What is a Real Estate business?
It is a business where the deals of buying and selling of property occurred. A group of people is required to start this business. Experts like civil engineers, architecture and licensed directors, and other personnel are needed to carry out the activities.
This business never gets old because the demand for construction is always in need. Different countries have different rules and regulations.
Pakistan also has great demand for this business and the industry has importance as it has a high share of GDP.
People who are involved in the activities of dealing selling and buying properties are known as real estate agents and sometimes known as property dealers.
What is the Purpose of Real Estate?
Real estate can have different purposes like residential, commercial, or even industrial purposes that include land resources (water or other minerals).
Investment in real estate is the most valuable thing a person got and the value of real estate can increase the health of the economy.
Profits of Real Estate in Pakistan
The overseas Pakistani and local citizens are investing in this sector which is fruitful for the success of the industry.
Investments in this industry are always appreciated because of the profits and benefits they can get to an investor.
Future of Real Estate in Pakistan
The prices are expected to get high because the demand is increasing day by day. Lower interest rates and mortgage rates are also the reason that attracts people to invest in this industry.
Is Real Estate a Suitable Career in Pakistan?
It is one of the most high-paid businesses you can have in Pakistan. It is even more beneficial when you have a better understanding of it. Having it as a career can be very demanding and you can earn big profits as well.
Is there a loss in Real Estate?
The pandemic as it impacts every industry also has an impact on this industry as well. It has been stated that the loss of one lakh crore is to bear by this industry.
What are the Advantages of Real Estate?
The steady return on investment is one of the biggest advantages that is why people like to invest in this business. The amount you can get as rental income is a huge benefit in this business and it is more than enough to attract any investor.
There are a lot of rental properties in Pakistan from where you can generate sufficient income.
Most people believe that this is not a short-term business. But the fact is that the value of property increase every day and you can sell and make a profit whenever you want. The monthly income is also the way for short-term returns.
What is the disadvantage of Real Estate?
No doubt there are various advantages of this business but we should also keep in mind the risks that can be involved in this business.
Some of the risks involved are wrong locations, problem tenants, high vacancies, and negative cash flows. Some of the other risks besides these are low liquidity, unpredictable market, and structural issues.
Is Real Estate a low-risk investment?
This investment you made is a tangible asset investment which is a meager-risk investment. There is a variety of different options where you can invest rather than invest money in property than fixing, maintaining, and managing it.
Scope of Real Estate Business in Pakistan
In every country the real estate industry has its importance however in Pakistan it has made its special place in the market in past years. The scope of the business is elaborate in the following points:
The increasing need
The scope of real estate is high in Pakistan. Other sectors of Pakistan are related to or dependent on this sector. The growth of this industry is dependent on the various factors that are linked to this industry.
The money spent
The projects of real estate development are usually spent billions of amount per year. There is high monetary worth that this industry is holding for Pakistan as it is described that it has 300 dollars to 500 dollars’ worth.
PSB Analysis
The report of PSB (Pakistan bureau of statistics) shows that the construction industry has a 2% share of the overall GDP of the country.
Urbanization needs
As Pakistan is a developing country so the expansion of the real estate industry is most needed. The basic goal should be to boost every sector that is making it part of the growth of Pakistan’s economy.
Legal checks
The companies who are working in this industry make sure that the property that is dealing with them should deal with them in all legal ways. This is checked by the upper authorities like development authorities of the relevant areas.
Helping residents
The industry has many companies working in this field. They are making sure they help the residents to get the home they needed.
Consultants not only give their best advice to the buyers but they are also making the payment methods easy so that everyone can make payments easily.
The development of the country
The real estate industry is getting the full support of the country. The rapid development in this field is making a country more urbanized which eventually leads to an increase in tourism.
Economic development
Investors greatly benefited
The investors who invest in the rental properties are already making a good profit by giving their properties for rent.
They are also getting profit when they sell out the properties they bought and they sell them when prices are high which makes them have all the profit.
And in this way, they are having a good amount of money without much work or effort involved in it.
Stabled cash flows
The other benefit that this industry is giving to the investor is the cash flows are pretty stable. These are some of the benefits of this real estate business.
You may get many more advantages that can depend on the kind of real estate business you want to do and the timings also matter a lot.
For example, at the time of COVID, this business flourished to its fullest in Islamabad and Lahore especially.
Final Thoughts
From the above discussion, it is now very clear that real estate has great importance in various ways.
This business is never getting stopped and it is never going to be trendy because development and urbanization are unstoppable, especially in developing countries like Pakistan.
The demand is also not going to decrease because, in the end, everyone wants to have a home to live in.
The return you get on this investment is one of the things that cannot ignore by the investors. To have success in the commercial areas as well you need to take a decision very carefully after gaining full knowledge about the market.
Some of the significant factors to look upon while investing are the location of the property, the price of the property, the income you get, why you are investing here, the taxes, the laws of the area, and last but not least the way of financing.
With a deep and clear understanding of all these factors, the investor can make a good profit with no doubt and the risks are low as well.
