Wednesday, July 29, 2015

Installments Plots Trap Explained (Lahore Real Estate)

I am a housewife and I am interested in purchasing a file with my monthly savings. Can you advise me where should i invest where i can make a down payment and then pay installments every month. Down payment amount is not an issue and i can pay installments of upto 1-1.5 lac per month. I was interested in lda city but i heard that this scheme is a flop. I am not looking for immediate profit but i want to leave this for some 15 years as i intend to buy for my kids. Jazakallah khair and prayers for your help. 
(Mrs Ahmad)

This post is for answer to question of Mrs Ahmad 

For past many years I have witnessed looting by many big and small real estate developers of some very needy people who cant afford to pay cash amount to buy a property but are able to afford some savings of from hard earned money from working in very tough jobs and by working extra hours to make it possible to have plot where they can build their future dream house. 

I have tried dozens of times in past to warn people not to get into installments plots booking trap. wrote post after post begging people not to book new projects that are launched one after another every months. Some of these developers have less number of plots in their projects than the number of times they launched projects for same land. Its done shamelessly every month because there is now low in Pakistan to stop all this looting. Before I go any further I will tell you a true story.

Bahria Town launched Awami villas project and offers 5 Marla house in 3.5 lacs that included land cost and the house construction. 1000s of 1000s very poor people booked these villas in Lahore and Rawalpindi. I cant tell you the exact number but trust me I got dizzy when I saw actual number of these villas that were booked on both cities.

After these villas were launched two brother and sister came to my office. Lady just retired from teaching job few months ago and was doing tutions to make money. One brother was going to retire same month from his Pakistan railway job and 2nd brother was still working in KSA as laborer but was on visit to Pakistan and had very small saving amount from his job there. They told me what they are what is their saving and what they plan to do. They said someone told them from website you guys are biggest dealers in Bahria town and job we have can be only done by Lahore Real Estate. They said we all three want to live on same street next to each other but there is no place where they can find even a plot of five marla in about 5 lacs saving each one of them have. They said we saw TV ads and newspapers ads that Bahria Town is offering these very cheap houses and promising in all TV programs that they will deliver them before installments are paid because Bahria Town is important machinery to build them in days from Malaysia. They said all news anchors like Kamran Khan is praising Malik Raiz in one hour program how he is going to do it. They said we could have bought these villas from market but our fried in KSA said only go to LRE. He told us only LRE can ask Bahria to either allot them all three villas next to each other if not please buy a 3 villas from open market for us.

After listing to them me and my brother Adil Saeed tried to convince them for full 2.5 hours Its not like what they are seeing in newspapers and seeing on TV. Its not practical at this price even if Malik Riaz is serious. These villas will never be built. Please save your money because this is your life saving. You will lose money and also lose your sleep. Gave them detailed example of BT 9 Pindi. Told them for our small commission amount we just cant commit this crime especially when all three of you are so simple hard working salaried people. I especially got very emotional because my mom also worked all her life as school teacher too to earn bread for us like my dad because dad job salary was not enough to meet our family daily needs. But after 2.5 hours me and Adil bhai gave up. All three said they have no other option and want to take risk even knowing the full story from me about Bahria Town phase 9 Rawalpindi that I had posted here many years ago too near and after launch of that BT phase 9 Pindi. We told them ballot is not done and Malik Raiz wont listen to us. BT only ask our help in setting up new rates for BT sector C etc and we only buy sell ON GROUND plots Bahria Town Lahore canal bank sector A B C only. We were not dealing in BT 9 or Bahria Town Orchard It was made cleared to each client at that time. To make story short we bought villas for them at lowest posible price of OWN (Profit money on booking) and didnt charge any commission to them. Told them IF ballot is ever held come back to us and we will try to get three villas next to each other from market with lowest cost. They were so happy Its cant be put in words here. 

About 3.5 years all 3 once again walked into my office and Me and Adil were always sitting in same room. When we saw them through office glass window before they entered our room Adil said they are here to sell those villas. Sure enough they came in sat on sofa and all three started to cry with tears flowing in their eyes. Adil had to go for multiple DHA transfers for a very rich client from Karachi but he stopped and sent other LRE team member for completing 1st transfer after looking at these three persons in tears. They said we paid all installments we paid excess development charges but still there is no location no Awami villa not even a location where it will be located in Lahore. They said each of them is going to lose 3.25 lacs of them after net payments because no one want these Awami villas and Bahria town is refunding only paid amount after taking 20% out as penalty for cancellation and not OWN ( Profit money ). They said they are three are so ashamed for not listing to us. Even though LRE was largest dealership dealing in Bahria Lahore only plots at that you guys refused to sell us those villas. Didnt charge us any commission. Please do charge us this and past commision and sell these villas at first call while we are here. We dont care about price any more. Just sell them and get us out. Take out rest commission adnd pay us rest of the money. 

