Best Commercial Property Investments in Pakistan | Graana.com Blog


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Commercial property is one of the most sought after investment opportunities in Pakistan. It is seen that the demand for commercial properties in Pakistan is increasing by many folds and for all the right reasons.

Being a developing country, Pakistan comes with a vast variety of avenues and business opportunities. Hence, it is safe to say that to conduct the business, commercial properties are crucial. In this blog, we bring you a guide about the best commercial property investment in Pakistan.

 To know all the ins and outs of commercial properties in Pakistan, keep on reading.

What is a commercial property?

According to Investopedia, commercial property is buildings and land intended for profit-generating activities rather than regular residential purposes.

why invest in commercial property

A common question prevails in the society: Is buying a commercial property a good investment?

Following are some of the prominent advantages of commercial properties.

Rental yield: Commercial properties give high rental yields, making them one of Pakistan’s most lucrative business ideas. Pakistan is a developing nation with a lot of growth opportunities and untapped market segements. Recently, the real estate industry has seen a boom in Pakistan. People are now turning towards industrialization, and demand for more commercial properties have increased significantly. 

Also, commercial properties are perfect for people looking for a side income because the rental yield of commercial property is high. You can easily earn a handsome income at home by investing in commercial property.

Tax benefits: commercial property comes with tax benefits as well. The current government has taken radical steps to support investors and people in business. In doing so, they have introduced many tax relaxation policies.

So, if you are interested in commercial properties, here is the good news for you. By investing in commercial properties, you will save a lot of money through tax reductions.

Ownership: Unlike other modes of business and investments, commercial properties come with full ownership. When you buy commercial property, you not only secure your hard-earned money, but you also get the ownership of a tangible asset. These kinds of perks are hardly available in other business opportunities in Pakistan.

Valuation: It is seen through historical data that the value of land appreciates over time. Hence, the risk and uncertainty in land investment are pretty low. For example, there are a lot of people who earned profits through their real estate properties. Many people purchased a property at a lesser price and sold it at a higher price because land’s value increased by many folds.

Inflation: Interestingly, real estate does not get affected significantly by inflation. Real estate, especially housing and shopping areas are basic necessities. Hence, their demand can never be zero. No matter how much the prices increase, people still need a place to stay and run business. Hence, it is safe to say that inflation has little to no effect on real estate.  

Types of commercial property investments: 

Commercial properties are very diverse and serve multiple purposes. If you are confused about what commercial property to invest in, go through these types and make a well informed decision.

Shops:

Shops are probably the most common type of commercial property in Pakistan. Every year a lot of people invest in shops and earn an excellent return on investment. Try to invest in shops that are located at prime locations such as famous shopping centres and malls. The rental yields gained from shops are good and act as a great source of income for investors and people who want to save their money in the long run.

offices: 

Pakistan is a developing country that is improving and developing at a very high pace. A lot of industrial areas and business hubs have been opened all across the country. The primary aim of these offices and smaller business centres is to attract customers and contribute to improving the economy of Pakistan.

Apartments: 

Another great option in commercial real estate in Pakistan is an apartment. Apartments are one the most common places to live in Pakistan. People prefer apartments because they are convenient and cheaper than bungalows and farmhouses.

Many housing societies in Pakistan offer one-bedroom apartments, two-bedroom apartments and three-bedroom apartments on instalment. 

If you are looking for a place to live in, we suggest you consider apartments located in areas with basic amenities and facilities. 

Best commercial property investments:

Graana.com offers state commercial art properties to its esteemed customers. These hot selling projects are located at prime locations in Pakistan. They offer good returns, straightforward terms and conditions and a chance to safeguard your money for the future.

Currently, the following commercial real estate projects are being offered by Graana.com.

Golf Floras:

The first real estate project that we want to talk about is Golf Floras. It is located at the prime location of  Bahria Town (Garden City) Islamabad. It is the biggest luxury residential complex in Islamabad. It is also one of the World’s Top 20 Luxury Resort Living, located at the Bahria Garden City on Golf Course. 

Golf Floras features a harmonious balance of 600 plus high-end condominiums, best-in-class amenities, and lush landscaping with glorious views of the mountains, making it the most desirable Resort Living Community in the twin cities. Golf Floras is an ideally located gated community that offers 24-hour security and maintenance, retail, recreational, educational, and health facilities making it the perfect place for residents to power their dreams and enjoy vibrant living.

