The real estate industry in Pakistan is on the hype, even in this time of high inflation. Actually, this is the best time to invest in the property, as now, the prices a bit low; the properties can be sold once the situations will be settled. So, we would say, invest in commercial properties NOW.
If you’re planning to become a property investor in Pakistan, you’re at the right place; we are here with some practical knowledge and exposure to share the real challenges and hurdles real estate investors face in this country. Also, how to become the best, most successful investor.
The real estate industry’s contribution in Pakistan is… real estate activities (OD) shares 9.6% in services and 5.6% in GDP.
It helps the economy to grow and flourish while controlling the risks of rising inflationary policies.
Here, random planning and guesses do not work, you actually have to study the pros and cons and use your foresightedness more carefully before investing in any project.
Frankly speaking, investing in real estate in Pakistan requires a lot of patience, practice, perseverance, and most importantly, a critical eye and powerful prediction attitude.
Furthermore, you also need to keep a keen eye on changing social, political, and economic factors of the city you’re planning to invest.
Let us deep dive into the real estate of Pakistan.
Become a successful property investor in Pakistan
No matter how challenging investing in the real estate industry of Pakistan, there are so many known realtors and investors like Malik Riaz, Arif Habib, AKD, etc., that are working tirelessly across the country.
They are the true inspirations, and yes, thanks to real estate builders and developers for developing state-of-the-art projects, across the major cities of Pakistan.
To start off, let’s quickly overview the parameters to look for – to become a successful investor in the country.
- Get to know the growing neighborhoods of the city you’re planning to invest in – like if you’re planning to invest in Islamabad, there are many high-yielding residential and commercial hubs, one of them is Blue Area, Islamabad.
- Plan your finances before investing in any project, and the project’s timelines; to make realtors’ decisions easier, we have already communicated the expected completion time of our upcoming commercial project of Blue Area, Islamabad. Citadel 7 will be completed by the third quarter of 2026.
- Get yourself well-versed with the existing and future laws and regulations, including taxes and duties, legal formalities, advisories, and other preliminary legalities.
- Determine your goals before investing – whether you want to earn returns right away or can wait for some years, for better returns; if you’re looking for a long-term commitment, then do learn the future returns of the respective proposition. Our project Citadel 7, will take 4 years to complete and according to our sales team analysis, the annual capital gain is up to 18% and the rental return after 4 years would be around 700 to 800 per sq. ft.
- Location is the key… no matter whether you like to invest in residential or commercial property, ensure the location of the project should be accessible, well-structured, well-connected with the city, and most importantly, has a promising future. You can always use the legal authorities, like CDA, LDA, KDA, etc., to know the master plans of the neighborhood you’re planning to become a part of.
- Before investing in any property, do check the legal status and the authenticity of the proposed project, because unfortunately, in Pakistan, the number of illegal properties is higher, especially in cities like Karachi. In Islamabad, the CDA is working diligently, taking strict actions against illegal constructions.
The scope of property investment in Pakistan
In real estate, good results take time to achieve, especially if investing in future projects. In Pakistan, real estate becomes a gold mine for investors.
As properties here offer high returns and low risk if located in prime localities.
In this developing country with a rapidly-growing economy, there are two lucrative sectors with high incentives – the stock market and real estate.
The future of the real estate business in Pakistan has always been bright, thanks to business tycoons, MNCs, and foreign Pakistanis for being in the business for more than 2 decades.
This is why this sector offers incentives and protection to those willing to invest in Pakistan. We know the economic conditions of the country are bad at present and we are being dictated by the International Monetary Fund (IMF) to avail of further loans.
Well, the best thing about Pakistan is… it has an informal and cash economy, which means people have a lot of money to invest in properties.
Moreover, a large community of Pakistanis is living abroad, sending multimillion dollars in the form of remittances. And, we all know that the first dream of Pakistanis living abroad is to have good property in Pakistan.
The Prospect of Real Estate Investment in Pakistan
Here come the numbers… which motivate every other citizen to invest in real estate and earn higher returns.
The economy of Pakistan is heavily dependent on the real estate sector; the industry contributes more than 7% of the GDP and employs more than 10 million people.
Though there are several problems – lack of transparency, scams, corruption, poor infrastructure, etc. – these reasons always encourage a property investor in Pakistan to excel;
- Annual Capital Gains
- Monthly Rental Returns.
- Tax advantages and breaks.
- Portfolio diversification
- A regular cash flow.
Smart goals tips for real estate investments
Investing in real estate is all about hard work. Especially, as the saying goes, the job you take over completely, you ensure its all risks and benefits are your responsibility.
In the real estate industry, investment leads to better returns, only if patience is practiced.
Hence, here are some SMART goals for investing in real estate in Pakistan. Despite most challenging efforts, investors are expected to be smart enough to focus and leverage the opportunities being thrown.
- Specific:
The realtors should have specific, goal oriented plans for their current and future investments. One of the most important decision to take is whether to invest in commercial or residential project/s. Having the market condition of Pakistan, we recommend to look for commercial ones.
- Measurable:
The realtors should ensure that the project they are investing should have enough revenue-generating potential, so that you can plan your future returns and investments accordingly. Like, we are expecting around 18% of annual capital gain in our upcoming project, Citadel 7, located in Blue Are, Islamabad.
- Achievable:
Avoid investing in properties who claim larger-than-life returns and are known for false claims and doubtful historical records. So, investors should invest in projects with achievable outcomes, preferably the builders who are trustworthy and committed to their work, and have delivered projects already.
- Realistic:
The real estate project you’re planning to invest should have relevancy with the location and the systems it belongs to. So, ensure the project you’re aiming for should be legally bounded by the concerned authorities and are free from any false claims and records.
- Timely:
Imagine you’ve invested in a project which has no completion timeline, how would you know when you will be having the maximum returns. So, ensure when the project you’re investing your fortunes to should commit a definite timeline, so that you know when you will achieve what you’re investing for.
Conclusion
To succeed in real estate, both willingness and patience are required.
However, the process is easy but challenging too; your luck also matters.
We suggest opting for a location with good infrastructure and yes, do your due diligence before investing in any project.
