 22 lacs.

As we observe that non-developed blocks and files have given major losses while developed blocks didn’t go down that much. But since prices are already very low, you can investment in either files of developed/non-developed plots but location on map or ground should be good. When market is fast, you will see many bad location plots floating in market and it is time to sell out such options which otherwise are hard to sell off. When market is stagnant or down as it is today, bad location plots will never be considered by any investor/buyer so you will be stuck till market rises again.

As a general advice, you can consider safari valley for investment, especially Rafi, Umer and Awais Blocks and you can consider block H, I, G, F for investment due to current development status and better location.

Prices of Awami Villas have also reversed badly, especially in Awami Villas 3. In 2013, Average price of Awami 3 ground premier was around 35 lacs, but now you can buy it for around 20 lacs. It is around 40% decline which is a huge loss for anybody holding these apartments. Awami 5 and 6 have also seen major drop in prices but it is advisable to buy or keep apartments in Awami 5 and 6 as these are almost complete now and location is much better, i.e. opposite to F block on ring road.

Commercial plot prices have also come down in safari valley and phase 8. Business District commercial area is still going negative, while hub commercial, rafi commercial, linear commercial etc have lost their value from 25% down to 35% as compared with the prices in 2013.

Other phases of Bahria Town are normally not considered for investment as those are already expensive and well developed with good population already inhabited there.

Bahria Town has to take some serious measures in order to change the market situation which is prevalent and getting even worse for past one and a half year. Development work should be sped up and possessions should be given in all pending sectors. Also some major investment is needed in order to revive the market, so Bahria Town should incentivize investors by announcing some major project in phase 8.

This blog post was created on Friday, June 12th, 2015 and Filed Under Tags: , , ,
  • Shahid Abbas

    Very good analysis, thanks

    Plz guide & advise for investors of Phase 8 Extension as installments are completed but Bahria town team is not communicating about any development. When there be any chances of start of development work.

  • nadeem

    whats the status of J block is it developed or not? and when is it expected to pick in prices again? is the land of J block in any dispute etc?

  • Nisar Ahmed

    Any news on possession of block L bahria town RAWALPINDI

  • Yasir Arafat

    Psl give your latest review on Phase 8 development… Pls give your expert suggestion about investment in Sector-A of Phase 8… 10 Marla plot is about 26 lac… thanks