Is it worth buying land in Pakistan?
Posted by dealanddeals.pk on November 1st, 2021
But staying on the topic, is it actually worth it buying land in Pakistan? Here are the different dimensions of the real-estate sector and purchasing land here.
The volume of the real estate industry in Pakistan
Recent figures released by the Pakistan Bureau of Statistics showed that real estate business accounts directly for 2% of Pakistan’s GDP. Documented part of this segment is somewhere between 0 to 0 Billion. But again, that\'s the only documented part. A 2019 survey conducted by the Government of Pakistan showed that more than 56% of Pakistan’s GDP is informal. Actual stats are not known but considering that real estate is the biggest market of Pakistan, undocumented real estate can touch the massive volume of billions of dollars.
These stats show how much buying land has the potential to pay back in the long run.
Is it worth buying land in Pakistan?
Keeping the answer simple and straightforward: Yes, it is.
When it comes to purchasing land, there are two broad categories. Firstly, buying a vacant piece of land, and second, land with some construction or infrastructure. Both are pretty nifty investment options but the former one is a lot cheaper than the latter one. In fact, it is the most lucrative type of investment in Pakistan.
Why you should buy land in Pakistan
If you are looking forward to earning good returns on investment in the long-run, multiple factors make buying vacant land the best option. Here are some of the reasons:
Some of the must consider points before buying land in Pakistan
If you are thorough during and before the process, it would save you from many potential troubles of the future. Some things you must consider before buying land in Pakistan are:
The real estate market offers a lot of opportunities but with that, the level of fraud is very high. For example, many housing societies in Pakistan are continuously selling properties in Pakistan with their lush marketing campaigns and promises of world-class facilities but those societies are illegal because they do not have their NOC.
If you are buying land from an individual, ask them to show and provide you with all the legal documents and get them attested. If you are buying land in a housing society, duly check the status of their NOC. If society doesn’t have the NOC, legislative authorities can ban or demolish the project anytime. This will waste all your investment without any chances of returns of even original cost.
Instead of falling to the charms of marketing campaigns, check yourself about the developments around your land. Visit the area and check:
If you are buying property in society, simply compare their current development status with developments 2-3 years back.
Know your purpose
Are you buying the property for the sake of long-term investment, to build a house on it, start a business there, to rent it, or for any other purpose?
The more you are clear about your purpose, the better property you can find.
We recommend you to get in touch with some reliable real estate agencies and get consultations from their expert property consultants. These people are a lot more aware of the market and guide you better in which property to buy and where not to invest your money.
Give importance to location
Location decides the worth of property. Land in the main city can be multiple folds worthy than a lot bigger land in suburban or rural areas. The better landmarks in the vicinity of your property, the more worthy your property is.
If the land is far away from the main city and it is not easily accessible, you can hardly earn any returns on this investment.
Have a clear range in your mind
Before even starting the process of land hunting, go through your finances and define a clear budget range for you. Once you have your range, find options according to that. It will save you both time and money.
Being clear about your budget will also help you to figure out how you are going to finance your purchase. Usually, the finance options available are one-time payment, band payment, and payment on installments.
Type of property
Defining your purchase purpose will help you figure out the type of property you need. If you want it for residential needs i.e. building a house and living there or to rent it, you need residential property. If you want to start a business or to build shops et cetera to earn monthly profits, you need to purchase commercial property.
State of market
Evaluating the state of the market at the time of your purchase is very important. Ups and downs are part of the market. If the market is booming or is growing, you can get good returns in a very short time.
Always make a purchase when rates are lower in the market and there are reliable predictions that prices are going to rise in the future.
Assessment of market value
Must assess the fair market of the property before finalizing the deal or making your offer. Get opinions from multiple real estate consultants or agencies.
When you finally find your desired property, be as thorough in the legal and documentation process as possible. Either hire a lawyer or real estate agency to represent you. Collect all the legal documents, previous bills, taxation documents, and everything possible. Do not go through any short cut and follow all the steps of property transfer in Pakistan. Usually, this process includes:
Buying land in Pakistan is the safest and most reliable investment option. It is perhaps the only option insight that can fight the monster of inflation in the country.
If you want to buy property, or have any questions about emerging housing societies such as Nova City payment plan, Capital Smart City NOC et cetera, reach us out anytime to benefit from the free consultations offered by Deal and Deals.
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