1-Kanal House Construction Cost (A-category)
Do you want to construct a 1-Kanal house but unaware of the cost and procedure? Consider this the right place where all the queries will be answered of yours.
Before proceeding ahead, you must know that the premium societies of Pakistan are among those famous societies where 1-Kanal House is considered one of the grand homes. The outrage will depend upon the good quality materials you are using and moreover, the price of grey structure and after that could be affordable or not. The house can be more prone to fall in A-category as most of the people do not compromise in material, fixtures, and designs as well. However, they are being built under such circumstances.
First things first! Whenever the idea of construction pops up in one’s mind, that individual would probably think about the grey structure first. As construction required two distinct phases; grey structure and finishing phase (after grey structure). We will be discussing both the processes right here in this blog solely to make stuff quite easy for you.
Total Covered Area
Apparently, the part of the debate is the total cost of the 1-Kanal house but before that, you have a know-how of the cost per square foot. Hinging on the double story which is specified to 6,190 sq ft. one story out of two requires 3,225 sq ft. 5 rooms are attached along with bathrooms, 2 living rooms, 1 drawing, and dining room, 2 kitchens, and a lawn is also included.
The price of construction doesn’t include the price of a property, fees of an architecture, map-approval, and meter for electricity, gas, and connection of water. Furthermore, the cost of tube lights, fans, appliances, and switchboards is also excluded.
Let’s dive in to get the idea of each and every material to be used in grey structure and finishing framework.
Approximated Construction Cost of Grey Structure
Grey structure is known as an initial structure that ends after completing half of the house. It is built under the supervision of contractor, also constructed as planned. You might want to know the material used in first half of construction and the cost of material per square foot, we have got you covered.
- Gravel (Bajri)
- Sand (Ravi or Chennab)
- Rebar (Sarya)
You can opt for any one of them; if you go for bricks then you must be aware of the market rate which is 10,000 PKR for 1000 bricks (10 PKR per brick), So the estimated total for the required bricks for 1-Kanal House would be 125,000 that means (125,000 x 10 = 1,250,000 PKR).
If you opt for block, then the required market rate is 12,500 PKR for 1000 blocks (12.5 PKR per block), the approximation of blocks for building 1-Kanal House is 135,000 that means (135,000 x 12.5 = 1,687,500 PKR)
Total Cost of Bricks = 1,250,000 PKR
Total Cost of Blocks = 1,687,500 PKR
The second name for gravel is Bajri, the leftover bricks are crushed into smaller pieces to form Bajri. So, for constructing 1-Kanal House, the expected amount of gravel is 2,200 cubic feet for a double story house to form the beds for floors. The market rate for Margalla Gravel per cubic feet is 70 PKR which means (2,200 x 70 = 154,000 PKR). If you are opting for Margalla gravel then here is the total cost.
Total Cost of Gravel = 154,000 PKR
Sand (Ravi or Chennab)
The rates do change each year depending upon the budget of construction. So, whenever you plan to build a house, there are two kinds of sands required to set up the framework of a house; Sand of Chennab that comes from river Chennab, and Sand of Ravi that comes from the river Ravi. For establishing 1-Kanal House, the total requirement for Ravi sand is 5,250 cubic feet at a pace of 20 PKR which means (5,250 x 20 = 105,000).
Out of both of these sands, Chennab is of good quality and slightly expensive than Ravi sand. So the maximum requirement of this sand is less than that of Ravi, however, 2,100 cubic feet for a 1-Kanal house at a pace of 35 PKR that means (2,100 x 35 = 73,500).
Total Cost of Ravi = 105,000
Total Cost of Chennab = 73,500
For the construction and purposes at least 1,600 bags of cement are required. Plenty of companies in Pakistan claim that the quality of their product is the best, but for a matter of fact, almost all of them provide the same quality as the rate is slightly the same. Per bag of cement costs 550 PKR that means (1,600 x 550 = 880,000).
