Plot or Plot File: Which is best for Investment

Plot File

Mohammad Hassan Bakhshi, former president of the Association of Builders and Developers (Abad), said that the market cap of real estate in Pakistan is over $1 trillion and it is rising at a rapid rate. Yet, the real estate industry accounts for about 2 percent of the GDP of the country. 

The net worth and contribution to GDP demonstrate that real estate is Pakistan’s future and has the ability to boost Pakistan’s economy. Real estate is not only the secure opportunity for investment, but it is also a perfect way to make money in the long run. 

People typically invest in the following real estate categories in Pakistan: 

  • Houses
  • Flats
  • Commercial spaces
  • Plots

Plot or Plot File 

In the real estate industry, there are two words that you sometimes encounter: plot and plot files. Unfortunately, the discrepancies between plot and plot files are not understood by individuals. They assume it’s the same thing, but both words are miles apart from each other. 

People are unable to distinguish among plots and plot files. 

People believe that plot and plot file are two words with the same meaning which can be used interchangeably. Apparently, this is not right as plot and plot files are two different things with their own characteristics. 

Read more: What are the things to keep in mind while investing in real estate?

Where you should Invest? – Plot or Plot File 

Before buying plot or plot files, you need to have a clear understanding for these two terms. Here is the difference between plot and plot files. 


A plot is measured parcel of land. 

Plots can be of any size. People buy plots for mainly two reasons. One is constructing a house and starts living in it and the second is to resale the property when there is profit involved. For people who want to make money on short term basis, investing in plots can be beneficial for them as it requires a very minimum cost for maintenance and plots are easier to sell rather than a house. 

Plot file 

There are people who prefer buying plots while there are some who invests in plot files. 

A plot file is an area that is not balloted. A plot file may or may not be on the ground. The ownership of the plot file normally not provided by authority/developer or builder. 

Typically, people invest in plot files as plot files are cheaper. However, a crucial element that individuals typically neglect, that plot files come with tremendous risk and high chances of fraud. 

Read more: Here is everything you need to know about Token Money and Bayana

Plot files have no physical appearance and are intangible. Their value is limited to the document only. 

Generally, housing systems typically issue plot files to individuals as a sign of commitment. 

For example, there is a housing system that has 500 units to sell. In the form of plot files, however, they issue an additional 500 units. So, to precise, the plot file is a promise that ensures that after some time (typically in the span of 2 to 4 years), people who own certain files are given a plot. 

Plot files could be best for you if you are interested in cheap long-term investments. 

Risk Associated with Plot File? 

Plot images are generally not reliable. If you intend to buy a plot file, consider only the files which are accepted by the development authorities. If your plot file does not contain a stamp from the authorities, you cannot buy it because its validity is doubtful. 

For example, if you are living in Islamabad, only consider the plot files that have a CDA stamp. 

If the stamp is missing on plot file, that means the construction authorities is not authorize for the property and will not be liable for your loss. Always remember that invest in plot files that have been balloted by the development authorities. 

In Pakistan Real Estate, the word balloting is commonly used to assign plot numbers to the allottee for a said project. In general, balloting means “deciding by drawing lots on the allocation of (something) to applicants.” Balloting is a pledge between the developer and a party. In essence, it is okay to invest in certain plot files if the plot file has been balloted. 

This was the main difference between plot and plot file and some key points to ponder while investing in that particular segment.  

Please note: AboutPakistan Property Portal article is only for general information and we do not take responsibility for any investment. We sincerely advice you to go out in the market and try to gather as much information as you can before investing in the real estate industry. 

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