Real Estate in Pakistan: A Lucrative Yet Complex Industry

Some people in our circle say that real estate is one of the most appealing industries in Pakistan.

Below are different points regarding the situation here:

Even in situations like we are in now with inflation and uncertain economy; real estate is one of the best earning source. But we got to be sure in our direction while investing our hard earned money such as if we are investing for big monetory profits then commercial projects are the best ones. And if you're willing to build a house then you have to go for a developed ready for construction plot.

I had to visit a few places with a relative who wants to buy a flat, no, a studio apartment worth 35-40 Lac, for the purpose of investment.

Since the property market in Pakistan is largely uncontrolled, there are a number of ways in which Pakistani people can buy property.

In cities such as Karachi, people can purchase properties from individuals via off-market deals. This can be a risky process as the seller may not be legally entitled to sell the property.

Property developers are companies that construct new buildings and sell them to individual buyers. They often have presales where people can purchase units before the building is complete and the construction is finished.

Individuals may also buy shares in property development companies, which can give them partial ownership of specific properties that the company owns.

There are certain type of investments depending upon your budget, your investment duration, the return of Investment period,

For short term investment the trading of plots or plot files are good with approx 1.5 to 2% of return per month varying on the location and the place you're investing.

For long term investment the construction over the plot is preferred where you get the return of value addition as well , it will return approx 2- 2.5% monthly on an average.

For long term investment with passive income the renting the property is a good option where you directly purchase a ready made property and rent it out where you'll get the approx 0.3–0.7 % of the investment monthly and a appreciation of property when you sell it.

There are many ways to invest in the real estate sector in Pakistan. One of the simplest ways is to purchase properties directly from developers. However, it is important to do your due diligence and research before purchasing any property.

Another way to invest in the real estate sector in Pakistan is through mutual funds that invest in real estate investment trusts (REITs). REITs are baskets of ownership shares in real estate assets that are traded on stock exchanges.

Another option is to sign up with real estate crowdfunding platforms such as Aisha Partners that connect investors with individual property development projects. These platforms can help you find the right projects to invest in, and provide additional information on each project.

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So, while we were driving to the town where we were to meet an agent, whose number and address my husband had found for us through an online advertisement, I did some internet surfing. What kind of browsing? I pulled up some Quora answers and started reading them. The italicized text you see are those answers.

My own father also makes some investments this way, so I often listen to his discussions—sometimes on the phone, sometimes with my mother, and sometimes with my brothers.

There was one thing that bothered me, or you could say it made me very sad...

The agent who came to pick us up on his bike and showed us 3-4 flats, and even guided us back by having us follow him on the bike... If my relatives don't buy a flat through him, all his effort will be wasted.

These small agents who work online spend their entire day answering clients' calls, asking about their requirements, using their own fuel to show properties, but... They have no certainty that the client will actually purchase the property through them.

When we returned home, there was a discussion contacting other dealers as well, before making an investment... But what about the first agent who went through all this trouble?

We might end up reaching a conclusion by asking other people. But the first person who shows you the property, you never end up buying from them...

I think there should be a nominal fee for all their efforts. Then again, people will find some loophole in it and will abuse or misuse it. I am trying to convince my relative to buy the flat through this agent... He seemed to be a hardworking guy. But then you know I am so sentimental, and sometimes my ideas seem not very practical!

_{All pictures are mine}