Amazon Outlet Mall:

The next best commercial property investment in Pakistan is none other than Amazon Outlet Mall. The prices at AOM starts from as low as Rs.18 Lacs only and is located at main G.T Road, Islamabad.

Amazon Mall, Pakistan’s first themed Mall, will incorporate the fusion of fashion and architecture. It will be a one-stop destination for customers looking for designer brands and aim to make their shopping a delightful experience by providing the best indoor environment and facilities. The Mall will have a vast area reserved for recreation and leisure facilities such as restaurants, café, sauna, spa, gym, kids playing area, and a library.

Imarat Builders Mall:

Imarat Builders Mall is another epitome of state of the art design and architecture, located at the heart of Islamabad. The pricing starts from as low as Rs.17 Lacs only and offers safe & secure investment.

The Mall will connect the buyers with reputable builders. Builders Mall is designed to offer an ideal retail space to several brands allowing them to showcase various products. Builders Mall caters to a wide range of audiences ranging from construction businesses, project developers, interior designers, and the general public and delivers specialized equipment that meets their specific needs. Builders Mall will also cater to interior and exterior decor materials, exotic marble tiles, flooring, and wall designs. 

Mall Of Arabia:

It is one of the best commercial property investments in the twin cities. Mall of Arabia is the epitome of our Islamic heritage reflected in its Arabian architectural design. It is a celebration of our shared history, traditions, Islamic art, and architectural grandeur. The Mall also symbolizes the brotherly relationship Pakistan has with the Arab world.

Mall of Arabia is situated on the principal commercial and residential route known as Islamabad Expressway. The expressway seamlessly connects Islamabad city across its territorial limits from the Margallas to Rawat. Mall of Arabia sweeps across nearly 15 Kanals of prime real estate in one of the most dynamic areas of Islamabad. The Mall is located right in the middle of DHA and Bahria Town and accessible from Koral Chowk and T-Chowk, and PWD.

So, these are some of the best commercial property investments in Pakistan. These projects are perfect for people who want to grow their hard-earned money and gain financial freedom in the long run. If you cannot afford to pay a lumpsum, do not worry. There are a number of banks that provide commercial investment property loans.

If you have queries about the real estate projects mentioned in this blog, drop a message in the comments section below, and we will get back to you as soon as possible.

To know more about our latest listings, visit www.graana.com. We provide you with commercial property investment services. 

 




Under construction vs existing projects: Which one is better? | Graana.com Blog


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Are you someone who is looking for his next real estate investment?

If you want to safeguard your money, try investing in real estate projects because these projects come with multiple advantages. 

For example, you can use real estate projects in many ways. You can rent it out, you can use it to run businesses, you can rent out your property, you can lease out, you can even rent your spare rooms by listing them on sites like Airbnb. In short, real estate properties are a perfect investment opportunity in Pakistan and for all the right reasons.

However, now the main question arises.

Should you invest in an under-construction project or an existing project?

Both of these real estate projects come with their own set of pros and cons. 

In this blog, we take you through the strengths and weaknesses of both projects so that you can make a better and well-informed decision.

To know more about different kinds of projects and how they work, keep on reading.

Under construction projects:

Under construction, real estate projects are gaining popularity by leaps and bounds. These projects are perfect for people who are looking for a long-term investment opportunity in Pakistan.

Pros of under-construction projects:  

Following are some of the most common advantages of investing in an under-construction project:

Under construction projects are less expensive as compared to already established houses. For instance, many new housing societies in Pakistan are under construction. In new housing societies, apart from the house itself, the area where the under-construction projects are located also needs improvements in terms of their facilities and infrastructure. These factors lower the overall price of the project.

Under construction projects are more in demand as compared to already made projects. Old housing societies lose their popularity because they usually consist of old designs and fewer amenities. 

On the other hand, under-construction projects have high demand. Due to their increased demand, the returns are also high. Under construction projects come with a higher window period. There is a long time between buying time and delivery time. If you invest in a house that is closer to its possession period, the chances are that they will give you better returns. 

