Lahore Smart City is a residential housing project being developed by Future Development Holdings and Habib Rafiq (Pvt) Ltd at the Kala Shah Kaku Interchange, directly accessible through Lahore Ring Road. Offering the same features and amenities as Capital Smart City, it is bound to be a hit among the developing housing projects in Lahore. Lahore Smart City has recently increased the pre-booking price of residential plots and issued a revised payment plan.
In this article, we analyse the effect of change in price on existing members and investors of Lahore Smart City. You will also find the new and old payment plans. Furthermore, we also analyse which payment plan is better for investors and end consumers.
New versus Old Payment Plan!
If you have already bought or booked a plot in Lahore Smart City during the first round of pre-launch bookings, the revised payment plan if a good news for you!
If you have not, contact your real estate portfolio manager right now for the best available option to benefit from the transition period. You can contact our featured agent, Sahban Tariq Malik ,who is authorized and diamond partner of Smart City at +92 334 5557734!
Launching Prices and First Payment Plan
The launching prices of Lahore Smart City are very similar to the launching prices of Capital Smart City. The price of 5 marla residential plot in Executive block was Rs. 1,800,000 (18 Lac) while the price of 5 marla plot in Overseas block was Rs. 1,900,000 (19 Lac).
Moreover, 10 marla residential plot was priced at 33 Lac in Executive block while 34 Lac in Overseas block. Similarly, the price of 1 kanal plot in Executive block was 54 Lac while it was 55 Lac in Overseas block.
Revised Prices and Payment Plan of Lahore Smart City
In September 2020, the company revised the pre-launching price of residential plots, one month after launching. As expected, the price of all sizes and blocks has increased significantly.
Moreover, the duration of the installment schedule has decreased from 3.5 years to 3 years which will further increase the quarterly installment.
The table below shows the comparison of new and old prices of Lahore Smart City.
|Revised/ New Price|
Take a look at the detailed (revised) payment plan of both overseas and executive block effective from 1st September 2020.
The price of 5 marla overseas increased from Rs.19 Lac to Rs.22.8 Lac. The quarterly installment increased from Rs.108,500 to Rs.152,000.
The total price of 10 marla in overseas block increased by Rs.680,000. The revised price is Rs. 40.8 Lac with an installment of Rs.272,000 per quarter.
The increase in the price of 1 kanal residential plot in overseas block is Rs.1,100,000. The new and revised booking price of 1 kanal overseas in Lahore Smart City is 66 lac Pakistani rupees.
The large increase in installment amount is due to the combined effect of increase in total price and decrease in term of the plan. The new payment plan is of 3 years instead of 3.5 years which increases the quarterly installment.
Stay tuned for updates on the market prices or “profits” on the old files! Sign up below to talk to our representative for a one-on-one consultation and updated market prices!
How does the New Payment Plan affect Existing Investors?
The revision in prices is a good news for existing members (investors) of Lahore Smart City as it will bring profit on the old files (files bought at the old price and plan).
Rest assured, the change in company’s booking price does not affect the payment schedule of existing members who have purchased plots at a previous rate. In fact, this is the actual good news.
How will the new price benefit existing members?
There are two effects!
1. New Booking is Expensive
Firstly, the increase in total booking price and installment amount increases the demand of “old” files in resale. It is cheaper to buy the plot in resale and transfer to your name than booking directly with the company.
So, short-term investors can easily take an exit with a good profit.
2. Old Installment Plan is Easier to Manage
Secondly, the increase in installment amount is more pronounced due to shorter installment plan of 3 years as compared to 3.5 years. Higher installment amount is more burdensome to manage and, hence, decreases the purchasing power of end consumers.
The plots or files with older installment plan are more feasible and easier to manage for end consumers due to smaller installments.
This will result in a higher demand and higher profit on older files.
Market Price of Old Files!
We also saw in the case of Capital Smart City, the pre-launch files of both executive and overseas block enjoyed highest profits when compared to new rates due to the above mechanism.
Currently, the pre-launch files are being traded at the original rate without profit. As the supply in the market will run out, the profits will begin to rise.
At this point, it is recommended for the investors who have booked residential plots in Lahore Smart City at the first price to wait for a few weeks before taking exit.
For those who have not yet purchased any file and wish to take benefit, it is recommended to get in touch with your real estate consultant and avail the short window of opportunity. See the next section for details!
Booking in Lahore Smart City
The society has opened very limited booking during the soft launch. The investor rates, as shown in the payment plan, are comparable to those of Capital Smart City in the pre-launch phase.
Residential plots of 5 marla, 10 marla and 1 kanal can be booked at 10% down-payment. Another 10% is to be paid within the first 60 days after booking as confirmation.
Booking at the first price is closed. The new price and revised payment plan are effective from 3 September 2020.
So, is it too late to avail the benefits of the pre-launch rates? If you have still not purchased or booked your plot in Lahore Smart City, now is the time to act and benefit from the short window of opportunity.
With the increase in prices, the demand for existing files issued at older rates will increase resulting in handsome profits. Right now is the transition period.
It is still possible to get your hands at the first price through the authorized agents as they might have some inventory left. The opportunity is quite short-lived due to high demand!
Sign up below to talk to our representative and get further details!