Total Cost of Cement = 880,000 PKR
Rebar is also known as Sarya which works as a strength in the unit. The requirement is in tons for a 1-Kanal house, and around 9 tons are necessary. The market rate per ton of new Rebar is 150,000 and for the old, 90,000 per ton. It sums up to a total 1,350,000 PKR new Rebar is required for construction and on the other hand, a total of 810,000 PKR old Rebar is the requirement.
Total Cost of New Rebar = 1,350,000 PKR
Total Cost of Old Rebar = 810,000 PKR
Estimated Construction Cost for Finishing Phase
After the completion of the first half of construction (grey structure), the second half begins, let’s call it the finishing phase. This phase consists of installing pipes for sewerage, plumbing, and wiring as well. Anyhow, the pipes are laid through the walls for the wiring of electricity and plumbing. Pipes for sewerage and purposes are laid beneath the floor beds. This phase completes in 2 processes;
- Piping, Plumbing, wiring, and Pseudo ceiling
- Paint, Flooring, and Wood work
Piping, Plumbing, and Wiring
If you want to make things easy and long-lasting then piping for plumbing and wiring for electricity should be of good quality. For wiring, PVC (polyvinyl Chloride) pipes are used and plumbing turkplast is used. The pipes for gas connections are different though good material pipes are required in both cases.
Meanwhile, electrical wiring requires an expert’s help because only they would know the criteria for distributing proper electricity throughout, in addition, the wiring used for electricity must be reliable. Two kinds of wire need to be discussed; 3/29 solely for low voltage supply and for high voltage supply, 7/29 is used. The included cost for wiring, labor, sockets, and coils will be given altogether.
The Total cost of Piping = 800,000 PKR
Wiring and Plumbing = 410,000 PKR
Paint, Flooring, and Woodwork
Yes, you are all done with the 80-85% construction and the only thing left is finishing. Before painting, the walls are plastered to fill unusual holes and gaps in between. Painting along with the material and labor as well would cost equally. Flooring begins right after floor beds being laid, now tiles are required for this purpose. Moreover, you can opt for any kind of tiles you want up for the flooring. After flooring comes woodwork which requires readymade doors at least 35 in total for 1-Kanal house and windows, cabinets too, etc.
Cost of Paint = 200,000 PKR – 450,000 PKR
Cost of Labor = 350,000 PKR
Cost of tiles = 1,700,000 PKR – 2,500,000 PKR
Cost of Labor = 96,000 PKR – 288,000 PKR
Cost of woodwork = 110,000 PKR – 115,000 PKR
Constructing a 1-Kanal house is not going to be the easiest task. It requires a handsome amount of money as well as good material for covering both the phases of construction; grey structure and finishing. For grey structure and purposes, you need bricks/blocks, sand (Ravi or Chennab), gravel (Bajri), cement, and Rebar (Sarya). When you are done with a grey structure, the next step is finishing which requires piping, wiring, plumbing, woodwork, and flooring, etc. you can calculate all the expenses and get the construction done for the 1-Kanal house. For further queries and details, contact us.
Pros and Cons of Building Your Own House
Building a house is a very complicated process. It requires energy and enough money as you want perfection in every aspect, whether a lifestyle, location, or neighborhood. You can get everything according to the plans you have made your “dream home” to look like. Eventually, there is a complete process before building one, first of all, you have seen or imagined how your home should look like, right after that go for proper planning. Planning is meant to cover all the costs requiring labor, painting, and almost every possible commodity. Instead, if you opt for purchasing then there’s definitely renovation becomes mandatory.
How costly is it to build your own house in Pakistan?
In Pakistan, it is quite the toughest task and process for purchasing or building a house. As the economy of Pakistan doesn’t allow us to go with the flow, in short as per plan. An increase and decrease in the economy would be an obstacle, so we recommend you to get it done when there’s a downfall in prices. Anyhow the total cost of construction per square foot ranging from 2800 PKR to 4000 PKR these days. Furthermore, it depends on the structure you are willing your house to build upon.
There are certain advantages and disadvantages you might want to put inconsiderate before building your own dream house. Here you go!
Benefits of Building a House
Building a house involves plenty of benefits, here is the reason why you want to opt for constructing your own home despite buying it.