Under construction projects are usually purchased by people looking for avenues to invest their hard-earned money for the long term. Hence, it is safe to say that under-construction projects are ideal for people who want to invest in long-term investment opportunities in Pakistan.

Cons:

The under-construction projects have many benefits, but they have some disadvantages as well.

The risk ratio in the case of an under-construction process is higher than existing projects. There are many cases in Pakistan where the builders failed to deliver the product they promised their clients. There are many reasons for delayed delivery of projects, including funding crunch, frauds, scams, lack of raw material, labor strikes, legal complications, etc. All these factors delay the process, and in the end, the client has to suffer tremendously.

To keep yourself away from such instances, it is better to invest in properties approved by your area’s development authority. Verified projects will not only safeguard your hard-earned money but also generate good returns. 

One of the major drawbacks of an under-construction project is a discrepancy between the final product and the planned product. Usually, builders in Pakistan do not deliver what they promised their clients. Only a handful of companies ensure timely completion and possession of the product they promised their clients.

Purchasing an under-construction property will attract a tax incidence of five percent of the property’s total cost. In addition, stamp duty and registration charges will have to be paid separately, resulting in heavy expenditure on taxes. Affordable homes priced under Rs 45 lakh attract one percent GST of the total cost of the property. 

These expenses and duties add up and increase the financial burden on a person.

Like under-construction projects, existing projects come with their pros and cons.

 Pros:

Following are some of the most evident advantages of existing real estate projects in Pakistan.

Unlike under-construction projects, existing projects are readily available for moving in. There are no or minimal waiting hours associated with existing projects and the occupants can move in easily. In short, the developed projects have shorter window periods. 

For developed projects in Pakistan, you do not have to wait for months and years. It is all completed for you. Then, you have to pay its price, meet the legal requirements and move in. 

With existing projects, you do not have to be risky. When you invest in such projects, you get what you paid for. You can visualize the final project and make a decision accordingly. 

For example, when you invest in a shop located in an already established mall, you have a choice of visiting the property and examining its layout, features, facilities, and amenities. In these cases, you can make more informed decisions because the product is right in front of your eyes. 

The infrastructure of existing projects is usually well established. For instance, the existing projects are located in well-known housing societies in Pakistan. Therefore, they have good facilities, amenities, and features needed to live a good and peaceful life. These factors also increase the property value. 

Existing projects are usually used by people living for residential properties or places to start their business, such as business centers. Hence, it is safe to say that the intent behind getting an existing house is a personal need or preference.

Cons:

Existing projects also come with some limitations and drawbacks.

Ready-to-sell real estate projects in Pakistan are usually costly as compared to under-construction projects. The sellers typically charge a premium on the ready-made or existing real estate projects because of their demand. So, if you are someone who is on a budget, existing real estate projects might be costly for you.

Existing real estate projects come with moderate to low returns on investment. This is because the well-established houses or commercial buildings get old and depreciate over time. So, people prefer to invest in hot selling projects instead of investing their money into old projects that have matured over time. 

This factor reduces the return on investment, and hence, the investors get a lesser return on investment. 

There are additional costs associated with existing projects. For example, if you invest in an old property, you will have to pay for its renovation costs. Also, when you purchase an existing project, you have to pay for legal services that you will need to transfer the property under your name. All these costs add up and may cause you a financial burden.

So, these are some of the pros and cons associated with under-construction projects and existing projects. We hope this comparative blog will provide you with valuable insights and aid you in making well-informed decisions that will be fruitful for you in the future.

If you have any questions regarding the topic, please feel free to leave a message in the comment section below. Our team will get back to you as soon as possible.

 




Why you should invest in Apartments | Graana.com Blog


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Real estate is a fantastic portal for investment and people who are looking for ways to increase their capital growth. It is a vast industry with a lot to offer due to its higher flexibility rate and unlimited scope of employment opportunities and strategies.

One can generate income just by flipping houses, multiple property investments, rental spaces, or any other industrial property. Create a portfolio of assets to secure your now and future.

The apartment’s investment is by far one of the best options for investors who want an additional source of income that also offers a slow yet steady appreciation in the value of their portfolio.

Making money from investing in apartments will give you unparalleled value over any other real estate options.

