Guide to Real Estate Investment in Pakistan

The Real Estate sector in Pakistan is growing due to the large number of investments in Real Estate. The types of investments are quite different and are important to be understood by the investors who wish to invest in Real Estate sector to earn in handsome returns and profits.

Guide to Real Estate Investment in Pakistan

Investment in Real estate are of usually two types, physical real estate investment such as residential properties, commercial properties and other modes of properties that do not require physical properties such as REITs and other crowd fund investments.

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As there are many types of real estate investments, it can make investors confuse about where to invest. In this article, we will discuss the main types of real estate investments that are available in Pakistan. Some of the common types of real estate that offer the maximum profits and ROIS are listed below.

  • REITs
  • Residential Real Estate
  • Commercial Real Estate
  • Raw land

REITs:

Real Estate Investment Trusts or commonly known as REITs are the publicly traded companies listed on the stock exchange that deal commercially in real estate especially in commercial real estate such as shopping malls, offices, hotel chains etc. The companies that are trying to list themselves as REITs collect money from different people who are eager to invest and buy and develop real estate property after pooling the total amount.

Investors can easily invest and buy shares of these companies on the stock exchange like the other companies. The main advantage of the REITs is that the investors do not have to face many risks that are linked with owning the real estate properties directly.

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REITs are the top priority for investment by Investors as they are required to return at least 90% of their taxable to the shareholders annually. The attractive dividends are a big incentive for the investment in REITs. Investors can easily diversify their portfolios in the real estate sector along with the handsome dividends each year.

REITS are more liquid than other kinds of real estate. The profits can be earned in a short term period and investors do not have to wait for at least 5 years to sell their property with appreciated prices. Investors can have cash easily in case of emergency in no time which is not the case with other real estate investments.

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REITs work the same way as other stock exchange listed companies. Due to this they have to issue their financial statements every year for their shareholders. Everything is transparent and investor can research completely before investing in the REIT companies.

Residential Real Estate:

Residential Real Estate includes the properties that are used for residence such as homes, apartments, villas, vacation homes etc. Investment in real estate is of different types such as investment for residence, investment to gain rental income or by investing small amount in the property and then selling it when the value gets appreciated. This can be small term or long term investment according to the market of real estate.

Investors get huge profits when they sell small amount invested property for large amount. The investors who do not want any kind of risk are more interested in investing in the properties to gain rental income. Rental income can be easily earned by investing in homes, villas, apartments. If these properties are used for vacations, rent for the properties are even higher. People use many techniques to make profit that include renting one room or a portion of the home according to the needs of their customers. Many real estate investors are earning through AirBnB by offering their residential properties for rent.

Commercial Real Estate:

Commercial Real Estate are the properties that are rented out or by leased by a business entity for opening a new business or expanding their previous business. Commercial real estate includes commercial shops, offices, fuel stations, restaurants, hotels, shopping malls and plazas, industries, factories, clinics, saloons etc. The business owner will have to pay the rent to the owner of the commercial property but if he himself is the owner then rent will be exempted.

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Retail Real estate is also a part of commercial shops that are used to sell products or services to the customers such as a clothing store or a doctor’s clinic. Commercial properties have long term leases of minimum duration of 1 year unlike the residential real estate properties. The commercial investment is also expensive than the Residential real estate investment. But the businesses are supposed to make profit and it can be compensated.

Raw Land:

The raw land is almost same as residential or commercial real estate projects but the difference arises due to the level of development of the land. The undeveloped land or raw land can’t be used for both residential and commercial real estate projects as the basic amenities such as connections for electricity or gas etc. are not present. Usually this kind of land is invested in for farming and agriculture.

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But if the land is situated close to the city then the owners and investors convert the simple raw land into residential colonies. Many residential colonies are emerging on raw land near the cities or just outside the center of the city since the past year and a half. But for developing this kind of properties, one need to be knowledgeable about the rules and regulations by the developing authorizes of the city.

Which Real Estate Investment is Best for you?