They insisted us to make a call to some dealer or buyer and dump these villas now. They are never going to buy an plots on instalment and will prefer to stay in 5 marla house for all three families but will only buy it when they have cash to buy it. This is what we suggested them when they came to our office to buy these villas. Adil bhai told them to give us original papers they had in hand told them to wait for his call to come back. They left.
Adil and me also had tears in our eyes after they left. Adil told me bhai If you dont mind I am going to to skip all my transfers for party from Karachi to help these three get best possible price. He also said we are not going to charge any past or even this commission if its ok with me. I told I am proud of you for saying this. Go ahead try your best to get them maximum money back by reducing their loss. Till today me and Adil cant forget those people or that day and those facing of all three very very simple people. Their Villas were sold on couple of days at best market rate at that time and loss was reduced to 2.5 lacs each

This is one deal that unforgettable out of 1000s deals we did in past 12 years and may have forgotten.

Now lets get back to how this fraud of installments bookings is actually play

Developer get a team of dealers ready. Mostly dealers that deal in his projects frequently. Offers them 5% to 15% depending on how fast or slow market is or how bad his project that may need lot of work to convince clients to book in the project. Dealers get this 5% to 15% amount on booking his each plot book the plots for clients. Dealer books it and developer makes payment right away from booking amount. 

Developer if he have land for 1000 plots will book 3000 plots with massive campaign of newspapers full page ads TV ads and all dealers plots wanted advertisements in Jang newspaper separately for team of 50 to 100 dealers. These daily wanted property starting from couple of weeks before actual launch of NEW PROJECT from same developers are fully paid by the developers them self. Dealers names and phone number are used on massive fake wanted plots campaign.

Developers set a pre launch price for 1000 plots lets assume at 10 lacs (For 2 Lacs dicscount on launch price of 12 lacs). 

Dealers now start to offer pre booking at 10 lacs to their own clients showing them newspaper and saying look at all these plots wanted ads in Jang in last 2 weeks. There is already massive demand for plots for this developer old projects and new project is about to be launched soon. Book a plot here as it will be hard to find any plots after official launch and you may have to go for ballot to get a plot here. Maximum pre launch booking is done. 

Developers start to offering another 1500 plots to book at 12 lacs each plot.

A massive newspaper and TV ads campaign along with plots wanted ads from dealers paid by developers is launched. Developers own marking team starts booking at 12 lacs each plot. Dealers call its clients that booked at 10 lacs to buy book more plots at 12 lacs because he is already in paper profit of 2 lacs compared to developers booking.

Booking time ends developers and dealers play games of high own on 12 lacs launch price claiming there is still too much demand in market. But If you want to sell there is no buyer at any price. 

About 1 to 2 month later dealers and developers go to sleep. All newspaper ads are gone. Developers start to offer his last lot of 500 plots out of 3000 plots against. If market is fast developer sells as many plots in shortest time he can until plot gets into loss of about 40% from booking price. If market is slow he sell enough plots to keep his plots 40% lower than market. Developer wont give you how many total plots sold. When a ballot will be held. What will be actual location. You are on your own. You wait for 1 or 2 to hope price will improve to recover loss. Than you will sell plots at loss to same dealers that booked it for you. He buys plot for developers and gives back to developer gets his 5% commission again from developer. Or you return to developers and take 20% loss on paid amount. developer uses same files to sell in market again. Developer keep playing games by selling his files in market at his price when ever price gained a little. And than buy back to lock profit. Since supply is endless you can win. Developers is also geting his files back with each rufund so float in market is shrinking back to 1000. When that number of 1000 files for 1000 plot land is reached a ballot is held. 

Those who held it for 3 to 5 years from launch day during this pain full time of major losses could now see a plot go in profit due to market conditions of surrounding plots lower number of available plots after developer got all his extra files out of market. If your plots was worth 18 lacs. You booked at 12 lacs plus had to pay 3 lacs development charges. Your net cost is 15 lacs and price is now 18 lacs. At this point you are hit with one last hammer again in form of 3 lacs extra development charges. Your are back to where you started at 12 lacs. If you started at 10 lacs pre launch you have made 2 lacs gains. 

You took all the pain and headache all the stress but developer walks away 3 lacs more profit with downing any thing but paperwork. 

After extra development charges are paid by you a ballot is held. Developer gives you a plot on boundary or very bad location. He keeps are cream plots to him self. Developers sells his cream plots and start to wait for you to sell your very bad location plot. 

Each time you go to your dealers NEW office to sell your boundary location plot. Your dealer that was on a motorcycle when you booked plots on pre launch has a new BMW parked outside his office. At this time he will have at least 6 to 8 inch long beard and saved head with a pug on it and most likely be on an Umrah trip with all his family asking Allah to forgive his past sins for robbing you for so many years.

