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Real Estate Investment in Pakistan

By January 5, 2023January 25th, 2023No Comments

First of all, you should know that there is no exact way to define property investment. However, the process boils down to the sale, purchase, or lease of property for the sake of capital gains.

There are various types of real estate investments, but here is a list of those  ones more applicable to the Pakistan property market:

  • Buying Files
  • Buying plots for resale at a higher value
  • Buying a property to rent out
  • Buying open land in anticipation of development

Let’s further discuss the basics of real estate investment in Pakistan.

BUYING FILES

A file is basically a future plot in a society without any allocation or possession. These documents are issued before the development of a locality and are a favourite among long-term investors. Once a file is officially linked with a developed plot, its rates go up significantly. It means that the return on investment at this stage can be quite high.

A file, as such, can be your answer to how to invest in real estate with little money, should you choose to buy it early.

BUYING PLOTS FOR RESALE AT HIGHER VALUES

This is one of the most common types of investment activities pursued in the real estate sector of Pakistan.

Basically, it involves investors buying plots and holding on to them until their prices go up; over time and with further project development. This venture, overall, can be quite lucrative. And in following through with it, you’ll never need to respond to the ‘why invest in real estate?’ query. Your profits will speak for themselves!

BUYING PROPERTY TO RENT OUT

Buying a house, apartment, or commercial property and leasing it out is an ‘income-generating’ type of property investment. You remain the owner of the property and get a constant return on investment through rental income.

BUYING OPEN LAND IN ANTICIPATION OF DEVELOPMENT

This is one of the less common and riskier types of real estate investment in Pakistan. It involves buying open and undeveloped land that is not owned by any society. Investors who go for this approach anticipate that a developer will buy the land from them at higher rates to establish a project.

Currently, buying open land is an ongoing trend in the various mouzas of Gwadar, which are being developed under the China-Pakistan Economic Corridor (CPEC) initiative.

WHAT ARE THE PROS AND CONS OF PROPERTY INVESTMENT?

Fixing money in the property market is not everyone’s cup of tea. There are both pros and cons of property investment to consider.

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