I’m copying below whole post from this link: http://lifeatbahriatown.com/boom-and-fall-in-property-investment-at-bahria-town-lahore/

In Pakistan if any person is investing in property to earn money, then they have only two names in mind.

1. DHA
2. Bahria Town

All Pakistani investors and overseas Pakistani’s who make their properties in Pakistan have just these two names on top of their list.

Booming 4 Years of Property Investment In Bahria Town Lahore

We’ve recently experienced the boom period in history of Bahria Town Lahore. That period was from 2009 to 2013. We’ve seen extra ordinary gain in prices of residential and commercial plots. Amazingly that extraordinary gain in prices of plot wasn’t artificial, that was real.

Let me give you some examples of that prices categorically.

• Residential Plots: From 15 lac to 65 lac (10 Marla plots)
• Commercial Plots: From 30 lac to 10 crore (5 Marla Main boulevard plots)

I’m not talking about 10 or 20 years here, this gain is within four years. People who have worked in Bahria Town Lahore in these four years have make the money of their lifetime. Many people left their businesses to invest in Bahria Town Lahore and even started their own property offices over here.

Reasons Of Boom Period

Why am I saying that this wasn’t any artificial gain but the real thing. Here are the reasons.

No Electricity Load Shedding:

One big problem of Pakistan. Where people face 14 to 20 hours of load shedding in summer season, Bahria Town residencies doesn’t know that how much people are suffering from load shedding because there ain’t any. Yes not even for half an hour.

Bahria Town management has implant the big backup generators which can run the whole society power whether you turn on your A.C. or whatever.

And Bahria Town charge No Extra Charges for this kind of non-stop electricity services. Bill tariff is exactly the same of govt. tariff but many people including me has experienced the far low bill as compare outside of Bahria Town.

No Sui-Gas Low Pressure:

People face Sui-Gas load shedding in winter due to heavy use of it. It’s pressure lower down in city and there’s often difficult to even make a roti. Where as in Bahria Town, there ain’t any low pressure of gas even in winters.

In this case Bahria Town management is not doing anything. Luckily it is located at such a location where the main pipe line of Lahore district came from. So there is never a low pressure in start of a pipe, it’s always in middle or where it reach at last.

Security:

Second big problem for people of Pakistan. Bahria Town management has arranged a large force of security guards, who petrol all over society on motorcycles, cars, wagons etc. They also have installed the CCTV cameras with 24/7 monitoring. Plus they have walled boundaries all over the society and have check posts at each exit.

One interesting fact that if you have to go somewhere for few hours and even for few days, you just call to security number and tell them. A guard from security will come to your home and stays at your street until you come back.

Cleanliness:

Whole society is so clean that it is really hard to find even a juice pack or a chips wrapper on roads.They do it on daily basis in whole society.

Greenery and Parks:

It is a beautiful society with trees on all roads and parks in each block. It feels really good to see the natural green colour done so beautifully.

Amenities:

What most housing societies do is that they create a society with basic, roads, masjid etc. and give commercial plots so if anyone wants to start a shop, he can. So it takes long time to people to shift in such society where you have no facilities or added services.

Bahria Town has started their own shopping mall for grocery shopping, so at first day, you have a place to shop. Further Bahria Town has started below services by it’s own so when anyone shifts in Bahria Town, they should have these services from very first day.

• 24 hours emergency ambulance
• Fully functional hospital
• Fire Brigade
• Shopping Mall
• Restaurants (In Food Court)
• Cinema
• Gymnasium

Supply Demand Theory:

When people see such wonderful above mentioned services lots of people starting to shift in Bahria Town. Nearly 150 new houses started in each month, which is like 1800 houses in an year. This is a big number. Availability of plots was not according to the speed of house construction so plot prices rises not in months, but in weeks.

This is where investors jumped in Bahria Town Lahore and started transaction by buying and selling of plots

Bahria Town has taken intelligent steps at that point and launches new Sectors with lots of plots and amenities of course in each sector and block. People started to go for the booking where they have to pay very little price in start and then 2 years instalments. This way Bahria Town has gone through very successful Sector-D and Sector-E launching. Investors has earned many times of their investment in just few months.

More and more people rush to buy such a cheap plot with elite class maintenance in society that again create a high demand low supply and prices shoots like a bullet.