Best time to buy an installment plot is after its ballot is done and extra development charges are already imposed. 

If you start saving your money today. You will have enough funds in hand after years of saving to buy same plot that you were going to book on installment at 10 lacs pre launch. I am 99.999% sure.

In DHA or Govt projects or Fazia projects you dont get above games and extra development charges injections.

syed shoaib replied on Saturday, May 9, 2015 05:54 AM PST 

I was doing engineering few years back and all other sibling were studying too. but all those years i was not able to live happily because parents health issue and of two events that put half of hard earned savings of father on stake , one an uncle scam us on sunder industrial plot, second we paid installment for years in bahria town sector c, both files were cancelled because they were on best location and only two installment was delayed but submitted , both files were bought by mamu in 6 lac own ,they made us to settle in orchard , father is always against installment thing , it paid us a lot and drag me into property thing, orchard plots i sold cheaply to meet needs ,always on grounded plots pay sufaid posh ppl. my lil experience.

syed shoaib replied on Saturday, May 9, 2015 06:17 AM PST

And to add up to this life teaches u many things , i have high ranked close army relatives but no one came to rescue us or to uplift justice , nor we relied on anyone because when my dada renowned syed in his old age migrated from near by punjab but indian side and got 10 percent of land from claim he used to have in other side of punjab , locals now famous politiceans near that land steal it from dada and his lil sons and dada brother who was a local and living already near lahore and high ranked gov servant and land owner of good piece of land where now dha of lahore is never came to help so u r alone with ur troubles , only u have to sort in end so better dnt put yourself in trouble.

syed shoaib replied on Saturday, May 9, 2015 06:31 AM PST

New lahore city good reputed developers but still i think they over booked as in lda record they own only 300 kanal , park view multan owned or co owned by aleem khan though i am supporter of pti but beside , few ppl got plot in early blocks but majority waiting in park view to get their plots after possession , i will only suggest go for installment even in military schemes only.

Tahir replied on Saturday, May 9, 2015 07:08 AM PST

CMY: Thanks for sharing; to educate and save common folks of Pakistan.

Overthesea replied on Saturday, May 9, 2015 10:31 AM PST

Appreciated, an eye opener reality. but keep it re-posting once a month as people have tendency to forget.

Hussain Kaisrani replied on Saturday, May 9, 2015 01:00 PM PST

CMY - My Guru! Salaam,
I am your fan ever since you started writing online. I try to read every single word you write on this page and learn a lot.
You have very rightly explained how developers play games with the help of dealers. I have also written about these market strategies but your way of writing and sincerity is simply remarkable.
Having said that this game is only good for experienced players / investors.
Thank you very much for this detailed piece of information.
I wish and pray for your good health and speedy recovery.

saima replied on Saturday, May 9, 2015 01:13 PM PST

i am the victim of islamabad new city in ppp benazir government,cda and nha scheme of govt of pakistan,paid for two plots and zardaree ran away with our life savings.Allah will do justice inshAllah if not here on the judgement day.

CMY replied on Saturday, May 9, 2015 01:41 PM PST

Hussain Kaisrani bhai you cant imagine how happy I am right now to see you here. Welcome back and stay here. I know you are more crazt than me to help expat friends. You and Raheem bhai Assad were just too amazing people here I loved to read each post and lean a lot from them.

You was always great help to my expat friends for Bahria Town area. You know I my self only dealt with DHA while Adil Bhai was handling all Bahria side projects. Since I came here poor Adil has so much call volume he dont have any time to do any thing other than to his Namaz time.

I know you are very busy but If you can answer here and there for Bahria that will be big help for me to learn latest ground realities there.

Again I am delighted to see you. We just got to find Raheem Bhai too now :)

Choudry Mujahid Yasin ( CMY )

Hussain Kaisrani replied on Saturday, May 9, 2015 08:44 PM PST

Thanks a lot dear CMY! I am always there on this page brother. Highly obliged for your kind words about me and my work dear.
I really enjoyed following comments of yours as I am witness to it. I have personally seen a top most dealer of Lahore in brother Adil Saeed office recently who was almost crying and confessing about his frauds with hundreds poor people in bookings of very famous project.

"Each time you go to your dealers NEW office to sell your boundary location plot. Your dealer that was on a motorcycle when you booked plots on pre launch has a new BMW parked outside his office. At this time he will have at least 6 to 8 inch long beard and shaved head with a pug on it and most likely be on an Umrah trip with all his family asking Allah to forgive his past sins for robbing you for so many years."

