Investing in Real Estate
In line with general practices, the real estate market has become one of the most lucrative investment fields in Pakistan. The amount of finances needed for investing in the real estate sector may vary from case to case. The two main factors affecting the price of a property in the local market are: location and size. Along with these factors, market trends also play a crucial role, causing property prices to vary on a large scale.
For instance, you can buy a well-constructed, small-sized apartment in Karachi for as low as around PKR 30-50 lakh. At the same time, owning a lavish bungalow in the same city may cost you as high as PKR 15-20 crore, on average. This much variation in real estate prices is what makes investing in Pakistan’s property market suitable for almost all-scale investors.
Some of the most prominent reasons that make the property sector one of the most rewarding investment fields in Pakistan have been listed as under:
- Immediate Results and Returns
- Steady Income
- High Tangible Asset Value
- More Control Over Your Investment
Let’s briefly discuss some of the aforementioned pointers, one by one, to help you develop a better understanding in this regard:
Immediate Results and Returns: Suppose you have rented out your property, your tenant may start paying the rent from the very first month. In some cases, renters also pay advance rent for up to six months, which is mandatory as per their tenancy agreement. There may hardly be any other investment field in Pakistan, which can guarantee you such quick returns.
Steady Income: The purpose of a tenancy agreement is to gain the consent of a tenant to occupy your rental property for at least six months or a year by paying rent. The frequency of rental payment can either be on a monthly, bi-annually, or annually basis. This results in an inflow of a steady rental income on your investment for a certain period of time, one of the major benefits of real estate investment in Pakistan.
Highly Tangible Asset Value: No matter what type of property you own, it may never completely lose its value in the market, if properly taken care of. In fact, according to general market practices, it’s worth may increase with time.
More Control Over Your Investment: The least thing you should be worried about investing in the real estate market of Pakistan is that your investment can’t disappear overnight. This means you have more control over your investment, with minimum risk of loss. This is why real estate is considered among the best small investment opportunities in Pakistan for beginners and small scale investors.
There are various types of real estate investment – The most popular ones among property investors in Pakistan are as follows:
- Buying property files
- Buying plots for resale at a higher value (investment properties)
- Buying a property to rent out
- Buying open land in anticipation of development
The increasing use of the internet, smart devices, laptops and other handy gadgets have positively influenced the field of real estate in Pakistan in a lot of ways. For instance, searching for properties or locating investment options in the real estate sector are far easier than ever, thanks, in part, to reliable online property portals like Zameen.com.