Investment in real estate property should be done after a great research in that area. The research should include the budget of the investor. With a small budget, investing in residential real estate property can be beneficial. The type of use after the investment is done can also determine the type of real estate to be invested in. For example, for opening or expanding a business, the commercial real estate is the best for the investment.

For investment in any type of real estate property all over Pakistan, you can contact Pakistan Property Services. We provide you better consultations for your real estate matters regarding Bahria Town projects being the authorized dealers. For further information, you can also visit our YouTube channel where we update regularly to get to know about the new trends in real estate market of Pakistan.

Projects We Deal in:

Many residential and commercial societies in Pakistan are evaluated carefully to help our clients make the better decision. Pakistan Property Services helps the clients invest in projects with good prospects that depend upon the parent company, developers, location, payment plan, amenities they can have in the desired project.

Lahore:

Lahore is the cultural and economic hub as well as the provincial capital of Punjab. The city is well known for its huge economic opportunities in different sectors. People come from different areas to grab these opportunities and have a residence here. Below the list of some of the top Projects in Lahore:

Karachi:

Bahria Town Karachi is a benchmark within the landscape of Karachi with its world-class excellent-planned society. This society is sketched with an area concept to supply outstanding lifestyle facilities to its residents and can introduce new benchmarks of community development in Karachi. Below the list of some of the top Projects in Karachi:

Islamabad:

Islamabad is nestled against the backdrop of the Margalla Hills. It is a modern, planned city with wide tree lined streets, large houses, elegant public buildings and well-organized bazaars. It is however; always under construction to improve transportation or develop new housing areas for its growing population. The walkways are shaded, safe, and separated from the traffic by rows of flame trees, jacaranda and hibiscus. Roses, jasmine and bougainvillea fill the parks, and scenic viewpoints show the city to its advantage. Below the list of some of the top Projects in Islamabad:

Rawalpindi:

Rawalpindi is an important administrative, commercial, and industrial centre. Its industries include locomotive works, gasworks, an oil refinery, sawmills, an iron foundry, a brewery, and cotton, hosiery, and textile mills; it also produces shoes, leather goods, pottery, newsprint, and tents. Below the list of some of the top Projects in Rawalpindi:

Gujranwala:

Gujranwala is a city and capital of Gujranwala Division located in Punjab, Pakistan. It is also known as “City of Wrestlers” and is quite famous for its food. The city is Pakistan’s 5th most-populous metropolitan area, as well as 5th most populous city proper. Below the list of some of the top Projects in Gujranwala:

Multan:

Multan is city of Saints, it is best place to live if you belong to either middle class family, rich family or a poor family. The city is now develop city of Pakistan you can get every life facility here easily at low cast. Multan’s foods are very delicious especially mangoes of Multan are world famous. Below the list of some of the top Projects in Multan:

Bahawalpur:

Bahawalpur lies in the heart of South Punjab and is filled with stories that surround the legacies of Kings, Nawabs and their extravagant lifestyles. Below the list of some of the top Projects in Bahawalpur:

Peshawar:

Peshawar is the capital of the Khyber Pakhtunkhwa province of Pakistan. It is the biggest city of Khyber Pakhtunkhwa and is a relatively prosperous city. It is also a cultural and economic hub of Khyber Pakhtunkhwa. The city is famous for its food and tourism as it is one of the oldest cities of Pakistan with a recorded history that dates back to 539 BC. Below the list of some of the top Projects in Peshawar:

Gwadar:

Gwadar, town and seaport, southwestern Balochistan province, southwestern Pakistan. Located on the sandy Nuh headland that juts southward into the Arabian Sea, the town is an important fishing (sardines and sharks) and trade centre. Below the list of some of the top Projects in Gwadar:

Suggestions:

We can see that the Pakistan Real Estate Forecast 2021 suggests investing more in this market as it promises a huge profit in the coming future. The investors should purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough.

Related Cool Links:

Maps of Societies and Projects in Pakistan:

Maps are the only source to view online high resolution 24 hours updated maps of Housing Societies, Schemes, Towns, Villas and Homes in all over Pakistan. Below the list of maps of some of the top Projects in Pakistan:

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