(Courtesy: Lahore Real Estate)
 ملک ریاض کا طریقہ واردات

ملک ریاض ایک شخص کا نہیں بلکہ ایک طریقۂ واردات کا نام ہے۔ اُن کے متعلق کوئی شخص بھی زبان کھولنے کے لئے تیار نہیں ہوتا۔ اُنہوں نے بے پناہ دولت کے ذخائر جس طرح جمع کئے ہیں ، وہ اگر دیانت داری سے کئے ہوتے تووہ ملک میں ایک مثال بن کر جیتے۔ مگر وہ سیاسی اور فوجی اثرورسوخ کے ساتھ ایک خاص طریقے سے کاروبار کو برتتے ہیں جس کا اندازا بہت کم لوگوں کو ہیں ۔ وہ اپنے ہر پراجیکٹ کو ایک انوکھے فراڈ سے کامیاب بناتے ہیں ۔ مگر پاکستان میں فراڈ کو جانچنے کے لئے درکار ضروری دیانت داری کا دور دور تک کوئی نام ونشان نہیں پایا جاتا ۔ چنانچہ ملک ریاض کے خلاف قانون کے حرکت میں آنے کا مطلب اس کے سوا کچھ اور نہیں ہوتا کہ ایک بار پھر نئے لین دین کے آثار اور امکانات پیدا کردئے جائیں۔ ملک ریاض کے فراڈ کے ہمہ گیر طریقہ کار کو کسی بھی ایک تحریرمیں پوری طرح سامنے نہیں لایا جاسکتا۔ زیر نظر رپورٹ میں اُن کے مختلف النوع فراڈ کے محض ایک پہلو سے پردہ اُٹھایا جارہا ہے۔ جو اُن کی ہاؤسنگ اسکیموں کی کامیابی میں ایک کلاسیک ماڈل کی حیثیت اختیار کر گیا ہے۔
ملک ریاض صاحب کا طریقۂ واردات یہ ہے کہ وہ جب بھی کسی نئی ہاؤسنگ اسکیم کا اعلان کرتے ہیں تو اس کے لئے ابتدائی ادائی (یعنی ڈاون پے منٹ )اور اس کے ساتھ وصول ہونے والی پہلی قسط کی مالیت بہت کم رکھتے ہیں۔ جس کا مطلب یہ ہوتا ہے کہ ایک عام آدمی اس ا سکیم کی طرف متوجہ ہوجاتا ہے اور سوچتا ہے کہ اتنی کم ابتدائی ادائی سے وہ پلاٹ لینے والوں کی دوڑ میں شامل ہو سکتا ہے۔ یعنی اگر انہوں نے مارکیٹ میں پانچ مرلے یعنی 125 گز کا پلاٹ اگر بیس لاکھ روپے میں بیچنا ہے تو وہ اس کی ابتدائی قیمت کو کبھی بھی ایک لاکھ سے اوپر نہیں جانے دیں گے۔ اب وہ کرتے یہ ہیں کہ اگر انہوں نے ایک اسکیم میں ایک ہزار پلاٹ کاٹنے ہیں تو وہ ان ایک ہزار پلاٹوں کے عوض دس ہزار فائلیں بناتے ہیں اور ان دس ہزار فائلوں میں تقریباً اڑھائی سے تین ہزار فائلیں اپنے ان پالتو 2600 سے زائد پراپرٹی ڈیلرز میں تقسیم کر دیتے ہیں جو پورے ملک میں پھیلے ہوئے ہیں۔ یہ پراپرٹی ڈیلر پورے ملک میں ماحول بناتے ہیں اور عام لوگوں کو قائل کرتے ہیں کہ اس ا سکیم سے تو گویا تیل ہی نکل آنا ہے اس لئے اسے سرمایہ کاری کے طور پر ہی سہی خریدنا عین عقل مندی ہے۔
یہ پراپرٹی ڈیلر پچاس ہزار کے عوض خریدی گئی اس فائل سے زیادہ سے زیادہ منافع کمانے کے لئے اسے زیادہ سے زیادہ مہنگا کرنے کی کوشش کرتے ہیں۔ یوں یہ پچاس ہزار کی ابتدائی ادائی والی فائل کو جیک اپ کر کے کم از کم دس لاکھ روپے تک لے جاتے ہیں۔ اس دوڑ میں جیسے ہی فائل آٹھ لاکھ کی سطح پار کرتی ہے تو ملک صاحب بذاتِ خود باقی سات ہزار فائلیں بیچنے کے لئے مارکیٹ میں اتر آتے ہیں۔ اور یوں ایک ایسا کاغذ جس کے پیچھے کوئی اثاثہ موجود ہی نہیں وہ مارکیٹ میں مہنگے داموں بک جاتا ہے۔
جب وہ اپنا یہ سارا سودا بیچ لیتے ہیں تو پھر ایک دم اسی سکیم کے بارے میں منفی خبریں مارکیٹ میں پھیلادی جاتی ہیں ۔ مثلاً یہ کہ ترقیاتی کام نہیں ہو رہے۔ فلاں سیاست دان ملک کے خلاف ہو گیا ہے وغیرہ وغیرہ اور یہ خبریں پھیلانے کا سب سے بڑا ذریعہ یہ پراپرٹی ڈیلرز ہی ہوتے ہیں۔
