The real estate market in Lahore is now a days enjoying a rather healthy growth, in sharp contrast to the property boom bubble that burst at the end of the year 2005, inflicting huge to common people and investors.
Lahore is currently witnessing a major infrastructure development era as the Punjab government has kicked off mega projects.
Migration from smaller cities to the big metropolitan has increased the demand for rented houses in gated communities and other localities, which has cause the start of construction activities and supported small and medium-scale developers.
Since 2010, when investor confidence started to rebuild after the end of property boom in 2005, land prices in high tech societies have increased more than 100%. The Defence Housing Authority (DHA) is taking the best lead as pieces of land in phase-6 and phase-7 are the most sought after items.
In DHA, phase-6, price of a one-kanal plot, which was once on average around Rs7 million in 2010, touched the Rs18-million threshold, an increase of 157% in the price. In the current correction phase, the prices have gone down by around 20%.
DHA society cannot be compared with others, but this doesn't mean that real estate prices in other parts of the city are not subject to variation. Prices in Gulberg and other parts have increased according to the market trends, but these days the market was undergoing the process of correction, which was a healthy sign.
Schemes being developed under the Lahore Development Authority, have seen an increase. Price of a plot of one kanal has increased 30% on an average in the first 10 months of 2013, standing at around Rs12.1 million.
Real estate experts believe in the notion that this trend will continue despite some correction. The Lahore Ring Road project is a major factor due to which more construction will be seen in future.
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