Lahore’s real estate market has marched to new highs during the last three months.
After a consistent increase in recent years, rent of properties and prices of land have hit the peak with more and more investors following the trend to make safe investments and earn regular incomes.
The rise in house rent is not artificial, neither for the person who is investing his money to construct a house, nor for the family willing to shift to some rented place. There are several reasons behind this phenomenon.
Migration from other areas of the country because of the law and order conditions there, rural people aspiring for a better future for their kids, benefits and opportunities in the urban lifestyle and increasing number of family members are few of the factors.
All these are providing a room for the real estate and construction industry to flourish and it is not looking back.
In a bid to ensure the safety of their families, people are increasingly opting for gated communities. In the city, some real estate developers are providing a mix of luxurious lifestyle and adequate security.
Housing colonies developed by Eden Developers and the Divine Group as well as Askari Housing Schemes are attracting people, but Bahria Town is the place where most people love to shift.
In Bahria Town, finding a rented space is a hard nut to crack at present. Construction of new houses is going on at a fast pace here and every day the administration approves eight to ten applications for home construction. The rent for a one-kanal house is around Rs100,000 whereas for an eight-marla house or villa the rent ranges between Rs40,000 and Rs45,000, but they are barely available.
In Army-controlled Askari Housing Schemes, which are 11 in number, average rent for a 10-marla house is between Rs50000 and Rs55000 and for one-kanal house is between Rs70000 and Rs80000.
For other gated communities, average rent is around Rs60000 and Rs65000 for a 12-marla house and Rs40000 to Rs50000 for an eight marla house.
Houses in these societies have not only adequate security, but they have other facilities as well, like community centers, parks, maintenance system and much more. Under-construction new housing societies will provide added features like a shopping mall and a cinema.
In the Defence Housing Authority, the rent is much higher than gated communities as this project is considered a safe investment and always acts as a market driver.
Average rent for a one-kanal bungalow in DHA ranges between Rs90,000 and Rs125,000, apart from few cases where the rent reaches Rs150,000. Average rent for a 10-marla house is between Rs50000 and Rs65000.
In Gulberg, average rent for a relatively new one kanal bungalow is around Rs150000 and for a two kanal bungalow the rent is around Rs250000. Rents in Johar Town are almost the same as in DHA.
Normally, 0.5% of the total cost of a house is demanded as rent. For instance, if the price of a one kanal house is Rs20.5 million, the rent will be Rs125000. However, negotiations play a major part in setting the rent. With this, the rent is increased 10% every year.
Price of Phase-9 files are touching 4.3 million rupees.
Phase-6 one kanal price is around 10 millions
Phase-5 one kanal is around 12.5
Prices of the houses in Phase-1 to 6 are; 5 Marla between 6.5 and 8 millions, 10 Marla between 12 and 17 millions, 1 kanal between 16 and 30 millions, 2 Kanal between 40 and 70 millions.
Bahria Town Lahore
Sector B and C plot prices; 5 Marla 2.5 to 3 millions, 10 Marla between 3 and 4.5 millions 1 Kanal between 5.5 to 7 millions.
Bahria Nasheman, 5 Marla 1.3 to 1.4 and 8 Marla 1.5 to 1.7 million rupees.
Sector B and C houses; 5 Marla 5.5 to 6.5 million, 8 Marla 7 to 8.5 million 10 Marla 9.5 to 11 million rupees
Lake City and Fazaiya
Prices of 10 Marla plots are 2 to 2.5 million and 1 Kanal 3.5 to 4.5 million rupees.
Model Town Gulberg Faisal Town and Garden Town
Prices of 5 Marla houses, 5 to 7 millions, 10 Marla 10 to 12 million and 1 Kanal old houses are 14 to 20 million rupees.
Disclaimer: Prices mentioned above are based on my own research and may differ actual market prices.