- Slightly Affordable
Affordability comes first concerning how much you can invest in accordance to the planned budget. However, buying a home requires renovation even if you pay as equal to constructing personally. So it is one of the benefits where you can save money and decorate the way you want your home to be.
- Exceptionally Customizable
Customizing a home that meet your needs would be advantageous in various purposes. Let us tell you how? Do you want a big kitchen or a garden or you want a big open space? You just plan it and briefly explain the idea to that particular architecture about how you want it to be. Follow your dreams and make your house the way you want. More often there would be chances of renovation in old houses, as you know nothing stays same and especially the appliances are made with some sort of warranty. Better save that money to decorate it luxuriously.
- Efficient Energy Structure
After affordability and customization, here comes efficiency of energy which means well-organized structure of power or energy state, whenever you opt for building a house. The entire structure would be new, the appliances that provide energy would be fresh and new so there will not be any chances for renovation. It would save you money as well as utility bills. However, you would be able to save even more.
Downsides of Building your Own House
Without uncertainty, there come certain major downfalls if you opt for building a house on your own. The cost might run out of the flow causing it to stimulate the budget out of extent. That is why you are directed to reach out to all the possibilities along with perfect research. You might want to get acknowledged as if how does it generate the downfall.
- Highly Expensive
The fact is no way near hidden that the prices are costly enough in Pakistan. So, it is understood that the price of purchasing counts low with respect to building a new one. How? Although, the one you are willing to make would be the perfect you have ever come across, moreover, the one that meets your needs. However, it has become quite difficult to mortgage because the rates are interacting with the sky. If you don’t bother to get with plan and research then you are not able to build it under the expected budget. So the call is yours!
New houses are usually built in unorganized or undeveloped communities that means there might be fewer facilities nearby including, smaller sizes of yards, and a closeness to your neighbors. It won’t be present in the countryside so there’s a high chance of confronting mud and dust until and unless you are capable of affording a person yard. The construction around will not stop until it becomes a fully established community. It can last for weeks, months, or even years, so this basically is a downfall.
- Lack of quality
As a matter of fact, new houses must follow certain building codes, there’s a huge possibility of human error during construction as such, it seems necessary to inquire about the material’s quality as well as how the builder will be using it. Better refrain from focusing on customization before the budget and always look for good quality.
Select the Right Builder
Opting for a right builder is a real game. Obviously, a lot of competitors out there are working so you have plenty of options. However, if you couldn’t judge him right on time then it will be regrettable for the rest of your life. Building a home in this era is already one of the trickiest tasks that have ever existed. So, choose wisely.
Building your own house requires a big amount because you want your desired house to be perfect. When it comes to purchasing a house, the renovation is the only option left. So we would recommend you to go for constructing one for yourself, why? With the help of incredible research and planning, you can make your dream house a reality, moreover, within budget. But if you are not good at it then you are all set to purchase. It makes a difference because there’s plenty of costs is required, not to forget! New things demand more investment. However, build one for yourself and family as it is affordable, customizable, and energy-efficient. At the same time it can turn out to be expensive, solely depends on your capabilities. For further queries and details, contact us!
How to Choose the Best Real Estate Agent for Purchasing, Renting, and Selling Property
Do you know? It is one of the hardest tasks to find the best real estate agent for your property. Well, yes things can be difficult at first because buying or selling property demands energy and some brains. Moreover, a professional is highly required for this purpose and reach out for more if you didn’t get to understand any, so recruit wisely.
How can you find the right one? Apparently, this question is not as difficult as it seems. As a matter of fact, innumerable professional agents are working out there and dealing with so many people, though in certain circumstances you would not get the best for you. Nevertheless, if you are willing to acquire an expert then enlist some and follow the given instructions.
There are some restrictions you must consider before selecting which can make a difference. However, do not hire as if he is not eligible enough to find you the finest property in the market. In terms of getting the perfect guide and suite property, you must follow some valuable tips and for that staying on this article is mandatory.
