Real Estate Files vs. Plots: Investment Guide & ROI Analysis(2026)

Last Updated: December 2025|Category: Real Estate Basics

In Pakistan, the fastest way to double your money or lose it all is the File Market.

While Plots offer security, Files offer speed. But for new investors, distinguishing between an Affidavit File and a Balloted Plot is where the confusion begins. For seasoned dealers, managing the inventory mix of Open Files and Balloted Plot without errors is a daily operational challenge.

This comprehensive guide breaks down the technical, legal, and financial differences between a File and a Plot to help you make informed decisions.

1. Difference Between Real Estate File and Balloted Plot

To understand the difference, we must first look at the lifecycle of a housing society.

1.1 What is a Real Estate File?

A File is essentially a promise of a future plot. It is a document issued by a housing society (like DHA, Bahria Town, or City Housing) acknowledging that you have paid for a certain land size (e.g., 10 Marla), but that land has not yet been allocated to a specific location on the map.

  • Status: Virtual / Future Asset
  • Location: Unknown (You don't know your Street or Plot number)
  • Document: An Allocation Letter or Intimation Letter
  • Risk: Higher (Dependent on the society actually developing the land)
1.2 What is a Plot?

A Plot is a specific piece of land with a physical existence. It has gone through the Balloting process and has been assigned a unique identity (e.g., Plot #45, Street #12, Sector A).

  • Status: Physical / Tangible Asset
  • Location: Confirmed (You can visit the site and stand on your land)
  • Document: Allotment Letter / Possession Letter
  • Risk: Lower (The land exists and is demarcated)

2. File to Plot Lifecycle: Booking, Balloting, and Possession

Understanding the journey of a File helps explain why they are traded so frequently.

2.1 The Land Pocket Phase

A developer acquires raw land (acres). At this stage, there are no plots, only land.

2.2 The File Issuance

The developer sells Files to investors to raise capital for development. This is often called the Pre-Launch phase. Investors buy files at a lower rate in hopes of a price jump.

2.3 The Balloting Event

Once development reaches a certain stage, the society holds a Ballot. This is a lottery system where file owners are randomly assigned specific plot numbers.

2.4 The Plot Phase

After Balloting, your File officially converts into a Plot. Its value usually jumps significantly because the location is now confirmed.

2.5 Possession

The final stage where the society grants you permission to build your house.

2.6 Development Charges

The file price usually covers the land cost only. You will likely pay Development Charges (for roads, electricity, sewerage) separately after balloting.

Pro Tip: Managing this transition is difficult. Most agencies use Excel, but professional software like Aiksol360 automatically converts a File entry into a Plot entry in your inventory system post-balloting, preserving the history of the asset.

3. Comparison Table: At a Glance

FeatureProperty FileBalloted Plot
Price PointLower (Entry-level)Higher (Market competitive)
LocationUnknownFixed (Street/Sector defined)
ROI SpeedFast (Trading/Flipping)Slow (Long-term appreciation)
Risk LevelHigh (Overselling fraud)Low (Physical possession)
PossessionNot availableAvailable (or near future)
Ideal ForInvestors / TradersEnd-users / Home Builders
Transfer CostLowHigh (Registry/Transfer fees)

4. Investment Analysis: Which Should You Buy?

Your decision depends entirely on your goal: Trading or Building.

4.1 Files (The Investor's Route)

Files are the currency of speculators. Because they are cheaper than plots, they offer a lower barrier to entry.

  • Capital Gain: Investors buy files during the Pre-Launch wait for the Ballot, and sell immediately after the price spikes. This is known as Flipping.
  • Liquidity: Files are often easier to sell quickly than plots because the transfer process is simpler and cheaper.
  • The Own Factor: Popular files often trade on Own (Premium). If the booking price is 50 Lakh, but demand is high, the file might trade at '50 Lakh + 5 Lakh Own.'
4.2 Plots (The End-User's Route)

If you plan to build a house, you must buy a plot. Buying a file is risky for a homebuilder because you might get a bad location (e.g., facing a graveyard or near a nullah) during the ballot.

  • Security: You know exactly what you are buying. You can check if the plot is level, if the road is paved, and if utilities are available.
  • Bank Financing: Banks generally do not offer home loans on Files. They only lend money against Plots with a clear title.

5. Types of Files: Affidavit vs. Allocation

In premium societies like DHA, you will hear two specific terms regarding files:

5.1 Affidavit File (The Open File)

This is an Open Letter issued to a landowner who gave their land to DHA. It does not have a specific buyer's name on it yet.

Benefit: It is like a bearer check. It can be transferred very quickly without heavy taxes or transfer fees.

Dealer Note: Dealers love Affidavit File for fast trading. However, they carry a high risk of theft if lost. Aiksol360's Inventory Module allows you to track Affidavit File by Serial Number to prevent theft in your office.

5.2 Allocation File

This is a file that has been formally transferred to a specific person's name.

Benefit: It is secure. It cannot be stolen or sold without the owner's biometric verification.

Drawback: Transferring it requires a formal process and fees.

6. Fraud Alert: Overselling & NOC Verification

The biggest risk in the File Market is Overselling.

This happens when a private developer owns 100 acres of land (which can fit 500 plots) but sells 2,000 files.

  • Result: 1,500 file holders will never get a plot. They will be stuck in litigation for years.
  • LocalContext: This is currently a major issue in unapproved societies in Punjab and Islamabad Zone 4. If the deal sounds too good to be true, ask for the NOC Number and verify it on the RDA/LDA website portal yourself. Never rely on the dealer's word alone.

7. Behind the Scenes: How Dealers Manage Your Asset

If you run a Real Estate Agency, handling Files vs. Plots requires different workflows.

7.1 Inventory Management

Files: You need to track Booking Dates and 'Balloting Schedules'. You often trade these in bulk (e.g., '5 Files of City Housing').

Plots: You need to track specific attributes like Corner, Park Facing, and Main Boulevard, as these affect the price.

7.2 Commission Structure

Files: Often have a flat commission or a Dealer Quota margin.

Plots: Usually earn a percentage (1% or 2%) of the total deal value.

Aiksol360 Solution: Our CRM handles both. You can set up a File Inventory for your trading desk and a Plot Inventory for your sales team, with different commission templates for each.

Conclusion

For Investors: Always ask your dealer if they are tracking your file's balloting status manually or digitally. The safety of your investment depends on their organization.

For Dealers: Managing a mix of 50 Open Files and 20 Plots on Excel is a recipe for disaster. Aiksol360 automates the File-to-Plot conversion instantly, securing your client's history and your commission.

See how the Aiksol360 Inventory Module works

FAQs

Can I build a house on a file?

No. You must wait for the file to be balloted and converted into a plot with possession before you can start construction.

Do files have plot numbers?

No. A file only has a Registration Number or File Number. The Plot Number is assigned only after balloting.

Are files subject to Zakat?

Generally, yes. Since files are liquid assets purchased for capital gain, they are treated as Merchandise of Trade (Maal-e-Tijarat) in Islamic finance. Because the intention is profit/trading, most scholars agree Zakat is due on the current market value.

Which appreciates faster?

Historically, Files appreciate faster in percentage terms during the early development stages (0-3 years). Plots offer slower but more stable appreciation after the community is established (5+ years).

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