"Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth." - Theodore Roosevelt.
Pakistan's real estate market, which is arguably one of the most lucrative and sustainable industries, plays a huge role in the country's economy. The real estate industry accounts for 2% of Pakistan's entire GDP, according to the Pakistan Bureau of Statistics.
Despite the Covid-19 pandemic, the Pakistan real estate industry remained stable as opposed to other industries which were hit extremely hard. This showcases the strength of real estate in Pakistan and how investments made in such an industry will always prove useful.
Reasons to Invest in Real Estate in Pakistan
One of the most popular and extensively used investment options in Pakistan is real estate. Millions of people invest in real estate each year owing to its benefits and financial rewards. Although there are many strategies to diversify an investment portfolio, investing in real estate continues to be one of the most prominent. Real estate is a wise investment because, unlike other commodities, the value of land never changes, despite fluctuations in property value.
The shift in mindset saw the real estate industry welcome more and more investments from working people, investors, and business tycons. It's an extremely high-investment field, which will not diminish as quickly.
Important Things to Consider While Investing in Real Estate
Buying property in Pakistan can be a daunting task due to lack of reliability. However, thankfully, there are ways through which you can establish whether your investment opportunity is worth your time and money or not. The following are the things to consider while investing in real estate.
1. Choosing the Right Investment Project
There are several opportunities for portfolio diversification in real estate. It implies that you have a lot of investment opportunities. Commercial, residential, and industrial properties are all available options for investment. Look into market elements that influence real estate.
Understanding the various real estate opportunities and how to use them to your benefit financially is essential.
Residential properties, for instance, can be used for accommodations, and rental, on other commercial spaces and, are primarily used for business and commerce.
2. Establish Integrity
Constantly evaluate the reputation and integrity of the real estate company into consideration before investing. Verify if the regional development authorities have approved their range of products. Additionally, make inquiries and understand everything that you can about the company.
Visit their social media pages and read client evaluations if they have an internet presence.
3. Take Client Reviews
Attempt to get in touch with previous clients of that particular business. Ask questions and try to comprehend as much as you can. These folks can probably offer you valuable info as well. Therefore, pay close attention and make an effort to learn as much as you can.
The proportion of the customer base is very important because it reveals the success and reliability of the business. The value of the company increases with the size of the customer base.
4. Is the Process Transparent?
In real estate, transparency is the most crucial factor. It guarantees the company's legitimacy and dependability. Make sure the company's operations and procedures are open and transparent before investing any kind of real estate investment.
There are numerous real estate firms in existence that do not promise transparency. For example, they won't tell you about all the expenses related to the property, such as maintenance charges, and vice versa.
5. Project Location
Your investment's location could make all the difference. Your odds of making money from your investment, for instance, may increase dramatically if you invest in a business in a popular commercial area. Residential properties are in a similar situation. Residential real estate will produce strong rentals in addition to a solid resale value.
6. Market Trends
The State Bank of Pakistan (SBP) indicated that the development and the housing sector have been notably higher than nine percent over the past few years.
Understanding and staying informed of the latest market trends and news is the key. It will not only enable you to make a better and more knowledgeable financial selection, but it will also assist you in developing a fear of taking the wrong risks.
7. Installment Plan & Down Payment
Various real estate ventures have lucrative and alluring sounds. However, they could be expensive and risky. For instance, some businesses have highly strict payment schedules. Look for projects that provide you with flexible and simple payment terms.
Be explicit about the down payments as well. Usually, if you make a larger down payment, you'll have to pay less, more manageable installments with fewer numbers.
All being said, investment in real estate is one of the handsome investments which assure a good appraisal and profit in the longer run. The size of the market is expanding exponentially. According to the Pakistan Economic Survey, the construction and real estate sector contributes 2.53% of Pakistan's GDP and employs 7.61% of the country's labor. And if you are taking the aforementioned factors into account, you would probably end up investing in a good and trustworthy project.