Afterwards they launch commercial plots of Sector-F which also goes very well and investors double and triple their investments in few months.

After that much speed, it even happened that prices start to change on daily basis and even on morning evening basis, you buy something in morning and sell it on profit in evening.

It was like heaven for investors and they wish that night never came and we keep on earning money more and more and more…

Reasons Of Fall In Bahria Town Investment

Let me clear you one thing at start, fall of investment in Bahria Town is not due to discontinuation of any of the services mentioned above. Above all services are still the same and much more better services has been added as well. It is still a very good place to live, but investors are stuck due to below reasons.

LDA Campaign To Let Down Bahria Town Lahore:

LDA never complain or point out any housing society in such a way that they place the road hoardings in whole city by pointing out one specific name. It might started after construction of Bilawal House in Bahria Town.

Many investors ask the question at that time that what is going to happen, I wan’t to take out my money. Few who were just trying to get themselves in this business also get aware with such quarrel with a Govt. institution (which is always dangerous).

Question arose that Govt. is taking CVT daily from transfer of Bahria Town plots and they have never complain that it is not approved, why this suddenly happen? Well now banner are off the road and no one remembers about it.

Civic Commercial Project:

Investors have doubled their money in just three months in commercial plots, so when Bahria Town management announces the Civic Commercial projects everyone try to get the booking. When Bahria Town release the map, there was nearly 800 commercial plots (it is really a big number). Supply was really big, so the demand drops and price as well.

People have paid Rs. 5,000,000/- for booking of one 5 marla commercial plot over there. It means that Rs. 4,000,000,000/- got stuck as the sale stops due to heavy supply. That much amount of investors got stuck in this project.

This is one of the main reason of fall of investment in Bahria Town Lahore.

Private Commercial Plazas:

When investors were enjoying the boom period where prices increases in weeks and days they totally depend and trust on their property dealer/advisor.

Property dealers were also enjoying such a boom and many of them started their joint ventures of constructing commercial buildings.

There is a mentality of Bahria Town investors that they don’t care how much money they have to give at the end (the full price of property). They only see that how much down payment we have to pay right now. Because most of them don’t really want to go for full payment, they only need to invest for few months and then sale it, earn their profit and invest in other deal.

Property dealers first sell whole commercial building with all the shops on each floor at very high rates to their customer according to the speed of market. They even sell first and second floor shops of 225 sq feet at the price of nearly 9,000,000/- (just for 225 sq feet, and on upper floors)

No one realize the full price of plot. At the end, one person has to pay the full price and keep that shop with it. If that do his own business then a business would be really small (according to size of shop). If he rents out the shop than at second floor, in that small shop, I believe the people would come up with bangles shops or mehndi shops etc. which will pay rent like Rs. 8,000/- per month.

After spending Rs. 9,000,000/- you are getting sleazy Rs. 8,000/- won’t sound good to anyone at all. These projects are the second big reason for fall of investment in Bahria Town Lahore.

Again Supply Demand Theory:

After launching of Sector F commercial which remains profitable. Bahria Town launched three more sectos with lots of plots.

• Sector-F residential plots
• Golf View Residencia with commercial and residential plots
• Bahria Greens

Where investors are stuck in Civic commercial plots and commercial plazas, how come they invest in these lots of new sectors and plots. Here the supply of plots increase with the current capacity of investment in market.

Conclusion:

For living it is still a wonderful housing society. It won’t be a lie if we say that Bahria Town is giving the best living experience in whole Pakistan. This is the reason that even in this slow market, people are still constructing houses and shifting to Bahria Town Lahore.

On ground plots are still showing appraisal in price but the increase rate is slow because most of the investor’s money is stuck in above mentioned projects. This is the time to invest in on ground plots and house construction.

Market is expected to get better as Bahria Town management has already lesson down nearly 200 plots from Civic commercial and right now rumours are that Bahria Town is merging more 150 approx plots.

At the end let me tell you one thing that owner of Bahria Town (Pvt.) Ltd. Mr. Malik Riaz is a game changer, whenever he plans to lift up the prices and projects of Bahria Town, he’ll surely play his part and will turn the market all around. I’m sensing that good days of Bahria Town investment is not years away, it seems to be near somewhere. Hope for the best…