Why Investors are Looking towards Real Estate in Pakistan!

May 07, 2016 by Admin

real estate Pakistan

Land never depreciates- a very famous accountant’s sentence. It clearly says that real estate is such an asset which never loses its value. Rather it’s a property, value of which increases over the time period and increases quite magically. No matter what’s the inflation rate, growth rate of the economy, land’s value always increases and yields profits for the land owners.

Investment opportunities

Investment opportunities are searched by the financiers whenever they have excess money to put in. Almost all the sectors have a risk factor in them, whether high or low like industry, services etc. But in real estate, the risk is not an issue at all. Yes! It’s the best option available.

Industry slump in Pakistan

In Pakistan, the industry is facing slump in recent years due to power crisis and other problems like dearth of quality raw material and labour. So the investors hesitate to put their funds in the industry sector. Ultimately, they put their savings in the real estate sector to make their investments safe and profitable.

Why real estate instead of any other option?

As described earlier, it’s the only asset, worth of which always increases. It’s an evident fact that an asset, whether machinery or anything else, gets decreased in value with use as the time goes on. Depreciation is a universal truth! But real estate is such an asset which is exempt from this rule. A land worth Rs. 1000000 is definitely worth Rs. 1100000 tomorrow! So the investor has no reason to deny this option.

Business examples of real estate

Who among doesn't knows about mammoth shopping malls which are constructed in Pakistan throughout the country? Pace, Panorama, Hyper-star, Metro and many others have huge areas of land under their roofs. This all area has been made into working, thanks to the real estate businesses. The investors have made a very safe initial investment by making shops in these plazas and then have either sold them or let them out on rent. In both the options, the seller is able to generate high amount of revenues.

From the point of view of investor, a business spot is generated. Many people get employment as a result and hence economy gets a boost up. In all this process, a huge character is of real estate in Pakistan.

Housing schemes

The roads of Lahore, Karachi, Islamabad and other numerous cities witness huge farmhouses, bungalows and houses. DHA Lahore Houses, Bahria Town Lahore, Gulberg Lahore Bahria Town Islamabad Houses, DHA Karachi and many other housing infrastructures are great examples of real estate investments. People are today able to buy their own houses owing to real estate.
 
Real estate is an even more safe investment when it comes to housing schemes. It’s a very safe way to earn profits. Purchase a land first. Then either construct a house on it and sale it, charging a price which yields sufficient profit. Second way is to acquire a land and then sale it after some time when its value gets appreciated and let the buyer make a house of his own choice.
 
So by and large, it is very much evident that real estate is Best Avenue to invest in current scenario of Pakistan’s economy.