Difference between real estate broker, real estate agent and realtor
First things first! You must be aware of this difference, as soon as you have perfect know-how related to the realtor, agent, or broker then you are all set to choose who is going to help hereafter.
A real estate agent is a professional who has taken an exam and got a license solely to purchase or sell out homes on the customer’s behalf. What if he wants to become a broker, he must take an exam for that to get a broker license in order to complete the required education from the specific state. There are certain agents working under a broker. Besides, a realtor is a member of some sort of association, somehow he sets up standards, rules, and regulations. A realtor can be a broker or an agent, but a broker or an agent is not necessarily a realtor. You have all rights to ask if that specific agent is a realtor.
What to Observe in a Real Estate Agent?
Before opting for one, you are supposed to observe some obvious things which should be kept in consideration further, whether you are choosing another. You must be observant as if he is:
The best quality in a realtor is that he should be responsive. As you know that the buying and selling of a house is a really quick process where you should stay prepared. What basic obstacle is more prone to come in the way would be the irresponsibility of an agent. Ask the neighborhood as if you are concerned about your dream house and in case of finalizing the decision, you must be knowledgeable. Eventually, don’t stop yourself while asking dozens of questions from a real estate agent. Check thoroughly if they attend your phone calls, or, Respond to emails. It may sound a little bit childish but for your better future consider it a necessity.
2. Full-time Availability
Usually, you would want to ask questions regarding the property and apparently, you are not genius enough to ask all the questions in a single meeting. So stop the hesitation right there and inquire as much as you want because you are hiring and paying for that purpose.
A realtor is a salesman, but if you’re getting a sleazy vibe, that is the time to walk away. You shouldn’t get under pressure if you’re not comfortable with, push him back if he seems to abandon you.
How to find the best real agent?
Now and then it is not necessary to opt for a top-selling agent, why? Because they are more likely to have a big team along with a vast and spectacular advertising budget. Due to this, the attention might get divided but if you want personal attention then opting for personal real estate agents would be the best choice.
Besides, you can find yourself an agent with less experience. You must have been thinking why right? Well, there’s a lot to be part of the conversation as an inexperienced agent is much more enthusiastic about his work and in seek of getting experience so he tries to provide the best he could. Not necessarily speaking, consider it a tip.
Here is the reason why you should consider before opting the finest agent for you:
1. Enlist number of agents
Are you thinking about how to find the number of agents and enlist them particularly? Well, it is way too easy now. Let us apprise you how? As the Internet and Google are working too fast, that means it showcases all kinds of knowledge related to what you search there. Oh, that’s too simple! Agents from your areas are just one click away, so do not waste your time finding out there where you only get disappointments. Create a list of agents you think would turn out to be engaging then opt for and interview at least three of them.
2. Ask Lots of Questions
If you are done with the list thingy that’s where your first step comes to completion. Now, what next? After enlisting three agents you would want to meet them in person or on call, it depends but face-to-face meeting sounds good. This is going to be that person who will guide you from minor to major problems and benefits. Feel free to appoint a meeting to get everything done in front. Also, refrain from those who do sugar-coatings, better decide by using your brains and ask questions like:
- Do you do a full-time job in real estate?
- How much longer have you been licensed?
- Do you have a team to work? If so, will I be able to work with you or another member of your team?
- What is the ratio of referrals in your business?
- How many clients do you deal with at one time?
- How would you want to communicate?
- In terms of complaint from a client, how do you handle?
- What sort of contracts do you offer?
To start the conversation, these questions would help you out loud.
3. Request for the References
Basic information regarding the past experiences of a client is one of the important tasks and ask him each and everything right there. He is supposed to provide you all the information and even the contacts of clients he has worked with, which will benefit and moreover, stressed out. For your satisfaction, call all of the clients and ask for the reviews. These important tips will help you out and about.
A good real estate agent is required in terms of buying, selling, or renting properties. If that particular agent is not eligible enough to meet your needs then firing him would be a better option that doesn’t exist. They may sugar-coat in several circumstances and hide the issues through which you can get trapped. Hire an agent that matches your personality, available full-time, communicate differently, and do not get exasperated when you ask questions. You are solely one good agent away!