اس کے بعد سب سے منفی خبر یہ ہوتی ہے کہ پلاٹوں کی باقاعدہ فائلیں کھلوا کر ادائیگی کا شیڈول بحریہ ٹاون کی انتظامیہ سے طے کر لیا جائے اور اس کے بڑے بڑے اشتہارات اخبارات میں چھپوائے جاتے ہیں۔ اب اعصاب کی جنگ شروع ہوتی ہے۔ کئی لوگوں نے سرمایہ کاری کے جوش میں ایک سے زائد اور بعض نے درجنوں فائلیں خرید لی ہوتی ہیں جب کہ ان کی اوقات ایک فائل کی قسطیں ادا کرنے کی نہیں ہوتی ۔ لہٰذا وہ یہ کرنے کی کوشش کرتی ہیں کہ کچھ فائلیں بیچ کر بقیہ کی قسط ادا کر دیں، لیکن ہوتا یہ ہے کہ کچھ عرصہ پہلے وہی پراپرٹی ڈیلر جو اس فائل کو دس لاکھ روپے میں بھی سستا کہہ کر سرمایہ داروں کو تھما رہے ہوتے ہیں وہ اب یہی فائل دو لاکھ روپے میں بھی خریدنے کے روادار نہیں ہوتے۔ بہت سی صورتوں میں تو یہ فائل اپنی اصل قیمت (ہمارے اوپر والی مثال میں پچاس ہزار روپے میں ہی ) بک پاتی ہے۔
اب ملک صاحب اپنے ایجنٹ پراپرٹی ڈیلروں کو رو بہ عمل لاتے ہیں اور دس لاکھ روپے میں بیچی گئی فائل کو پچاس ہزار روپے میں واپس خرید کر ضائع کرنا شروع کر دیتے ہیں۔ کچھ لوگ ناگزیر وجوہات کی بنا پرقسطیں نہیں دے پاتے اور انتظامیہ ان کو قطعاً نہیں پوچھتی۔ لیکن جب وہ انتظامیہ سے رابطہ کرتے ہیں تو انہیں بتایا جاتا ہے کہ ہم نے تو یہ فائل پچاس ہزار روپے میں بیچی تھی، آپ نے دس لاکھ میں خریدی تو اس میں ہمارا کیا قصور؟ آپ نے ساڑھے نو لاکھ روپے کا پریمئم ادا کیا تھا ، ہمارے پاس آپ کے پچاس ہزار روپے محفوظ ہیں جو پندرہ یا بیس فی صد کٹوتی کے بعد آپ کو واپس مل سکتے ہیں۔
اص صورت میں زیادہ امکان تو یہی ہوتا ہے کہ جب تک ان کی ایک ہزار پلاٹوں والی ا سکیم اپنے اصلی خد و خال میں واضح ہو کر پلاٹوں کی قرعہ اندازی کے مرحلے تک آتی ہے تو مارکیٹ میں ایک ہزار فائلیں ہی باقی رہ جاتی ہیں۔ لیکن اگر کچھ فائلیں زائد بھی ہوں تو پھر آواز لگا دی جاتی ہے کہ وہ زائد لوگ اپنی فائلیں پہلے سے بنی ہوئی کسی اسکیم میں ایڈجسٹ کروا لیں (جیسا کہ ڈی ایچ اے ویلی کے دس ہزار پلاٹوں کو بحریہ ٹاون کراچی اور بحریہ ٹاون راولپنڈی میں ایڈجسٹ کروا لینے کے اشتہارات آج کل اخباروں کی زینت بن رہے ہیں) ۔ یوں جن ایک ہزار یا اس سے کچھ زائد لوگوں کو پلاٹ مل جاتے ہیں وہ پورے شہر میں ملک صاحب کی عظمت اور دریا دلی کے گن گانے کے لئے موجود رہتے ہیں اور سینکڑوں راتب خور پراپرٹی ڈیلر ان کے علاوہ۔ اور اس پر مستزاد میڈیا پر چلنے والے اشتہارات کی بدولت ان کی عظمت کا سورج ہمیشہ سوا نیزے پر ہی رہتا ہے۔اور لٹنے والا اپنی قسمت کو کوستا رہتا ہے۔
اس میں ایک اور اہم بات یہ بھی ہے اپنی ا سکیم میں اس جوئے کو مزید معتبر بنانے کے لئے وہ کسی نہ کسی حاضر سروس جرنیل کا نام بھی استعمال کرنے سے باز نہیں آتے۔ مشرف دور میں لاہور میں متعین جرنیل صاحبان کو فائلیں تحفے میں دی گئیں۔ فرض کیا جرنیل صاحب کو تحفے میں دو فائلیں دی گئیں لیکن ان کے نام سے دو سو فائلیں بیچی گئیں۔ اب خریدنے والا تو یہی سمجھے گا حاضر سروس جرنیل دو نمبری کیسے کر سکتا ہے۔ اور یوں ان کے کاروبار کی ساکھ کو وردی کا سہارا بھی دستیاب ہو جاتا ہے۔
تو اس کیس میں وہ ہزاروں فائلیں اور ان کے بدلے سٹّے بازی سے کمایا گیا پیسہ ہی ان کی اصل کمائی ہوتی ہے اور وہ پلاٹوں کے خریداروں کے پیسے ایمانداری سے ا سکیم کی ترقی پر لگا دیتے ہیں اور ان کی ا سکیم باقی اسکیموں کے مقابلے میں بہت بہتر صورت میں سامنے آ جاتی ہے۔
رضی نامہ
ملک ریاض کا طریقہ واردات
رضوان الرحمن رضی
کالم نمبر 227
تاریخ اشاعت 13نومبر 2015ء

