Real estate investments come in all types and if you know what you're looking for, you can earn quite a bit of profit given the right opportunity.
Planning to venture into real estate can be challenging and you would need to make sure that you know the different types of real estate currently in Pakistan to make sure that you thoroughly weigh out your risk to reward scenario.
Having industry knowledge and knowing what you are investing in will help make sure that you don't just know the right property for your requirements but also properly mitigating risks.
Pakistan is a country that has immense untapped potential in the real estate sector so much so that real estate is one of the best performing industries of Pakistan. Resources and land leave room for all kinds of development and thus all kinds of investment opportunities.
If you're looking to invest, the different types of real estate properties in Pakistan are currently Residential Property, Commercial Property, Industrial property, Agricultural Property, and State-owned property.
Knowing what type of real estate you want to invest in is crucial, however, in our guide, we target the most basic terminologies. If you're a novice looking to invest your money in the real estate sector then perhaps it's best to start with defining the basics.
What is real estate:Real estate can involve land or anything related to a structure on land. Often with real estate, there are lengthy ownership laws. Laws are defined by geographical and government decisions thus, each country has laws that govern the use of the property including buying and selling of the real estate as products.
To be part of the real estate market you would have to operate in the market by either buying, selling, or owning properties. With that said, to specify a real estate definition is too far-fetched. The parameters defining this unstable market are still mere blurred lines. Now that that’s out of the way let’s dive into the many different types of real estate in Pakistan:
Residential Properties:This category is probably the most popular in terms of real estate. It doesn’t take a genius to know but residential real estate refers to anything that has to do with residential accommodation.
Buying, selling, and renting properties is part of this process and if you’re an active investor then you probably already have your hands in the Real estate investment pool. Homeownership is one of the most important factors in determining economic stability in Pakistan.
This is an asset that proves to be a long-term investment in Pakistan rendering much-needed financial stability amidst the unstable economic conditions.
Types of Residential Properties:The residential market of Pakistan is a complex one and if you are looking to buy into it then you should probably start with jotting down these sub-categories:
Apartment Buildings:Apartment Buildings are normally referred to as flats in common terms, Like Pearl Square at Bahria Lifestyle, these are multi-family complexes normally owned by multiple owners.
In the major cities of Pakistan, you will be able to spot apartment complexes as some of the highest-rising buildings in the area. Most people who prefer residential real estate for sale or rent tend to flock towards vertical units since this category of residential real estate offers easy management, lack of risks, maintenance, and lack of competition.
The downside of these investments is that starting up a project of apartment complexes usually requires heavy investments and a good amount of expertise.
Vacation Homes:Vacation homes are yet another category of homes in Pakistan. A lot of these homes are situated on the Hill stations of Pakistan. Recent years have shown a couple of interesting projects that have sprung up offering opportunities for both investors and environment-enthusiasts.
If that sparks your interest then check out Pine hills amidst the beautiful Makhniyal Forests at the serene location of Pir Sohawa. Secondary homes or vacation homes are not used throughout the year and are often only used for holiday or recreational purposes.
Homes:Homes are quite different from apartments or flats, investing in homes often requires a larger investment as compared to apartment buildings.
The benefits of owning a home include the fact that you will have a private property and the ownership will be undisputedly yours. You will be able to make changes according to your personal preference as well.
Commercial Properties:Another type of real estate in Pakistan is the commercial sector, these are real estate units that are restricted to income generation. They normally consist of a wider sub-category of the different types of commercial real estate. Some of the most popular types of commercial real estate are: ·
- Department Stores/Shops
- Motels, hotels, and resorts
- Recreational areas like Cinemas
- Private Parking areas and more
Industrial Properties:This is the type of real estate property that is primarily used for manufacturing purposes. A property that is primarily used for manufacturing, producing, packing, and storing purposes.
Many of the Industrial properties are also used for research and distribution of goods and many of these properties can also co-exist with agricultural properties. Industrial properties are also used for income generation purposes thus they are often considered a subdivision of commercial properties.
The distinction in these properties is primarily due to differences in the zoning laws, sales, operation, and construction permits. Industrial properties can be categorized as both lands and Buildings.
As for the types of Industrial real estate:
Power plants: Categories that are more or less like factories however they are used for electricity generation or for treating water for purification purposes.
Factories: This is the kind of manufacturing unit that comprises a building, manufacturing equipment, machinery that is used for the production of goods for common and special use.
Warehouses: This is the kind of facility that is used for storage purposes mainly, it is used by exporters, importers, wholesalers to store goods for a longer period of time. In Pakistan, this is a popular type of real estate for investments.
Agricultural Properties:Pakistan is primarily an agricultural country which means that agricultural lands are a very important part of commercial property. However, properly categorizing agricultural lands as commercial properties is not accurate legally and for the buying and selling of properties.
These agricultural properties are used for planting crops and raising cattle. Like any other property, this is the kind of property that can be bought, sold, or rented. If you are unaware of how to invest in real estate then you should know that this kind of property reflects a diverse effect on the property portfolio.
As for the types of agricultural real estate, there is the ranch which is a land that is used for the raising of livestock, cultivation farms can be used to cultivate crops in vacant farms, forests can be used for recreation purposes or for providing essentials like wood, and not too different is the orchard. These are the kinds of lands that can be used for planting fruits, etc.
State-owned properties:State-owned properties are a popular type among the different types of properties. The most common types of state-owned properties are cemeteries and properties used for religious use, libraries, government buildings, properties for sale, and more.
Conclusion:This concludes our picks of the basic types of real estate in Pakistan. Property investors in Pakistan have a wide spectrum to choose from and diversify their property portfolio.
Real estate is a field that offers risks and rewards depending on how much you know your genre of investment. You may make a mighty profit out of it and if you don’t it is better to consult a reliable real estate agent for advice.