NOTE: Frequently asked questions list common questions and answers on a particular topic. Therefore, you should ignore any question or answer that does not fit the context. Moreover, answering every possible question for all contexts remains difficult.

Frequently Asked Questions About Property Investment

Do I Invest in Property or Not?

• Property investment always gives fruitful results if you hold long enough.
• People have invested in real estate for centuries.
• In general, people call property a dead investment because it requires patience.
• Minimum holding for residential or commercial property should be 5 years.
• Ten years usually ensures handsome returns.

Tip: Dealers, agents, builders, and even authorities may highlight short-term investments mainly to serve their own benefit.

What is a File?

• A file means property that has not gone through balloting.
• Even if the authority has balloted it, the property may not exist on ground.
• Furthermore, even if it exists on ground, the builder, developer, or authority may not have granted possession.
• Without possession, construction cannot start.
• Consequently, until possession arrives, investors must treat such property as a file.

Tips:

• File prices can rise or fall sharply with market conditions.
• In most cases, investors pay land cost over three years.
• Furthermore, they pay development charges over another three years.
• This schedule creates a structured payment plan.
• Therefore, before you invest in a file, stay clear about your expected holding time.

What is a Plot?

• A property becomes a plot only when the builder, developer, or authority grants possession.
• With possession, construction can start immediately.

Tips:

• After the ballot, dealers and agents often sell or buy a file with a plot number and call it a “PLOT.”
• However, authorities may change the plan due to technical reasons, unfair practices, or to oblige officials.
• Therefore, plot numbers may change.
• Buyers should only treat it as a plot once possession arrives.
• Any property before possession should remain a “FILE.”
• Physical possession plots stay more stable in all market conditions.
• Files and plot files fluctuate sharply with market changes.
• People call them plot files when society allots numbers after a ballot but does not yet give possession.

What is a Society?

A society provides organized urban planning with facilities for living and business.

Basic Facilities

• Electricity
• Water
• Gas
• Sewerage
• Road Network
• Commercial Area

Advanced Facilities

• Parks
• Play Areas
• Hospitals
• Schools
• Extras such as Golf Course, Club, Gated Security, etc.

Types of Societies in Lahore

• Authority-Run: LDA (Faisal Town, Johar Town, Avenue 1) or DHA
• Cooperative Bodies: Wapda Town, NFC, Model Town, UET
• Private Developers: Bahria Town, Urban Developers, Eden Builders

Tips:

• LDA acts as Lahore’s master planner since the 1975 LDA Act.
• DHA runs parallel in cantonment with A-class projects.
• Cooperative bodies provide affordable quality living.
• Private developers deliver modern, state-of-the-art projects.

How to Verify a Society?

Before you buy, confirm:

• Does the society register with SECP or Cooperative Department?
• Does the society transfer land into its own name in revenue record?
• Does the society hold a valid NOC from LDA, CDA, GDA, MDA, or FDA?
• Does the society arrange on-site utilities such as water, gas, electricity, and sewerage?

Tips:

• Never invest in pre-launch bookings.
• Always wait for official booking launches advertised in newspapers.
• The ad must show location, schedule, installment plan, and possession year.
• Always check newspaper warnings issued by authorities against unapproved projects.
• Review lists of approved/unapproved schemes and confirm with the authority office.
• Remember: marketing firms or agents often highlight only the projects they handle for profit.

What is Balloting?

• In real estate, balloting means the authority assigns plot numbers to allottees.
• Ballot means allocation decided by drawing lots.
• Two types exist in Pakistan’s property market:

Booking Ballot

• When a developer offers a project on installments, people apply.
• Then the authority holds a ballot to decide successful and unsuccessful applicants.

Plot Ballot

• Authority allots numbers against files and issues maps.

Tip:

• Nowadays, many use the word ballot to mislead.
• Always ask clearly:
  • Is booking confirmed or through ballot?
  • When will they hold the plot ballot?

Which Location is Best?

• People often call Facing Park, Main Boulevard, or Corner plots best.
• However, the best location is always what fits your budget.

What is Short Term & Long Term Investment?

• People usually link quick gains with short term and longer gains with long term.
• However, the true measure depends on delivery, not profit.

Rules

• Delivery within 1–2 years = Short Term
• Delivery after 2+ years = Mid or Long Term (depending on duration)

Factors

• Prices rise for many reasons, yet delivery stays the main measure.
• Occupancy pace also matters.
• Quick delivery with slow occupancy delays growth.
• Fast occupancy boosts consistent growth.
• Therefore, investors must check both delivery and occupancy.

Tip: Always ask agents or authorities for official delivery timelines.

What is Difference Between Allocation & Affidavit Files?