Saturday, July 25, 2015

Lahore Ring Road Impact on Bahria Town Lahore – The Good and the Bad (Abu Bakar Hijazi)

Bahria Town Lahore is one of the city’s most popular and modern housing societies, but the initiation of work on the southern loop of Lahore Ring Road (LRR) has created a bit of restlessness among the landowners and property investors in this unique suburban locality, since it is expected that LRR will cut through it. These people are keen to know the benefits and/or disadvantages of LRR passing through Bahria Town, so let’s discuss them here.

What is the main reason why many people don’t like the idea of living or investing in Bahria Town Lahore? It is, of course, the project’s distance from the city’s central locations. Bahria Town Lahore is located 15 kilometers from Kalma Chowk and this is the main reason why many people do not consider it the ideal place to live or invest in.
With LRR passing through Bahria Town, the distance issue will be resolved. Via LRR, the residents of Bahria Town will have all major locations of the city within easy reach. As and when the southern loop of LLR is completed, Allama Iqbal International Airport and DHA Lahore will be just 15 and 10 minutes away from Bahia Town respectively, while other major areas such as Ferozepur Road, Mall Road and Gulberg will also become more approachable from the society.
Per the information I have come across, LRR’s route through Bahria Town will bring it close to the Grand Jamia Masjid of Sector C. If this route is finalised, Iqbal Block, Rafi Block, Jinnah Block (a small area only), E Block and Overseas Block Extension in Bahria Town Lahore will be directly affected.
Property possession in all of the above-mentioned blocks is available and many landowners have already started construction. Along with residential plots, some commercial plots in Sector E will also see the negative effects of LRR. The plots that might fall within LRR’s proposed route and right of way are located on both sides of the circular highway in E Block, and to the best of my knowledge they are plots number 01 to 24, 59 to 106, 149 to 172 on one side and plots number 01 to 16 and 47 to 81 on the other side. However, please let me point out that this is unconfirmed, and only the Bahria Town management can tell you with certainty exactly which properties will fall under LRR’s final route.
The owners of these plots are likely to be troubled if their properties are taken up by LRR, because one of two things will happen: Bahria Town’s management will offer them compensation, or the government will pay them per the market rate.
The Deputy Commissioner (DC) rate of these plots is PKR 200,000 per marla. According to some unofficial news sources, the CEO of Bahria Town has announced that Bahria Town will pay the market rates of these properties to owners or adjust their properties in other blocks. Sadly though, the market rates of these plots are dropping, for obvious reasons.
I have also heard that the Bahria Town management is not willing to allow an overhead bridge for LRR since it would compromise the peace and security that Bahria Town is known for. In the absence of an LRR overhead bridge in Sector E, it would become very difficult for people to move between Sectors E and F, since LRR necessarily has to be signal-free. Because of mobility and accessibility issues, investment in these blocks will also decrease, which will cause their value to depreciate further.
In my opinion, the disadvantages of Lahore Ring Road for Bahria Town far outweigh any positives, but the Bahria Town management seems to be busy tending to other matters. Mr Malik Riaz needs to understand that the investors who trust his vision and strength to handle such issues are waiting for him to do something to protect people’s life savings.

