Do you know that multi-propose real estate investment is the most lucrative business in Pakistan? It accounts for 2% of the total GDP of the country. Pakistanis spend around $5.2 billion on real estate construction yearly, that’s a huge number. In 2017 real estate and construction industry increased by 9%, which indicates its strength and potential for investments.
Recently multi-propose real estate is an emerging industry in twin cities. A sudden and rapid increment in the property rates of Islamabad has been seen for over a decade. The following factors played a crucial role in the greater demand for real estate investment.
- Strategic location
- Rapid growing housing societies
- Massive upcoming commercial projects
- Available for accommodation
- Hub for new projects and expansions
Islamabad has a lot of scope for commercial real estate investment. Meanwhile, new and unique projects are being introduced in this region, especially in zone 5. To cater to the needs of the population residing in the Twin Cities. Real Estate Investors are interested in both, multi-propose real estate properties. Each of them has its pros and cons. Among these two, commercial properties have proven to be more fruitful, and here are all the right reasons why:
High Return On Property
The major benefit of investing in commercial property is that they yield high returns. If you are the owner of a commercial property located at some business center, its demand will be really high. The cost of commercial properties increases every now and then. If you buy a commercial property at the right time and in the right place, hold onto it for 5 to 10 years and rent it out to cover maintenance costs and taxes. By the end of this period, you can sell it for far more than what you bought it for.
Solely For Real Property
Most of the investors buy commercial property as they are acquired for business and investments. They rent properties like offices and shops just to earn monthly income. If the real estate market is going well in your region, you can rent out space at a very good price. On the other hand, residential property is treated more as a necessity than an investment or business avenue.
LOW MAINTENANCE COST
The standard of commercial real estate is that the tenants are usually responsible for extra maintenance and repairs expenses, as they cannot accommodate any loss for the business. The commercial property owner can draft a contract that puts liability on the tenants to pay expenses of the maintenance before leasing the property. This allows the owner to be free from all the extra expenditures.
LONGER CASH FLOW
Commercial properties have a longer lease period. There is a guarantee of a longer cash flow period. The value and price of the commercial property depend on the legal documents and by the rent decided in the presence of a lawyer. The agreed rent is an essential part of commercial plots. As when it comes to unpaid rents. The landlord reserves the right to penalize the tenant resulting in immediate eviction, agreed over the lease document.
As the offices barely change their location and stay at the same place for months, the owner can count on finding reliable tenants with long-term leases. In contrast, the tenants of residential property can leave suddenly.
The major feature determining the value of the commercial property is its location. The more busy the location, the more valuable it will be. They are willing to pay more than the residential tenants as the properties are more valuable and located at the central locations.
FAST CONSTRUCTION PASE
Time is money when it comes to the construction of the building. The owners want to complete the project as quickly as possible. Commercial projects immediately have higher construction costs and an organized workflow. So they tend to move precipitously.
Crescent Lake Tower – Profitable Multi-Purpose Real Estate Investments Project
The unique concepts and innovative approaches of the Gran Exito group are one of the leading companies in the multi-propose real estate industry. Over the two years, they have launched the massive project, Crescent Lake Tower. They are remarkable projects with high returns, great annual profit, no recession. This tower promises transparent and secure investment. Because they also offer an easy and transparent 4-year payment plan.