Residential vs. Commercial Property
Are you confused about buying which of these properties? Then you’re at a right place, so go ahead to remove all the confusions you are struggling with and search for what’s best for you. Talking about the best and more secured opportunity to invest in Pakistan is real estate market which not only provides profitable properties but also helps you to be financially stabled.
There are uncountable options in properties but two have really got an importance out of all those, hence are known as commercial and residential properties. These properties have always been a part of debate since decades. Let’s have a look on both types and what they have more to offer!
What is commercial property?
Commercial properties such as retail shops, Hotels, public necessities, office buildings, warehouses, industrial buildings etcetera. From commercial property, an owner can start a business either owning or renting a space as companies tend to rent the property rather than owning it. The commercial property is known to be considerable investment market as real estate is not the key business so they prefer not to buy but rent. This is way better and productive asset than residential property.
The Benefits of commercial Property
Usually there are so many benefits of owning commercial property because owners of business face different issues regarding either rent or buy their office space. In real estate market, a commercial property can provide the basis for growing businesses. Following are the benefits you should be aware.
- Favorable Rates
- Fair Appreciation
- Reasonable Prices
- Chances of Cash flow
The mortgage interest rate is the most important cost of buying real estate property. Rates are always in the favor of purchaser as it continues to be low all the time. It is usually one of a difficult task to maintain a spotless financial profile to obtain a challenge, meanwhile, it is better to be prepared with a comprehensive business Idea so that success would become easier for you. So this is one of the basic benefit one could ever come across.
When you work with equity and justice in your business, it becomes worth profitable so that you can purchase to grow your business better. To manage your business with high versatility, this would help in all the purposes. At the time of retirement, you can also sell your property to another purchaser as it gives so many options in the time of your needs.
For dental practices, commercial properties are less expensive than before, same goes for industrial, and office spaces. It costs less to buy a property than to rent it, during the time of real estate downfall, the value of property decreased and the rates were high. But now is the time to purchase or rent a commercial property as the prices are low enough to meet your financial status.
Chances of cash flow:
Cash flow is what we actually wish for, whenever investing in a business. So if you buy a commercial property that contains a space for residents then you definitely have further options for cash flow through a rental income too.
What is Residential property?
Apparently, Residential properties are those which includes properties other than commercial real estate, such as apartments, single-family houses, and townhouses etcetera. Now it depends on property owner whether to rent it or live in it. Renting means to enjoy extra income so this is why families prefer to rent residential properties in case of fruitful outcomes. It is definitely not beneficial for those who lives in someone’s house as this place is considered as a primary residence for them. Now your wait is over, you are all knowledgeable enough now where to invest or what to purchase in both the properties.
Benefits of Residential Property
Residential properties involves plenty of benefits for the people who rent their properties as well as to live in it. Following are some of the advantages you should be aware of:
- Value dependency
- Beneficial Investment
- Rental income
- Opportunity for unemployed people
It is the best way to make money as per increment in properties which means whenever the worth of property increases, you would get benefitted in terms of renting it. In case of purchasing the property, the decrease in value would be fruitful to buy at this time.
This type of property can let you leverage your investments in a way that if you purchase a house and invest money for the renovation purpose to make it look attractive towards the rentals. The investment you do a single time would become profitable as an outcome.
In a world full of competition, the income from a job is not enough in this era as it requires other than needs. So renting your real estate residential property will be the best option to get income every month to fulfill all the requirements, also saving that money in future would be a perfect idea.
Opportunity for unemployed People:
Renting property is one of the best options for unemployed people, you just have to invest your saving in a property and rent it to get income every month.
Types of Commercial and Residential Property
There are several types in which four are needed to be discussed
The commercial properties come by for business and investment purposes which means people gat shops and office spaces to earn income, monthly. However, residential properties are made for nuclear or joint families. The only purpose is accommodation of residential area.
This type is purely used for commerce and business, so offices and shops might act as basic business centers for them. Meanwhile, residential property is also about renting and you have an option to sell whenever the right time comes.
