In November 2015, when many societies in Islamabad, particularly Bahria Town and Bahria Enclave, were struggling with plunging rates and demand, the Bahria Town management announced the cancelation of Bahria Enclave 2. This obviously frustrated plot owners, who were already struggling with low demand in this particular project.
At the same time, many of these investors were anticipating the launch of Bahria Town Peshawar, so they did not mind selling at less-than-peak market rates so they could be ready for the upcoming project.
Factors that brought Bahria Enclave back to life
Things were in bad shape for months and then along came Galleria – a mixed-use apartment complex of Red Sun Associates spanning 39 kanal in Bahia Enclave H Block. The developer marketed the project extensively through print media and television. The concept of this project was too good to ignore and its presence in Bahria Enclave helped market the society indirectly.
The indirect marketing through Galleria, coupled with the activity seen during the merger and readjustment of Bahria Enclave 2 plots in Enclave 1, brought along a fresh wave of interest in this project.
If you buy that, fair enough. I, however, think that Malik Riaz’s Tweet about the delay in the launch of Bahria Town Peshawar is the main reason why investors are once again drawn to Bahria Enclave, Islamabad. Well, the timing of possession handover for 5- and 8-marla residential plots was also set accordingly to make it appear altogether a more concrete and rewarding proposition.
In Lahore, there is some real estate activity in Bahria Orchard, while Bahria Town at large is stagnant. In Karachi’s project too, there is hardly any news worthy activity. This, in turn, has led Bahria investors from other cities – those looking to bag short term gains – to head to Bahria Enclave.
Analysing the current activity, I have learnt that throughout this project, buyers are mostly interested in 10-marla residential plots. Their preference for plots bigger than 5 marla and smaller than 1 kanal suggests that they wish to remain within the domain that attracts the largest chunk of property buyers. Moreover, I have also found out that some sectors are more attractive for buyers than others. These include Sectors G, J and N.
Since Bahria Town has its head office in Sector J, which is also close to the recently announced Chairman Villa – the future residence of Malik Riaz – and has various other commercial attractions, property demand in this block is completely justified. It is, in fact, this sector where major price jumps have recently been witnessed.
Sector G is popular because possession for 8-marla residential plots is available there, while Sector N enjoys the perks of being close to Bahria Enclave’s Main Avenue.
Property rates in Bahria Enclave vary across sectors. Within particulars sector, rate difference is based on the location of a particular property; they are also different for areas where possession is available. On average, the rate of a 5-marla residential plot in non-developed areas is PKR 2,200,000; for those with possession available, the average rate is PKR 2,950,000. In Sector J, you can find a 10-marla plot for PKR 5,500,000, which was PKR 800,000 cheaper just a few weeks ago.
If you are familiar with how activity unfolds in Bahria Town projects throughout the country, you must have noticed that this demand and activity can drop as well as go up without giving any sign to an average investor. This is the traditional way of how Bahria Town investors like to play. If you wish to make use of such trends, you should go with the flow and bail out in time.
How can you determine if it’s time to sell in Bahria Enclave and invest elsewhere? Simply follow our blog. Moreover, never anticipate and wait for a profit higher than 20% in any Bahria project that’s hot among investors. Follow these tips and you will continue to make safe investment ventures in active Bahria projects.