The real estate sector of Pakistan at large is witnessing an exponential steadiness and growth. This growth has proved to be Pakistan’s best mover and shaker of the country’s macro-economy. The real estate sector of Pakistan remained largely dull and stagnated for over a period of 2 years. The reason behind this dullness and stagnation was perhaps an excruciatingly strict tax regime that significantly increased the cost of real estate transactions. However, now this has all changed and the real estate traders, investors, and end-users are again active in the market pumping the real estate transactions to new record volumes every day. In this season of property sector growth, the market has taken a lot of advantage from the new entrants. As per the real estate experts of Pakistan, the current real estate market has seen a massive influx of new investment in the sector from the 1st time investors. The real estate experts of the region add that this influx has been mainly triggered by the introduction of real estate reforms and tax relief packages that the incumbent government has introduced for the real estate and construction sector.
As a new investor in real estate, you will need to take care of a number of things before diving forward towards your first investment. For first-timers in the real estate industry, it is always recommended to start investing small amounts in housing societies before calling bigger and bolder shots in the real estate market. Here are a few reasons as to why, as a new real estate investor in Pakistan, you should opt for investing in private housing schemes rather than going for bigger shots:
- When investing in any market, it is a rule of thumb to start with less volatile segments. The private housing schemes are one such segment of Pakistan’s real estate market. As a new real estate investor, you should consider investing in the housing societies because it is less volatile as compared to other segments of the real estate sector of Pakistan. The housing societies pose a lesser risk to your investment when compared to other real estate genres in the market. For instance, if you are looking to invest in Islamabad, then you should consider a government regulator approved housing society such as the Capital Smart City Islamabad or Park View City Islamabad. Buying out plots in these societies will be more beneficial for you in terms of risk-taking.
- Another reason for going towards investing in housing societies than putting your money in big real estate projects is the amount of money required. Usually, you can book a plot in a housing society for a lower down payment than putting all your money together in one big project. For instance, if you are a new real estate investor in Islamabad, then you can start by investing in Blue World City Islamabad. The plot prices in this housing scheme are one of the lowest in the whole region. You can easily start your investment portfolio in Blue World City Islamabad by putting down 10% of advance payment with the rest of the installments spread over a period of 3.5 to 4 years. This will leave you with enough money to diversify your real estate portfolio by investing in other schemes.
- One of the key reasons that you should go for private housing schemes as your first investment option is to understand the demand for the housing sector in Pakistan. Pakistan is one of the most populous countries in the world and the urban centers of megacities are suffocating under the continuous population influx. The demand for housing, better yet affordable housing, will always remain in Pakistan because of the population expansion and the fact that most of the population is now slowly moving towards from lower middle class to middle class. Therefore, investing in housing societies is one of the most secure options when investing for the first time in real estate. For instance, you should see the classic case of Lahore. Lahore is a megacity of Pakistan. However, due to continuous population influx in the city from the rural area, the main city is unable to bear more population pressure. Therefore, people are opting to invest in societies like Lahore Smart City in suburban Lahore for investment purposes and to build their future homes.
- Investing in urban housing projects is recommended for new real estate investors because this sector will give them a lot of knowledge about the overall dynamics of the real estate sector of the country. For instance, if you invest in Park View City Islamabad, then at the time of selling your plot, you will come across all the paperwork and modalities that you have to complete before and during the transfer.