Laws and Regulation:
The residential property has different laws and regulations than a commercial property as residential is way more lenient because it focuses on the rights of residents while commercial laws and strict and based on equal rights, so both parties are required to negotiate.
Design and structure:
Residential property always comes up with different design and structure like design of apartments hit different and architecture of house hits different. On the other hand commercial suffers different costs in terms of warehouses, piping and wiring, all costs hit differently.
Investment in Pakistan’s Real Estate Market
In real estate market, 2019 is considered as a worse year for Pakistan property. As we know that buyers or investors are always seeking for the best time to invest so maybe 2020 is going to be a perfect year for them to invest in market. Though sellers want to know about their properties to be sold out and would look attractive towards the buyers or investors. As you know that this market is beneficial for business purpose, like construction etcetera, so basically 2020 will turn out to be advantageous for suppliers and purchasers as well. Investing in the properties don’t supply shelter for living, anyhow, it looks like a best resource for saving money for one’s future.
What Buyers and Sellers are supposed to do?
As we have already mentioned about 2019 that it has been the worst year for both buyers and sellers. However, sellers are not in good condition as compared to buyers because a seller has only two options, first; they should wait for the price to get high again. Second; sell their property at a low prices to ignore bigger losses. On the other hand, buyers and investors are supposed to get knowledge about the market of earlier 5-10 years. However, 2003-6 and 2013 were the best years for buyers, yet 2007 till 2009 and now 2019 were the worst years.
Recent Trends of Realty Estate Pakistan:
- Condition of agents:
Due to the fall of real estate market, agents were badly effected and we got to know through current news that about 40-45% of them have already left because of low income. So condition looks worse due to the fact that they have confronted great loss and severe crisis.
- Capacity of property undertaking:
Recently, transactions found to be lowest as compared to 2015-16. In 2016 transactions and data file transmissions were recorded 180-200 on daily basis in DHA Lahore but in 2019 it turned out to be 10-20. Lower amount of undertaking is directly proportional to low investments in real estate so apparently this equation leads to a price decline. As capacity of property dealings is an exemplary indicator of the conditions of market.
- Transfer of market to buyers from investors:
Pakistan property has changed to genuine buyers from investors, buyers who now only buy properties to live in. The transfer has now ended and price too have cooled down. But before this, Pakistan property on daily basis used to market shares and stocks.
Valuable areas for investment in 2020:
Are you looking out to invest some handsome amount where you will be benefitted too? Then you should be likely to invest in subsequent areas of Karachi without being remorse at the end of the day.
- Gulshan e Maymar:
In 2019 this area has changed a lot commercially and has done an uncertain job to make it valuable for investors. However, investors earned a very handsome yield in commercial areas of Gulshan e Maymar against their investments. Although, this area is considered one of the famous areas of Karachi that contains amazing parks with beautiful infrastructure and also is clean as compared to other commercial areas of this city. Anyhow, investing in such areas would be advantageous.
- Bahria Town Karachi:
Bahria town is known to be one of the biggest developments, Karachi has ever come across, which has given a unique concept of gated residential advancement. This project has given so much to the real estate sector like jobs for construction purpose and much more. This is the only residential society around Pakistan that is deficit free from security and power. After getting huge success from Lahore, it then expanded in Islamabad and Karachi as well. Though, without uncertainty bahria town Karachi becomes even more successful because of having elite lifestyle, safety and vast land. Bahria town has not only made elite class houses and flats for the upper class community, yet, also made Awami Villas for lower and middle class community. But due to certain circumstances in land disputes and non-reimbursement of some properties, regrettably we will not recommend you to invest in 2020 because it is still struggling. So this year, better refrain from investing in bahria except for some blocks.
- Defense Housing Authority (DHA) Karachi:
Defense Housing Authority lie under the administration of Pakistan Army and is an another massive success in housing schemes. DHA has expanded in distinct cities of Pakistan such as Lahore, Karachi, Islamabad etcetera and currently it is launched in Gujranwala and Multan as well. DHA come under highly secured areas though it is called an armed area. So investing your amount in here would definitely be beneficial in 2020 as we have already elucidated its features and exquisite infrastructure.
