The Smart Way To Get Started | Invest in Real Estate of Pakistan
The real estate sector of Pakistan is currently thriving. The reason for this perhaps lays in the fact that the incumbent government has finally recognized the real estate market of the country as a key financial and macro-economic indicator. Recently the government has introduced a myriad of real estate reforms packaged with tax incentives that have driven tremendous growth within this sector. According to the macro-economic and real estate analysts of the region, the exponential growth in the real estate sector and the reforms will help account for the correct measure of the volume of real estate transactions. Some of the experts are of the view that real estate is the single largest macro-economic indicator of the economy. Before these reforms – directed at documenting the real estate sector – the sector worked on dynamics of a parallel economic structure with its own supply and demand speculation. Another factor that has arisen after the current government’s move to document this sector is the major influx of new real estate investors in the market. These new investors are entering the real estate market of Pakistan at this time because of their confidence in the current regime and the fact that real estate transactions are now more transparent as compared to that in the past. The financial experts of the country are terming this influx of new investors a major breakthrough for the long stagnated real estate sector of Pakistan and are hopeful that the sector will reach new thresholds with this much-awaited inclusion.
The advent of technology has made the real estate sector a smart sector. This used to be an investment heavy entity before, however, with the advent of technology and new era real estate plans, anyone can become a real estate investor with the least amount of investment. However, one thing that we can all learn from veteran real estate experts is to be patient and never stop diversifying our investment. For newbies, it is always a challenge to find out their way to start investing. For all such real estate enthusiasts, housing societies are one of the best options to start investing. This is because these societies require lesser investment than the heavy-duty real estate commercial and residential projects and also require minimal paperwork tantrums. So here are a few tips on getting started with investing in the housing societies:
- The first tip to start investing smartly in real estate projects – especially the private housing schemes – is to determine your budget. This is extremely important because you don’t want to find yourself lost when making a buying decision. The good thing about private housing societies is that you can book plots in installments. This enables a large segment of society to take part in the real estate investment sector. But for this purpose, you should have a good idea about the budget you can set aside for these types of investments. For instance, if you are looking to invest in Capital Smart City Islamabad, then you should study the payment plan of the society in detail in order to determine if you can manage the budget for this investment or not. Although booking starts from a 10% down payment with the rest of the payment distributed in easy quarterly installment, as a smart investor you need to make sure that you will have enough funds to spare for the installments after you make the down payment. This also stands true if you are looking to make an investment in any real estate project. You must have a forecast budget for all the subsequent payments that you are going to make for a real estate investment.
- The 2nd most important factor when starting off with real estate investments is to determine the kind of locality you are going to opt for. For instance, if you are looking to invest in a housing society in Islamabad, then you should get acquainted and learned about the different options in the city and its suburbs. A pro tip, for now, is that the belt of land running from the whereabouts of Chakri Interchange towards Sangjani Toll Plaza is one of the most in-demand areas at the moment. This is because of the speculate growth this region is to see after the completion of the iconic Rawalpindi Ring Road and the China Pakistan Economic Corridor route. For starters, some of the best societies in the area to consider for investment are Capital Smart City, MIVIDA Islamabad, and Blue World City. Also, there are some budget options as well such as Al Makkah Town, Qurtaba City, Abdullah City, and Alharam City. In case you have a substantial budget for a very good location, then you should consider going for the housing societies located in Zone IV of Islamabad. Although most of the housing societies located in Zone IV require you to have deep pockets, the location advantage is exponentially large when compared to the prices in this region. Some of the good housing societies in this region are Park View City Islamabad, Bahria Enclave Islamabad, and CDA’s Park Enclave Phase 1 and 2. Similarly, if you are considering to invest in other cities in Pakistan, then you should do a similar type of location analysis in order to narrow down to the correct investment spot.
- The 3rd tip to invest smartly in real estate is to diversify your investment. If you have enough saved for one project only, then you are good to go with that. However, if you have more funds available then you should diversify your real estate investment portfolio to make the best use of your money in terms of returns. For instance, if you are buying a plot in Lahore smart city, then you can diversify your investment by going for a couple of residential properties coupled with a commercial plot option. Similarly, if you are investing in Capital Smart City Islamabad, then you should also consider pooling in some money in Park View City Islamabad or Blue World City. As a real estate investor, the diversity of your real estate portfolio should be your strength. These are only some of the basics for real estate diversity. Using these points, you can make a diversity plan for yourself as well.
- The 4th and final tip is to ensure that you are investing in a credible real estate project that is commissioned after completing legal obligations. For instance, if you are looking to invest in Islamabad, then you should preferably go for a housing society or a real estate project that has a NOC from either CDA or RDA. Or in case you have an opportunity to invest at the time of pre-launch, then you should investigate the repute of the developer and the number of projects they are already doing and delivered. Taking these two tips into consideration when making a real estate investment will enable you to steer away from any sort of miss-commitment or fraud.
These are some of the factors that you should consider when investing your way smartly for the first time in real estate. Deal & Deals is a premium real estate agency of Pakistan that provides free real estate consultation services as well as on-spot bookings for some of the excellent real estate projects. Fill out the form below and one of the real estate investment specialists from Deal & Deals will get in touch with you to help you get your investments right.
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