Experts believe that an increase in the need for apartments will only rise with the coming years and rapid urbanization. High-rise developments in Pakistan have become the new trend among millennials, making it a lucrative avenue for those who are seeking massive capital gains.

Precisely 15% of the residential projects that have been recently launched in the major cities are offering plots for sale. In contrast, 85% are high-end apartments.

Instead of putting all your eggs into one basket, let’s first discover the importance of why one must invest in apartments.

A stream of income to depend on

Property investments will undoubtedly offer you a regular stream of flowing income to depend on for the long term. An income that can comparatively have a higher percentage than stock yield. Property investment is bound to give you a much higher ROI over the years. Before investing, you need to take into account that it’s about the long-term investment.

Generational wealth return depends on the following factors:

Luxurious features such as 24/7 gated security, valet parking service, fitness centers, pool, elevators, rooftop restaurants, fire safety, and emergency systems, walking trails, etc. everything in one place has made apartment projects all the more attractive for renters and buyers.

Physical Asset

Unlike the stock market, real estate is one of the very few industries that will provide you with a meaningful physical asset. Every land you will buy or invest in along its structure will have a value that attains all your wealth. The income that your property can produce will also have value for future realtors. There is no red or green signal in this domain.

Fact: “According to the Forbes 400 index, 90% of the world’s wealthiest people have made or retained their wealth through high-quality, income-producing real estate, like apartment communities. The ultra-wealthy hold real estate long term because they know that is how to preserve their wealth.”

Value appreciation of an asset

The value of an apartment increases if the net operating income of the property keeps on improving as well with the means of rent increase and effective management of the land.

Keeping your property up to the market trends and standards is equally important in the real estate business. This is one of the top tips to increase the value of any asset, be it an apartment or a house.

A fact that is well known and established that apartments are much easier to maintain and upkeep. Unlike a house, all the amenities and complexities such as repairing leaking pipes, burnt wiring, water damage, or seepage are handled by the apartment management so that you do not have to put yourself under the stress of fixing these inevitable issues.

  • Confused if you should invest in apartments or houses?

Consider this, would you rather acquire and manage apartment units or invest in multiple-family homes?

The latter option must be more appealing to you; as said before, having not to deal with so many investors, conducting inspections, and going over so many locations would definitely be better to find the right marketing tools and networking strategies that are absolutely necessary for successful apartment investment.

To further your cause and decision, the demand for plots has also been decreased over the past two years.

The sale factor of apartments is one of the biggest reasons why buying an apartment unit is a good investment in not only Pakistan but anywhere in the world.

The increased demand for high-rise buildings has made it much easier to sell apartments, especially if the location is popular or hyped.

Most of the luxury apartments that are marketed are built outside the busy environment of the city. However, there are still many well-maintained and well-connected residential and commercial apartments spread throughout the city for you to find and invest in. It entirely depends on your needs and preferences. Remember that the value and appreciation of the apartment rely highly on the location and maintenance. An increase in the rent will ultimately have an impact on your favor.

Conclusion

The government of Imran Khan has been taking working to ease the entire procedure and requirements for home loan procurement to incentivize and develop its vision of vertical cities. 5% of the total lending for housing finance has been advised for the commercial banks. On the contrary, the State Bank of Pakistan has brought a special course of action to boost construction financing for developers.

The government has also been working towards emerging a mortgage finance market in the real estate industry of Pakistan. Tax on bank income generated from low-cost housing finance has been decreased from 39% to 20%. This rule is endorsed to be able to provide mortgage and home loans to the middle and lower-income groups of the country.

If you are in search of drawing a powerful connection of wealth, then an opportunity is already waiting for you with a proven record and long-term formula to help you succeed the most. And most importantly, just with the right real-estate knowledge, anyone can excel at this and create phenomenal wealth for future and family goals in the long run.

With guts, information, and courage, we surely believe that anyone can achieve the solo struggle of getting the deals done. Although, if you intend to invest alone without any outside help, then be sure to have in foresight the right execution plan.

However, having a trustworthy, experienced realtor can add up to a drastic help in your investment journey, which often gets gruesome for many people.

One good deal is all it takes. Reach out to Graana.com to get more information and insight. To be able to produce generational wealth, get the right team, and make your financial life more manageable.