Tuesday, July 21, 2015

NEW Lahore City, Lahore - A project Millennium Land Development, Rafi and Zatoon Group

NEW LAHORE CITY is a project of Millennium Land Development owned and managed by Rafi Group and Zaitoon Group. Both (Rafi and Zaitoon) Groups already have a great name in construction industry. They are the pioneers in construction of plazas in Lahore. Commercial Plazas in Lahore like Empire Centre, Rafi Plaza, Central Plaza, Empress Tower, Defence Shopping Mall and Landmark Plaza are on Rafi Group's credit.

On the other hand Zaitoon Group's projects are not only very well known but now taken as landmarks in Lahore City. These are Zaitoon Plaza, Japan and Lucky Centre, Centre Point, Land Mark Plaza.

Rafi Group taken a step further when it started a land development project - Green Acre Farm Housing Scheme.

Rafi and Zaitoon group joined hands to start a residential project with the name of New Lahore City couple of years ago. The rates and options of different size residential (5, 10, 20, 40 Marla)  and 5.3 Marla commercial plots announced at the time of booking are reproduced here.

New Lahore City is the last existing residential project on Lahore Canal Road along side Multan Road. Its main entrance gate is situated on 3 Km from NFC phase 2 and 4 Km from Bahria Town Lahore. A high quality road on Canal Road now links it to Bahria Town Lahore. Around 2 km Grand Avenue of New Lahore City is fully functional with few property offices there. I remained in the area for more than two hours but no visitor / customer was seen there.

On the back of these property offices there is an area of around 200 kanals which is fully developed. Other than that there is no development seen though out the New Lahore City. As it is surrounded by villages so there is almost no chance that it will be having any significant expansion near canal road.

New Lahore City announced its Premier Enclave on relatively high rates only few months ago. There were rumors in the market that its management succeeded in buying a chunk of land in which Bahria Town was highly interested for its Sector F. If it is true then newly launched Premier Enclave would be much deeper and almost touching and connecting Sector F of Bahria Town Lahore. The on gound situation of the project also suggests that it would be at least 5 km away from Lahore Canal Road.

The standard of present development (other than its 150 ft Grand Avenue) is of quite normal level. The developer could not succeed in completing its first phase yet. The pace of development work is not noticeable and almost no machinery seems on work. It is obvious that project is not likely to shape up within next 3 years. The pioneer members are still waiting for balloting and their desperation will obviously increase if the situation remains the same.

The Society will also be having access from Sui Gas Phase 2, Bahria Town Lahore and NFC Phase 2. The location of New Lahore City will be more attractive after the construction of Lahore Ring Road.


It seems that the developers will wait for the construction of Lahore Ring Road in the area before announcing final plan and starting the development. It is, therefore, a long term project. There are many better options of investments available in the market in this rate and range.

Thursday, July 16, 2015

Budgeting to build a high-end 5 Marla Home (Samra Zulfiqar)

Once your children get married and busy with their lives, the once roomy and lively house becomes empty, echoing with memories of the days when the big house was a blessing for you. A place where your toddlers could run around, play hide-and-seek and have fun while you were sure of their safety. But once the nestlings have grown up and moved on, folks with big, lavish houses often find smaller homes to be cosier.
In addition to that, management and maintenance of smaller houses is way easier, which has given birth to the increasingly popular idea of building a smaller house for personal use and renting out the bigger one to generate additional income. With the upper and upper-middle class drawn to living in smaller houses, these smaller houses are no longer cheap. In fact, many of the recently built expensive designer houses in upscale areas are 5-marla ones.
While it depends entirely on one’s budget and aspirations regarding a smaller house, this article will give you a pretty detailed estimate of the money required to build a small yet beautiful and cosy 5-marla house. Since folks shifting from bigger houses to smaller units are unlikely to compromise on quality, I am going to discuss the construction cost of an A-category 5-marla house.

Covered Area
In established housing societies of Pakistan, a certain amount of area has to be left uncovered in the form of side and back alleys, as well as a front yard or lawn. These construction bylaws are followed stringently in many posh residential communities. Out of the 1,125 square feet (5 marlas), approximately 1,000 square feet of land can be used as covered area. Therefore, the following rates and material presuppose a covered area of 1,000 square feet. Let’s also assume that you already own the land and the plans of the house are already approved by the authority concerned.