Affidavit Files

• Created when a landholder surrenders land to DHA.
• DHA issues two files of one Kanal for each acre.
• DHA writes seller’s name but leaves purchaser’s name open.
• Landholder fills buyer’s name and submits with fee voucher.
• DHA transfers file and issues intimation letter.
• Buyer then pays membership fee and receives allocation letter.
• Transfer fee ranges from 6,500–20,000.
• Buyers pay no CVT, Stamp Duty, or Advance Tax.
• Transfers complete in 3–4 days without buyer/seller present.

Allocation Files

• Start after affidavit conversion or direct allotment.
• Buyer holds allocation letter.
• Authority applies NDC and charges Stamp Duty, CVT, Advance Taxes, and DHA fee.
• Both seller and buyer must appear for transfer (except overseas/on-behalf cases).
• Buyer must personally collect the letter.
• Transfers take 7–10 days.

Tip: Affidavit files cost more than allocation files because of lower transfer charges. Both stay equally secure since DHA issues them.

When Will Ballot, Development, and Possession Happen?

• Investors often ask this from agents or dealers.
• Agents share limited knowledge.
• They usually rely on CROs, who often lack complete awareness.
• As a result, investors feel dissatisfied due to incomplete or wrong details.

Tips:

• Contact only the authority for accurate answers.
• Only developers or authorities know actual ballot, development, and possession timelines.
• Therefore, rely on official updates, not agent assumptions.

How Much Holding Time Must Investors Plan?

General Timelines:

• Minimum: 1 year
• Reasonable: 3 years
• Sufficient: 5 years
• Enough: 10 years
• More than enough: 15 years

Growth Patterns:

• Mature projects grow slowly but stay stable.
• Underdeveloped projects grow fast but carry higher risk.

Tips:

• Always define holding time before investing.
• Holders win, so holding capacity ensures strong positions.
• Consult your agent, but never invest if you cannot hold for at least a year.
• If you have time to track daily trends, you may consider less than 1 year.
• Otherwise, avoid short-term investments.
• Always plan to hold until possession.
• If you cannot pay installments, avoid booking.

Which Investment is Better: Residential or Commercial?

• Commercial investments usually give higher returns and rental income.
• Residential investments serve personal living needs.

Tips: Decide by checking:

• Do you need dual-use (residential + commercial)?
• How large is the local population for commercial demand?
• What amenities exist for residential comfort?

Which is Better: Cash Payment or Installments?

• Only individuals can answer this based on their goals.

Factors:

• Do you invest purely for return?
• Do you need it for personal residence or business?
• When do you plan to build?
• Can you manage installments easily?
• Can you wait until possession?

Tip: Do not book if you cannot hold until possession. Premature selling risks losses, while dealers and builders profit.

Do I Contact More Than One Agent?

• Yes, never rely on a single source.
• Consult at least 5 agents before buying or selling.

Tip: Use property portals to find agents. Always prefer agents with offices in the same society.

What are Commission Charges?

• Traditionally, agents charged 2% each from buyer and seller.
• Due to competition, many now agree to 1% or negotiate.
• In rentals, agents usually charge half of one month’s rent, agreed between tenant and landlord.

What is the Price for a Plot in Lahore?

• Lahore’s vast size makes price ranges wide.
• For example, a 5 Marla residential plot may cost 2 lacs in some areas and 70–80 lacs in prime areas.
• Dealers often highlight only where they work and profit most.

Tip: Always decide your area first, then survey the market.

Where to Invest in Lahore?

• Locals and overseas Pakistanis ask this most often.
• Every part of Lahore offers opportunities depending on individual needs.
• People already live everywhere.
• Dealers promote only societies they handle for profit.

Tip: Only buyers can choose the best area. Consider:

• Budget
• Location priorities
• Family accessibility

Buyer’s Checklist for Choosing Location

• Consider children’s education.
• Evaluate workplace/business access.
• Check family proximity.
• Define personal preferences.

Questions & Answers (Darul Uloom Karachi)

• Can I sell my flat after booking with down payment, even though I did not take possession and the builder did not start construction?
• Can I sell property after paying Biana, even though the seller did not transfer it and I did not take possession?
• Can I sell a plot in an underdeveloped society after booking and paying, even though the society did not allot a number?

Rewrite it all with same structure but use maximum transition words and avoid passive words

Please Download following Fatwa for the answers to above asked questions

Property Fatwa about Sale Purchase of Installment Plots Homes Flats

Mufti Tariq Masood explaninig the Selling & Buying of booking forms:

Also read:

File Estate vs Plot Estate vs Real Estate: Understanding the Difference | eProperty®