Wednesday, October 23, 2013

Latest House Construction Cost, Rates and Estimated Time of Completion in Lahore - Pakistan (Updated on November 17, 2015)

(Special thanks to Nadeem Aftab Sahib who provided updated rates. His comments on the end of this post would help to understand the matter further.)

Labour Rate (Without material) Construction Cost (Updated on November 17, 2015)

Rates of Covered Area Rs.240/= to Rs.260/= per square ft.
Basement Rs.320/= to Rs.360/= per square ft.

Masonry work: Rs.25/= per square ft.
Plaster work: Rs.15/= per square ft.
Marble work: Rs.20/= per square ft.
PCC floor before tile / marble: Rs.20/= per square ft.
Excavation with machine (Free if you do not need excavated soil): Rs.2/= per Cft

Bricks: Rs.7,500/= for 1000 (Pattoki)
Sand Chanab: Rs.25/= Cft
Sand Ravi: Rs.10/= Cft (Ask for Mehmood Booti area)
Crush Sargodha: Rs.55/= Cft (if you buy directly from crusher)
Steel: Rs.88,000/= per Ton (it includes carriage, loading, unloading of 2000 tons)

Grey Structure Construction Cost (including material)

Rs.1200-1300 per square ft.

Finished (Turnkey) House Construction Cost

  1. Rs.2,000/= per square ft. (Normally Good)
  2. Rs.2,500/= per square ft. (Excellent)
  3. Rs.2,700/= per square ft. (Luxury)
These rates does not include water tank, septic tank, porch area, main gate, and boundary walls etc.
Moreover Pergola (front elevations) rate are taken as 50% of covered area rate.

Estimated Time of Completion

Generally the contractor would be ready to make a contract to complete a home (up to six months) but practically completion is not possible before 8 months. Labour class goes to their native area and work is fully stopped for at least two weeks on each Eid, Moharram and in April (to take part in wheat crop cutting). In general, labour belongs to same family / area so in some Khushi Ghammi they leave the work and come back only when nothing is left in their pocket.
After understand all these factors I would suggest that one should keep at least 8 months in the mind for completion of a home but the contract should be made of 6 months. If mutually agreed then some plenty should be included in the contract clause in case the responsibility of late lies on contractor and vice versa. There is no harm for decided an appreciation clause if the project is completed before time. This may be Rs.500 per day if the work is late by 15 days and Rs.1,000/= for more period of time.

I understand that this plenty would be only to pressurize the contractor and a moral obligation. It may help in avoiding unnecessary delay in the work.

December 2015 ------- I have been receiving requests from my readers of this blog to recommend a reliable contractor to them. I am sorry that I can not take responsibility of any one. 
Few friends gave good feedback about Muhammad Yousaf working in Bahria Town Lahore and surrounding area. If interested, you may contact him on your own responsibility.

Mr Yousuf 03009509487 & 03014173754 

======= Please visit following posts for further information =======

Saturday, October 05, 2013

Bahria Town Sector C and Overseas Enclave --- are Good INVESTMENT or not anymore?

Bahria Town Lahore Sector C and Overseas Enclave A WERE great places to invest till 6 months ago and ARE one of the best places to live now and in future.
The rates has gone so high that the scope of good return is relatively low as compared to other projects. The end user has already entered in it for construction of its house. Meaning both of these projects are now matured.
Having said that, Sector C and Overseas A, Bahria Town Lahore will keep on growing due to location and standard of living. But we should also consider followng main issues if the purpose is investment ONLY:

Non construction Charges


As per rules and regualtions of Bahria Town Pvt. Ltd., the owner of plot is bound to start construction of house within three years of possession announced / offered (There is misunderstanding found in the market that non construction charges are applied after taking possession which is not right. Whether possession is taken or not, non construction charges are applicable after the offer of possession by Bahria Town). Non construction charges are already applicable to all blocks of Sector C as well as Overseas Enclave A, Bahria Town Lahore. It is Rs.17,000/= per month for 10 Marla Plot and Rs. 24,000/= per month for 1 Kanal and so on.

Transfer Fees

Heavy transfer fees (which always keeps on increasing for old projects, blocks and sectors). At present the transfer fees of 10 Marla plot in Sector C is Rs.87,000/= plus.

Big Investment

New buyer needs to invest Rs.55 to Rs.60 Lac for investing in 10 Marla plot which is a minumum investment in Sector C and Overseas Enclave A, Bahria Town Lahore. An investor would try to find out some project where less investment is required and high return is expected. Both of these investments would, obviously, not be on top to consider in Lahore Real Estate.

Please do more research before making any final decision.

Tuesday, October 01, 2013

Bahria Town Pvt. Ltd. Latest Projects: Bahria Town Karachi and Bahria Green Valley, Lahore

I have been receiving emails for my recommendation about Bahria Town Latest and new projects - Bahria Town Karachi Projects and Bahria Green Valley, Lahore (also known as Bahria Greens, Lahore). I thought to share my views about both of these projects through blog for the benefit of my blog visitors.

Bahria Town Karachi Projects

It is very difficult to say anything about Bahria Town Karachi upcoming projects
  1. Bahria Town Icon - Pakistan's Tallest Building Plan (62 Storey Building)
  2. Bahria Town Tower - 24 Storey Building at final stage of completion
  3. Bahria Town Karachi - Master Planned Community (Villas and Plots)
We do not have any information regarding rate, payment plan and possession date. For Bahria Town Karachi, (as per Bahria Town track record) there is no idea of location of this project. It is obvious that it would be planned out of city area. As Karach is a very big city and commuting to city area is not safe so it may not attract the investors in the start.
I understand Bahria Town itself is not clear so it is asking for registration first. It is kind of feeler to understand the demand as well as to collect huge funds.
About 8 years ago Bahria Town Pvt. Ltd. started same strategy when it sold 85,000 HOME PLUS cards and charged Rs.6,000/= or US$100 with a commitment that the card holders will be receiving the application forms of upcoming projects at their door steps. It was January 2005 when Home Plus cards project was launched. Do you have any idea when was upcoming project launched? After 16 months, on March 22, 2006, Bahria Town started sending application forms of its Awami Villas Project to Home Plus Card Holders.
If we consider the track record and strategy of Bahria Town, the actual launch of Karachi projects would be after a year or so. This registration scheme will also help BT to understand the trend of investors in Karachi and the demand for these projects. This demand would be the main factor in deciding the pricing of project and payment plan.
Karachi is a business hub of Pakistan. Bahria Town can not afford to ignore its market and investors. Contrary to that, Karachi also needs these kinds of safe, secure living and business atmosphere which Bahria has planned to provide. As mentioned above, Bahria Town would take around a year or so to present some actual project plan. It will, in the meantime, play with the funds received from registration. I hope that Bahria Town will flourish in Karachi but it should be considered a long term investment.

Bahria Green Valley (Bahria Greens, Lahore)

I have recently written my views about the project. The Own amount has decreased almost to zero now. If you have funds then it is better to invest in 5 Marla plots in Bahria Orchard LOW COST SCHEME (A, B, C, D) or Overseas Enclave A / B. An ongoing rate is around Rs.16 Lac there.
 Bahria Green Valley (also known as Bahria Greens, Lahore) seems much expensive nowadays but when possession would be offered (after three years or so), there will be no chance to find a 5 Marla plot in any Bahria Town project less than Rs.25 Lac. I can recommend only if you do not have sufficient funds to buy existing plots in Bahria Orchard which are one of the best and small investment nowadays.

Bahria Green Valley - The latest launch of Bahria Town Pvt. Ltd