Labour Costs
The labourers who work with contractors usually stay with a project from beginning to end. For them, working on a project comes with job security and they are unlikely to charge extra. Their direct dealings with the contractor suits both parties and this partnership is most likely to work for the sort of construction quality you aspire to see in the house.
Labour cost is highly dependent on the construction period. While it suits the labourers to prolong the work in hopes of continuing to make more money, the builder has a deadline to meet. This deadline commitment allows the builder or contractor to make sure that work is completed on time and according to the standards they promised.
When labourers are hired through contractors, their wages are decided per the agreement, which, in the case of an A-category 5-marla house, expires in 3 months.
Total Cost: PKR 500,000

Grey Structure
Approximately 50,000 bricks are required to build a 5-marla house. These bricks would be enough to build the grey structure from foundation to rooftop. The rate of bricks is dependent on their quality and prices range from PKR 6,000 to PKR 9,000 per 1,000 bricks.
For A and A+ category houses, high quality bricks are preferred by the owners. Additional bricks are required to erect the boundary walls of the house.
Total Cost: PKR 500,000

Oddly enough, gravel (bajri) is measured in square feet when it comes to construction, and around 600 square feet of gravel would be required for a 5-marla house. The per-square-foot price of gravel is PKR 75. There isn’t any specification of quality in gravel so its rate is roughly the same all over the country.
Another form of gravel (bajjar) is used to form the base of floors. Bajar is made from broken up bricks, which acts as a firm foundation for tiled and/or marbled flooring. The contractors sometimes use the leftover bricks and have them broken up into smaller pieces to make bajjar, which is also measured in square feet. About 1,000 square feet of bajar would be required for a double-storey, 5-marla, A-category house. The per-square-foot rate of bajjar is PKR 40.
Total Cost: PKR 45,000 (bajri) + PKR 40,000 (bajjar) = PKR 85,000

The price of cement is PKR 500 per sack. Around 600 sacks of cement are required to build an A-category house. The rate of cement is set by the government and no brand can sell their product at a higher rate. So, no matter which cement brand you choose, be sure to pay the cost prescribed by the government.
Total Cost: PKR 300,000

Like gravel, sand is also measured in square feet, but contractors and builders calculate it by number of trucks. For a 5-marla house, five trucks of sand would be required.
Total Cost: PKR 30,000

The rate of rebar (sarya) is PKR 85,000 per ton, and about 2 tons would be required for a 5-marla house.
Total Cost: PKR 170,000

Once the grey structure is complete, it is time to do the electrical wiring. In many cases, the electricians work independently and are hired by the contractor. Two types of wires are used in houses, 3/29 gauge and 7/29 gauge. The former is used for the wiring of low-consumption appliances and the latter for high-consumption appliances.
Around 20 coils of 3/29 gauge and 6 coils of 7/29 gauge are required for the complete wiring of a 5-marla house. The average rate per coil of 7/29 gauge wire is PKR 4,300, and that of 3/29 gauge wire is PKR 2,300. The service charges of the electrician and the total cost of the wire together constitute the wiring expense.
Total Cost: PKR 100,000 (including wire cost of PKR 71,800)

The floors of an A-category 5-marla house are mostly done in tiles. Please note that although marble is cheaper, cutting, grinding and polishing makes marble flooring an expensive deal at the end. Good quality China-made tiles are preferred in high-end smaller houses. These tiles are mixed and matched with the more expensive Italian tiles in the form of patterns that add curb appeal to the floors. The cost of flooring the entire house includes bathrooms (3 attached, 1 powder room) as well.
Total Cost: PKR 500,000

Flooring is followed by woodwork. Wood is used in various parts of the house in the form of wardrobes, kitchen cabinets, doors, false ceilings, bathroom cabinets and decorative racks in the living room and drawing room. The rates may vary from vendor to vendor, but it is generally advisable to buy wood and let your carpenter carve it into cabinets and doors, rather than to purchase prefabricated ones from the market since you can’t be sure of the material.
Total Cost: PKR 350,000

Windows and Glass
Aluminium and glass work in houses includes windows and window frames, wire mesh, metal frames, grills and glass panes.
Total Cost: PKR 150,000

Sanitary Fittings
Sanitary fittings include wash basins, commodes, taps, showers and kitchen sinks, etc. An A-category 5-marla house is supposed to have high quality fittings. Please note that smaller houses often do not have bathtubs or shower cabins, so these fixtures are not factored into the price.
Total Cost: PKR 300,000

Assorted Fittings
Assorted fittings include doorknobs and locks, cabinet handles and switchboards.
Total Cost: PKR 100,000

The paint job should be done ideally after installation of switchboards and light fixtures. Painting a newly built house is tougher since it requires careful application of the base coat. The grafi, which is done on the exterior of the house, has an additional cost as it is weather-resistant and keeps the exterior from falling apart.
Total Cost: PKR 300,000 + PKR 100,000 (grafi) = PKR 400,000

So there you have it, a rough but detailed budget (of PKR 3,485,000) for building a high-end 5-marla house. If you are planning to build a house rather than buying one, you can be sure of saving around PKR 2 million. So, dear readers, don’t let the small hassle of monitoring the construction of your house make you pay extra, and enjoy the anticipation of shifting to a new home where you can make new memories!