Best CDA Sector Investment in Islamabad 2021

The CDA enjoys a considerably better reputation in Islamabad than other municipal development authorities. Islamabad is divided into five zones, with zones 1 and 2 consisting of 22 km sectors organized alphabetically, vertically and numerically, horizontally.

While Islamabad’s confines are stretching into zones 2 and 5, and many private developers are establishing housing schemes throughout the city, the general public and investors continue to prefer CDA Sectors for various reasons.

But first, let us look into the history of CDA.

History of CDA 

The Capital Development Authority (CDA) was founded on June 14, 1960.

The CDA Ordinance was founded on June 27, 1960. It established the authority and defined the authority’s powers, duties, functions, and responsibilities.

The Ordinance’s main goal was planning and development of the Capital (Islamabad); the second was completing or authorizing the Capital Development Authority to perform the functions of a Municipal Committee, including providing for cleanliness, health, and education of residents, as well as the supply of goods, food, and mild, and promoting the interests of various segments of the public. All measures are designed to promote public interest and benefit.

As a statutory entity, the Capital Development Authority is expected to treat citizens fairly and honestly and perform all of its operations transparently.

Now let us discuss into the prospective advantages and drawbacks of investing in CDA sectors instead of other private housing plans.

Locations in the Federal Capital

An essential element to consider is that the CDA builds housing plans or sectors in central Islamabad, where most citizens prefer to live. Other private housing societies, on the other hand, are located far from the Federal Capital.

Rate of Return on Investment 

CDA offers a limited number of plots at affordable costs compared to private interests, attracting many potential registrants and driving up prices faster than any other housing scheme.

Trust Factor

The third element is confidence, as many people are hesitant to trust private developers because of the risks involved, but CDA represents the government, which is well-respected. There are not only advantages to investing in CDA areas; there are also some disadvantages to consider, which have affected people for years.

Speed of Development

CDA takes a long time to develop a market. People have been waiting for years in some cases, and there has still been little progress. Landowners have little choice but to wait, although prices have grown dramatically over the years. The leading cause of these delays is the residents’ refusal to hand over their land to CDA for construction.

Quality of Development

The low quality of CDA’s production is the second disadvantage. CDA would likely fall short compared to Sardar Group of CompaniesFuture Development Holdings Limited or FDHL, DHA, Bahria, and MPCHS in terms of development criteria. The best CDA sector investment places worth considering for the medium to long-term investment in 2021 are as follows,

  • C-15 Sector
  • C-16 Sector
  • E-12 Sector
  • G-14 Sector
  • I-11 Sector
  • I-12 Sector

Because this blog primarily concerns CDA sectors administered by CDA or government entities like FGEHF, we shall not discuss the G-15, G-16, F-16, D-17, B-17, and F-17 sectors built by private housing projects.

Sector C-15 and C-16 

Sector C-15 and Sector C-16, both of which are still undergoing land acquisition, were recently launched by CDA. The CDA proposed a land-sharing strategy in specific sectors, under which landowners will get one Kanal of built land for every four Kanal of undeveloped property.

These locations are accessible via Margalla Avenue and are close to Moaza Kharbooza. In these areas, the master plan maps show smaller plots, usually one Kanal residential plot. The site is outstanding and worth consideration for investment or habitation after the planned access routes are finished.

Physical development appears to take a long time given CDA’s present land purchase method, especially given the city authority’s track record.

So the main key points about these sectors are:

  • The location is terrific.
  • The financial criterion is relatively lenient.
  • The profit margin is likely to be significant.
  • The rate of expansion is slow.
  • The development’s quality is still uncertain.
  • Investing opportunity with a long time horizon.

Sector E-12 

About 20 years ago, CDA introduced Sector E-12, located close to the most desirable residential sector E-11. It is located next to the Golra Sharif shrine and is surrounded by illegal buildings and encroachments. Apart from the attractive location, this industry has shown no evidence of expansion in the last two decades.

The price of a plot in this sector can range from 30 lakhs to 2 crores, depending on the size, location, and category. The region around E-11 is quite expensive, although the site is not. There is little doubt that as the sector grows, prices will increase. However, in a few years, CDA will take custody of the entire sector’s land and begin development.

So the main key points about Sector E-12 are:

  • The location is excellent.
  • Budget limitations range from minor to primary.
  • The profit margin is likely to be significant.
  • The growth rate is losing momentum.
  • The development’s quality is still uncertain.
  • Investing opportunity with a lengthy time horizon

 

Sector G-14 

The CDA Sector G-14 was established in 2004 by the FGEHF, a government organization responsible for building housing plans for federal government employees in Islamabad. The sub-sector G-14/4 has been completed, while the following three sub-sectors are still being formed.

Residents are negotiating with the Housing Foundation to have their property evacuated, particularly in G-14/3. The FGEHF has been unable to speed up the land acquisition process in G-14/2 and G-14/1, where most of the local population has settled.

G-14’s location on the main Srinagar Highway is particularly enticing because prices in the nearby G-13 sector are roughly double those in G-14’s non-developed sub-sectors.

Sector G-14 offers residential plots in 4 Marla, 5 Marla, 7 Marla, 10 Marla, 12 Marla, and 1 Kanal. There are three sub-sectors in which we can invest in G-14/4’s developed region.

Thus, the primary key points of Sector G-14 are as follows,

  • It is a prime area.
  • Budget restraints range from minor to primary.
  • The anticipated profit is substantial.
  • There is a slow rate of growth.
  • The development’s quality is unknown.
  • A long-term investment opportunity.

 

Sector I-11 

Sector I-11 is a part of Zone 1 and is located in Main Islamabad. Despite its advantageous location, the municipal government overlooks this region, and it no longer appears to be a part of Islamabad.

Sector I-11 was inaugurated approximately 25 years ago, but the CDA has yet to acquire land in this sector. Although many Afghan migrants have moved in I-11/1 and have become a security danger due to the authorities’ lack of security inspections, evacuating the Kacchi Abaadi from this area appears difficult.

This sector will be valued nearly as much as sector G-11 if CDA makes a significant attempt to restructure and grow it.

Therefore, the primary key points of Sector I-11 are:

  • It is a perfect site.
  • The financial threshold is a relatively lenient one.
  • The expected profit is enormous.
  • The average growth has been delayed.
  • The quality of the product is unsatisfactory.
  • A long-term investment opportunity.

Also read Most Expensive Residential Area in Pakistan.

Sector I-12 

Sector I-12 has been waiting for development for several years, but no work has yet commenced. The CDA has approved PC-1 for development work in I-12.

Due to the relocation, there is a pricing difference between plots owned by them and plots previously sold and transferred to someone else.

5 Marla plots often cost between 25 and 35 lac, while 8 Marla plots cost between 38 and 50 lac.

I-12 is in a fantastic location, and the region surrounding NUST Road — which connects I-11 and NUST University – is quite expensive and in high demand. A layout plan has been created, and a development tender is expected to be released soon. Once development work begins on I-12, prices might more than quadruple.

Thus, the critical points of Sector I-12 are:

  • The location is fantastic.
  • The monetary requirement is flexible.
  • The profit margin is expected to be high.
  • The growth rate is decelerating.
  • The development’s quality is still undisclosed.
  • For the medium term, there is investment potential.

 

Conclusion 

Sigma Properties highly recommends investing in a CDA Sector in Islamabad. The coming years will prove profitable for the property in Islamabad, so you should consider investing your hard-earned money in the Federal Capital without further ado.