The residential development schemes such that, Bahria Town and DHA are playing cardinal role in the advancement of real estate sector. By the government plans and continuous efforts from such residential would evaluate this sector and it will definitely increase the economy of our country in the upcoming years.
Basic advice for investors in 2020:
This year would be beneficial for the investors, likewise PM Imran Khan has already given permission to invest and no queries such that, where did this money come from or any question regarding your income will be asked. Consider it a plus point because from now onwards you are free to invest. Before buying or selling any property, you survey different categories like apartments, houses, industrial, residential or commercial area and invest wherever or whatever you want but we advise you to look after every possible complication that would refrain you from misleading by the real estate which has no value. It is solely way better to invest in less popular area as prices are going to increase in future as predicted. Try to be real estate investor not a risk-taker, therefore, do not buy illegal properties just for the sake of investing less money because somehow, you are going to fulfil its requirements if caught red-handed.
Market insights: Property Investment in Pakistan – Stay Ahead of the Markets
Purchasing a home (whether a house or an apartment) is widely considered a secure and profitable form of investment. And in Pakistan’s case, there is more truth to this statement than meets the eye. A distinctive feature of the country’s real estate sector is that it hits record highs and lows over a relatively short period of a few years. At times of bullish trends in the market, the sector attains unprecedented growth levels of over 10%. In sharp contrast, the realty industry in most other parts of the world follows a more steady growth pattern.
The State Bank of Pakistan (SBP), in its report on ‘The State of Pakistan’s Economy’, recently noted that the combined contribution of the construction and housing sectors “has been consistently higher than nine-percent over the past decade”. The document further mentioned that the real estate industry stimulates activities in other affiliated sectors of the national economy – such as cement, wood, steel, bricks, and cables.
Unprecedented Growth Trends – Leading to High Investment Returns
The central bank also cites data on concurrent market prices in the same report. Since 2011, according to estimates, the prices of plots in Pakistan have nearly tripled, whereas house prices have surged by 139%. Experts identify this market dynamic as having been fuelled by intensive speculation. They say that investors in Pakistan treat real estate as a commodity: property is purchased in bulk, and later sold for higher gains.
Such activities are no longer limited to the mainstream urban centers. Gated communities, for instance, are increasingly gaining traction in the smaller cities, as opposed to their somewhat slower entrenchment in major metropolises like Lahore, Karachi and Islamabad. These large-city locations have almost reached saturation levels concerning their land availability for new projects. A large number of builders and developers have also opted for apartments and mixed-development situated in the suburbs of these cities.
In documenting these trends, local property experts think that increased levels of urbanization and migration have resulted in the development of second-tier city centers. They also see no merit in the perception that the residential and commercial projects in these areas are affected by low consumer demand. Instead, they contend that the residents of smaller cities have a lot of buying power and affluence – owing to a flourishing agrarian economy that works to keep their pockets full.
Exorbitant Profits are ‘in for the taking’
When questioned on why real estate is considered to be the most attractive form of investment in the country, property market gurus refer to it as being a staple mode of securing hard-earned money that yields both short-term and long-term gains. Investors, further, have the option to choose from plots, houses, farmhouses, and apartments; some of the safest kinds of securities on offer.
A good way to sift through these choices (as many locals have learned by now) is to make use of one of the many online platforms that have recently emerged in the country’s web-scape – all targeted at cashing-in on some part of the real estate pie. Some, such as the recently launched feeta.pk, work by providing free access to dynamic property listings (considered ready for the taking). Others are organized more along the lines of a conventional brick ‘n’ mortar real estate brokerage – where you first have to go through a ‘middle man’ to connect with your preferred property option.
