5 Types of Properties Ideal for Investing in Pakistan

The real estate sector is growing in Pakistan, with new projects opening up in all parts of the country on a quarterly basis. Due to this reason, the demand for real estate agents has also peaked. However, buyers interested in investing in the property sector should know about the types of properties that are available and the ones that are most fitting to invest in. And so we are here with this article to provide you with all the information you are looking for.

Types of Properties in Pakistan

The reason why investing in a property in Pakistan can be a benefitting deal is because there are a lot of potential categories that you can choose from based on where you would want your money to go. You can then put it to efficient and profitable use in the future. These categories include:

1. Residential Real Estate

Out of all the options, the most famed option is investing in residential properties. They serve a variety of purposes – you can buy a home, rent it or even sell it, whatever you find ideal. In Pakistan, buying and owning a residential property is rather considered one of the best investments an individual can make in terms of safekeeping for their future. And if you don’t want to live in it yourself, you can always rent it out, the options for which are large, as a huge proportion of the population consists of people looking to rent a home instead of purchasing it because it fits in their financial budget.

Residential properties are regarded as a long-term investment which include: Apartments, Houses, and Vacation homes. Apartments are usually rented because they ensure a monthly payment to the homeowner, which is an additional income. Quite similar is the scenario with vacation homes which are seemingly popular during winter and summer breaks when traveling is at its peak, and you can charge a significant amount of rent for your property and earn throughout the season.

2. Commercial Properties

After residential properties, commercial properties are the way to go if you’re looking to invest in a worthy property in Pakistan. This is because you have the options to make creative spaces for work, renting them out to companies, turning them into a pop-up stores or a center for leisure activities – there are tons of ideas to be exploited and be made a source of revenue.

Commercial properties extend much farther than the aforementioned categories. Property dealers may suggest utilizing your investment into buying a vacant plot and turning it into a cinema and a shopping mall, both. Although this would require ample amount of funds, but the benefits that tag along can be enjoyed for years.

3. Industrial Properties

Many of you might be familiar with areas like SITE and Korangi being the hub of industrial activity in Sindh. If not, you must know about Faisalabad, the center of industrial activity, having the largest textile mills in the country. In addition to the potential for industrial growth in the future, there are a number of reasons why investments in this sector can be especially lucrative.

Firstly, the versatile nature of industrial properties and their ability to be used for multiple different functions such as storage, manufacturing, assembling and more means that risks are generally lower hence, it comes as little surprise that this sector continues to attract interest from various investors.

Secondly, strong growth in the Pakistani e-commerce and logistics space driven by record-high levels of foreign funding for local start-ups has increased demand for warehouses and logistical facilities, creating new opportunities for industrial property owners.

Thirdly, amongst the different types of properties, industrial properties generally require lower and less frequent maintenance than residential properties, reducing the hassle for property owners.

4. Agricultural Properties

As of 2018, agricultural land was reported to make up approximately 47% of Pakistan’s land area. Strong demand for food and agricultural products means agricultural properties make great stable investments and continue to attract tenants from a large agricultural labor force, as demand for key food crops remains consistent regardless of the economic situation of the country.

Agricultural properties also provide reliable passive income, as land can be leased out to farmers who oversee the agricultural processes carried out on it while providing the property owner with a fixed income.

Additionally, as the government looks to boost agricultural output and improve food security, investors in the agricultural properties space can expect to see favorable changes and improvements as time passes; therefore, many property dealers may advise you to invest in this type of property.

5. Mixed-Use Properties

This is a type of real estate that can be utilized for more than one purpose. For instance, you purchase a piece of land which is large enough to build a twelve-story apartment as well as a supermarket on the ground floor. Through this, you get the opportunity to earn rent from the supermarket along with the income you make from selling each apartment unit, thus, making the return on this type of investment exponential.

Moreover, this type of property provides more housing opportunities and choices while enhancing the unique identity of an area and expanding its development potential. In addition to this, there are also tax advantages for such properties, as business owners are allowed to deduct their depreciated assets in order to reduce their tax burden.

Lastly, mixed-use properties reflect a positive impact on the environment by reducing traffic and pollution, which in Pakistan seems to be a tremendous problem. This is avoided when there is ample of parking space provided, and most of your local amenities are located adjacent to one another.

Parting Words

It is true that the types of properties available in Pakistan are varied and provide a range of options to choose from depending on your preference and need, which is why extensive research and consultation from multiple property dealers and family members/colleagues who have previously invested in land is essential. You can also go for the safest bets like Chapal Navinta Mall and residences so that you know your money is invested in the right place.

All in all, it is advised to actively work on building and expanding your property portfolio as the benefits for the future are long-term for yourself and your family.