What is Real Estate Investment?

Real estate investment refers to purchasing, owning, managing, renting, or selling real estate to generate a profit or return on investment. Real estate investments can include a variety of properties such as residential homes, commercial buildings, apartment complexes, industrial properties, raw land, and much more.

What is Real Estate Investment?

Investors can generate profits from real estate investments in several ways, including rental income, capital appreciation, or flipping properties for a quick profit. Successful real estate investment requires careful analysis of the market, property location, and condition and a solid understanding of financial and legal considerations involved in the transaction.

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Real estate investment can be a long-term and profitable way to grow wealth and diversify one’s portfolio. However, it also carries risks and requires due diligence and proper management.

Real Estate Investment in Pakistan:

Real estate investment in Pakistan is a popular way for investors to generate investment returns. The country’s real estate market has shown significant growth over the years, and many investors see it as a lucrative opportunity for investment. Both local Pakistani and overseas Pakistani citizens invest in real estate to enjoy huge returns.

Investors in Pakistan can invest in various types of real estate, including residential and commercial properties. Investment in real estate is of different types, such as investment for residence, investment to gain rental income, or investing a small amount in the property and then selling it when the value gets appreciated. According to the real estate market, it can be a small or long-term investment.

Commercial properties, such as offices, retail shops, and malls, are also in high demand due to the growing economy and increasing business activity.

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Investors in Pakistan can earn returns on their real estate investments through rental income, capital appreciation, and property sales.

Types of Real Estate Investment:

Residential Real Estate:

Residential Real estate includes residential properties, such as homes, apartments, villas, and vacation homes. Residential properties, such as apartments and houses, are popular among investors because of the increasing demand for housing in urban areas.

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Investors get huge profits when they sell a small amount of investment property for a significant amount. Investors who do not want risk are more interested in investing in properties to gain rental income. Investing in homes, villas, and apartments can easily earn rental income. If these properties are used for vacation rentals, the rent for the properties is even higher. People use many techniques to make a profit, including renting one room or a portion of the home according to the needs of their customers. Many real estate investors earn through Air BnB by renting their residential properties.

Commercial Real Estate:

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

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Commercial properties have long-term leases of a minimum duration of 1 year, unlike residential real estate properties. Commercial investment is also more expensive than residential real estate investment. But the businesses are supposed to make a profit, which can be compensated.

Land:

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

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But if the land is close to the city, the owners and investors convert the simple land into residential societies. For the past three years, many residential societies have been emerging on land near the cities or just outside the city’s centre. But for developing this kind of property, one needs to be knowledgeable about the rules and regulations of the developing authorities of the city.

Which real estate investment is best for you?

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

Factors to consider while investing in Real estate:

People who have been supporting long know how to invest and what factors to consider. But then, new investors often need clarification about the extensive investment options. The following are some main factors to consider while investing in real estate for the first time.

  • Location
  • Approval by development authorities
  • Layout Plan
  • Available Amenities
  • Payment Plans
  • Taxes

These points make it much easier for the investor to decide on a project.

Location:

The location of the property is essential for investment. It will be one of the new investors’ most significant and challenging decisions. A good place for your property means it is easily accessible from different surrounding areas and should have a low crime rate. Good road infrastructure makes people quickly come and go from that area.

A good location decides the future of your property. For example, commercial investment should be made only in great markets or the city centre. This investment will be costly but will give instant ROI to the investors. Investment in residential properties can be made by investors in both residential and commercial sectors. The rental income from your property will fall into the retail industry here. In the same way as commercial sector investment, investment in residential properties should also be made in a good location that is accessible and peaceful. Residential properties should not be on the main roads as they will constantly be noisy, and the environment will be polluted too.

Investors should consider the location of the property they invest in.

Approval by development authorities:

Investors should consider only those properties approved by the development authorities or which will soon be approved. Development authority, such as LDA, is a government body that looks for the development happening in a neighbourhood, i.e., for Lahore. Properties approved by the development authorities of the city provide proof that this property is entirely legal and investors can easily invest here without any doubts.

For a society or property to be approved by its development authority, that community needs to support its map, layout plan, and basic amenities for living (electricity, gas, water, sewerage) are added in the program for approvals.

Layout Plan:

Before investing in any property, the layout and area of the society should be looked at. The layout plan and area of the community indicate many things before investment. The larger the area, the more amenities and facilities will be provided to the society, such as parks, green belts, commercials, schools, and hospitals can only be part of large societies. The society chosen for investment should be more than at least 10 Kanal.

Available Amenities:

Just like the layout and area of the society, investors should look for the amenities a society has promised for future residents and commercials. The basic amenities for a living (electricity, gas, water, sewerage) and facilities like parks, green belts, commercials, schools, hospitals, water filters, wide roads, gated community, and, the most important, security system should be the bare minimum for the investor in this era.

Payment Plans:

Investors should ensure several things while looking at the payment plans of the property. Investors should ensure that the property they are investing in should have disclosed all the payment plans and that no hidden charges are present in the payment plan.

Down payments of at least 15 % to 25 % should be agreed upon. The lower rates result in large instalments, which makes the investment difficult. So large down payments should be preferred. The down payment amount should be available to you at the moment of acquisition.

The instalment plans should be preferred in the case of low budget, and an instalment plan of at least one year should be selected. If investors have a low budget initially, investing in a luxurious property is unnecessary. Low-cost properties can also provide great returns.

Taxes:

Before investing, investors should know about the taxes that will apply to their property in the future, such as property tax and income tax. The investor should know for how long he will keep the property in his name and how much taxes will be applicable even though the property is residential or commercial.

However, real estate investment in Pakistan also carries risks, such as property market fluctuations, legal and regulatory issues, and the risk of fraud. Therefore, investors must conduct thorough research and due diligence before investing in real estate in Pakistan. Working with experienced real estates agents like Pakistan Property Services, lawyers, and consultants can also help investors navigate the complexities of the Pakistani real estate market and make informed investment decisions.

Contact Pakistan Property Services to know more about real estate investment. We provide better consultations for your real estate matters as the authorized dealers of Bahria Town and Etihad Town projects. For further information, you can call +92 321 111 2508 or visit our YouTube channel Pakistan Property Services, where we regularly update you to learn about the new trends in the 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:

Faisalabad:

Faisalabad, formerly known as Lyallpur named after the founder of the city is the third-most-populous city in Pakistan after Karachi and Lahore respectively, and the second-largest in the eastern province of Punjab. Below the list of some of the top Projects in Faisalabad:

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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