In the last two decades, the real estate and construction sector in Pakistan has evolved exponentially. Today, one can even obtain relevant construction supplies and review properties online. The digitalization of this sector has proved to be great for the national economy as well. One can even say that it is one of the largest revenue generators of Pakistan. Considering its impact and value, it can be considered a worthy field for investment. However, one must begin to understand the different property types in Pakistan before investing. In this blog, we will be discussing some of the biggest advantages and disadvantages of each property type in Pakistan.
1- Vacant Land/Plot
This is the simplest form of real estate in Pakistan. A vacant piece of land that comes with ownership of other elements in its area. Like trees, grass, a little field. The location of the land determines the rules of construction or possible future facilities.
– Direct Ownership
– One can build using materials of their choice
– Liberty to customize the construction and architecture
– Zoning Taxes and Regulations
– Time-consuming construction process
– Lesser chances of negotiation
2- Residential Property
Residential properties contain a variety of real estate used specifically for residential activities. From houses to flats and bungalows, all such locations fall under this category. Al-Noor Orchard is a very clear example of such real estate. It is among the most popular property types in Pakistan
– Higher chances of negotiation in terms of price
– The main foundations are already built
– Less exhausting than building a house
– Lower opportunities to modify
– Limited maintenance options
– Can prove to be expensive
3- Industrial Property
As the name suggests, industrial properties are used to perform industrial activities such as export, storage, manufacturing etc. They are linked to commercial properties as they mostly contain facilities like factories, power plants and warehouses etc.
– Great income and revenue generation
– Can be used as a store-front or business franchise too
– Amazing local business potential
– Needs a significant amount of workforce
– Takes time to establish
– Vulnerable to industrial hazards
4- Agricultural Property
Locations like orchards and farms fall under this label. Pakistan’s agricultural sector is particularly strong. Hence, fertile lands are often in demand
– One can raise livestock and crops in such areas
– Low depreciation cost
– Amazing return on investment
– Converting and grooming takes time
– Hard to maintain without adequate knowledge
– Demands constant care and attention
5- Commercial Property
They are among the most sought-after out of all property types in Pakistan. Offices, stores, malls, restaurants, recreational spots, all fall under this category. One can use Al-Noor Orchard as an example of commercial property as well. They start out as plots, built houses, or even buildings.
– Great business potential
– Basic facilities like shopping, education, and healthcare are in close proximity
– Allows you to build relationships with relevant businesses
– Requires a lot of monetary investment
– Hard to maintain and repair
– Its success depends on the local economy
6- Mixed Purpose Property
Mixed Purpose properties are a combination of two real estates. For example, it can be used both as a house and a retail store. Its ability to serve more than one purpose makes it an appealing resource.
– Contain modern facilities and architecture
– They provide a secure environment driven by a sense of community
– Are studded with countless nearby and indoor services
– High-priced because of all the advanced features and services
– Higher chances of conflicts between residential and commercial owners
– Commercial tenants are unable to attract customers from outside the community
All the property types in Pakistan come with their own pros and cons. One must carefully review several factors before investing in real estate. If carefully chosen, real estate can generate a significant amount of profit for the investor.
Are you looking to buy a property in Pakistan? Contact the biggest name in the game today! We, at the A-team strive to provide you with the best possible real estate options in your budget.