Achieving Heights
What investors keep gauging… of course capital gains/rental returns against their investments in real estate. And if they are in Islamabad, one of their go-to neighborhoods would surely be Blue Area Islamabad.
Also called New Blue Area and the heart of the capital city, Blue Area is known to be the commercial hub, with major developments underway.
Citadel 7, a High-rise Project for High-rise Returns, Blue Area.
Not only for investors in Islamabad, the overseas Pakistanis are also keen to invest in the federal capital, especially in areas like Bahria, DHA, Blue Area, etc. These areas have a better record in terms of returns and gains.
To turn your real estate investment into a jackpot, here we are with some insights… of the Blue Area and its potential.
Everything about Capital Gains and Returns of Real Estate
When we talk about capital gains and returns in real estate, the question arises… what type of investment begets the most returns of your hard-earned income and the savings?
But first thing first…
What are returns of Investments in real estate?
“Now, one thing I tell everyone is to learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values, and the least risk.” Armstrong Williams.
ROI is the total gain earned/accumulated/gained that an individual earns against the assets being invested; real estate returns can be in terms of capital or rental gains.
Now, with changing dynamics and the scope of real estate in Islamabad, you don’t need to wait for decades to earn a good return on your property investments.
If you invest now in developed areas like Blue Area, the chances are that your investment can earn a gain of up to 18% annually.
We have already said before… do invest in commercial properties, as this sector has barely witnessed a low rate/negative returns, especially the well-built/business-only localities.
What Exactly is Capital Gain?
Well, as the name refers, it’s the appreciation of the value of an asset/physical property over a period of time.
Suppose you purchased a commercial property worth $300,000, and after a year, its market value reaches the figure of $350,000. So, the appreciated amount is $50,000, which is around 18%.
What is Rental Return?
As it suggests, rental return is the net value of the rent that a landlord earns against a rented property.
In Blue Area Islamabad, if you invest in our project, Citadel 7, the expected rental income will be around 15% – 17% in the next 4 years.
Currently, the rental properties give an average of not more than 11%; again, here so many rules/factors play their part respectively.
But the general rule, that often works here in Islamabad, is the area’s future prospects and the overall standing of the area. The Blue Area is already established, well connected, and has just introduced a couple of masterpieces in its newer extension, known as New Blue Area.
Completed vs Under Constructed Projects
We heard you… being impatient by nature we want to know when the returns will begin.
Let us guide you…
The difference between ready and under-constructed projects is that the former is dependent on rental income of up to 11% only. While the latter help you earn the accumulated ROI (of up to 18 annually) and in the coming years, the rental return would increase by up to 18%.
Here, the rule is simple… you have to be vigilant and use your understanding/experts’ advice to foresee the expected returns; often under-constructed properties earn better gains as the value keeps changing over time.
What Determines the ROI in Commercial Real Estate
You need to keep in mind these determinants of ROI… before making a final call;
- Location of the property – the prime, the premier!
- Maintenance and overall Structure of the Project – High-rise Structures are more Health and Eco-friendly than others.
- Availability of basic and advanced amenities – The more Amenities and Conveniences, the merrier!
- Market value and economic conditions of the Area – Stability is the Key!
- The authenticity of the Project – CDA-approval is a MUST!
So, the above factors will help you earn better returns on your real estate investments.
Citadel 7, a High-rise Project for High-rise Returns
One of the masterpieces, developed by Chakor Ventures, Citadel 7 is an up-and-coming, state-of-the-art high-rise commercial tower, which is located in New Blue Area, Islamabad.
According to our sales expert, this business/corporate tower will be the epitome of luxury and practicality that will offer a capital gain of up to 18% annually and a rental return of up to 700/sq. ft. in the next 4 years
We have corporate offices, spanning an area ranging from 471 to 1849 sq. ft., retail outlets, and a food court.
Are you ready to invest…
Accordingly, if you are planning to invest your hard-earned income into real estate in Islamabad, look none other than the New Blue Area.
Our very owned, Citadel 7 offers the best investment opportunities, for now and years to come; the project will be completed by 2026.
FAQs
You cannot get away with any sorts of taxes in Pakistan. It’s illegal to forge taxes in any part of the world. However, you can minimize capital gain tax rate by being a filer.
First year -15%
1 to 2 years - 5% .
2 years and above - 0%
This is the yearly break-up of the capital gain tax (CGT) in Pakistan.
