Investment in residential property has increased by approximately 60% in the last two years. This is because the return on investment (ROI) achieved from residential property is significantly higher compared to other options such as commercial property, stocks, bonds and gold.
Here are the top residential areas to invest in Pakistan:
1. Defence Housing Authority (DHA), Lahore. Located off Walton Road and spread over 2,240 acres, approximately 75% of DHA Lahore is built-up. The presence of several high-end shopping, dining, healthcare and recreational avenues has increased investor interest. * Property prices and rentals appreciate annually by 20-30% and 15-25% respectively; prices are expected to increase by 25-35% in the next three years. * Plot sizes include: 125,250,500 and 1,000 square yards. * Price per square yard: Rs 50,000-60,000 (plots); Rs 65,000-80,000 (houses). * Monthly rental range per square yard: Rs 240-300.
2. Sector E-7, Islamabad. Located at the foothills of the Margalla Hills and spread over 123 acres, Sector E-7 is completely built-up. Nearby recreational avenues include the Islamabad Zoo and Margalla Greens Golf Club; Shaheen Market, a bustling commercial pocket, is nearby. * Property prices and rentals appreciate annually by 40-50% and 3.5 to 4.5% respectively; prices are expected to increase by 10-15% in the next three years. * Plot sizes include:800,1,000 and 1,250 square yards. * Plot per square yard: Rs 120,000-170,000 (houses). * Monthly rental range per square yard: Rs 280-375.
3. Phase VIII, Defence Housing Authority (DHA), Karachi. Located near the Arabian Sea and spread over 4,000 acres, 15% of Phase VIII, DHA is built-up. Amenities and recerational avenues include clubs, educational institutions, malls ans restaurants; several upscale shopping malls and parks are being developed. *Property prices and rentals appreciate annually by 10-40% and 12-20% respectively; prices are expected to increase. By 30-35% in the next three years. *Plot sizes include: 100, 120, 150, 300, 500, 600, 1,000 and 2,000 square yards. *Price per square yard: Rs 32,000-120,000 (plots); Rs 100,000-150,00 (houses). * Monthly rental range per square yard: Rs 100-500.
By Uzma Nawaz. Information provided by Zameen.com, Lahore, and Citi Associates, Karachi.