An Expats Guide to Invest in Pakistan Property
Expats are those nationalists of a country that works day and night for their country as well as for saving a better future for their children and family. A huge amount of Pakistanis are also working in other countries and send a large amount in the form of remittances to their motherland. Studies show that overseas Pakistanis sends almost 11.8 billion in the form of remittance if the first 7 months of 2018 from which most of the amount invested in the real estate sector. Real estate proves to be a beneficial sector for many years and that’s the reason that every ex-pat wants to invest in this sector. So here I am ging you some of the expert advice that will help you to secure your hard-earned money and also earned some handsome profit. So if you are an ex-pat and reading all this then believe me you are in the right place. Some of the major guidelines for ex-pats to invest in Pakistan that they must have to acquire are as follows:
Register As a Tax Filer:
The first thing ex-pat must have to do before investing in the real estate sector in Pakistan is to register as a tax filer. As the government of Pakistan also providing a lot of facilities to filers and has tightened the rules for the nonfilers. As you become a tax filer you pay your taxes to the government regularly and registered your purchasing property in the records of government so there are no chances of frauds and also by becoming a tax filer you pay much less in the form of taxes as compared to nonfiler as a nonfiler pays an almost double amount of taxes while purchasing any property. So don’t late anymore and become a tax filer and save your hard-earned money.
Invest In Selected Societies:
One of the most important rules you must have to follow while investing is to check the society owner’s previous record. If you get some benefit in some small private societies in the past then it does not mean that you always get benefit from the private societies. Investing in private colonies or societies is a matter of great risk. But you don’t need to worry anymore as we bring here some of the verified housing societies such as:
Defence Housing Authority: DHA is a long-running and scandal-free housing scheme till the date.DHA launches its new societies every year just like DHA Multan and DHA Karachi are new ever projects in which you can invest.
Bahria Town: Bahria is the second most safe and valuable property to invest in Pakistan. If you are looking for mid and long term investment then Bahria town would be a great place to invest for ex-pats. It is my personal experience regarding investment in Bahria that there is a variety of options when you look to invest in Bahria as there are many blocks where good opportunities waiting for you. Similarly, Wapda Housing Societies and Gawadar Housing Schemes are those societies where ex-pats invest fearlessly and earn good profit.
Go For Long term and Mid Term Investment:
Foreign Pakistanis are those working hard for their country and it’s not always easy for them to come to Pakistan frequently or after every few months. So a suggestion for you that never invest in real estate using short term. Always invest for a longer period that not only gives you maximum profit but also saves your expanses of traveling. Try to invest by keeping in mind 2-5 years that prove to be a golden period for the ex-pats. So avoid the short term and prefer mid-term and long term investing as property buying and selling is a process of full intention.
Bypass Marketing Ploys:
Pakistan is a country where thousands of ex-pats invest in the real estate sector and unfortunately, thousands of scammers take advantage of the lack of interest of ex-pats as they are away from our country and don’t know gimmickries that are popular in our country. If you are investing in some unknown areas or societies that we mentioned above then it would be a safe zone of investment but if you are a risk-taker and want to earn some big then be careful from these frauds. A lot of marketing geniuses in this sector that just see their benefit. But you don’t have to worry anymore as we bring some of the best suggestions for you to remain in a safe zone. All you have to do is to deal through some third party consultant in your deal that gives you a complete analysis of the property, pros, and cons of the location and also provides you a comparison in different properties. So don’t worry anymore and invest in Pakistan with an open heart.
Avoid Investing In Buildings Or Houses:
Another important and valuable suggestion for you while you are going to invest in the real estate sector and also you are an ex-pat than avoid investing in houses or buildings. Yes, you are reading right, if you are thinking to buy a house and want to give it on rent then it proved to be a very bad decision for you. As you buy a house it will cost you much and also as time passes the building gets old and the price of the construction reduces frequently. Also if you give it on rent then you get only 2-3% in return from this investment. So overall the studies and experiments show clearly that investment in housing and building always proves to be a bad decision. If you are thinking to buy a house for you and stay here when you come to Pakistan with your family as most ex-pats buy houses for their stay then it would be a valuable decision for you as well as for your family. So if you are thinking to invest in property and have some fear of loss then no need to worry anymore and follow the above fascinating ideas that prove beneficial and future securing for you and your family.