Real Estate business in Pakistan is one of the biggest growing sectors of the Pakistani economy since the beginning of 2023 and it is still growing at a steady pace. This growth is due to tax cuts for building schemes and amnesties from the FBR.
Since so many people wanted to turn their black money into white through these schemes, so much money was put into the real estate sector all over the country. The unpredictability of the real estate business, and the huge profits.
Many Pakistanis want to work in this profession, but they are not able to because of lack of information. You should take a strategic step and enter this market because this business requires your investment. In this article, we will discuss real estate investment in Pakistan and investment ideas in Pakistan.
What is Real Estate Business?
Real estate business refers to the buying, selling, renting, or leasing of properties, including land, buildings, and any other immovable assets. It is a field that involves various activities related to properties and land, with the primary objective of making a profit. Real estate can be classified into residential, commercial, industrial, and agricultural sectors, each with its own unique characteristics and purposes.
Many people think that working in real estate means buying and selling property which is not entirely accurate. Real estate in Pakistan is a large scale industry, which includes buying and selling of commercial and residential land/buildings. The industry also includes real estate services such as property management and development, brokerage, property management, real estate marketing, and so on.
Future of Real Estate Business
The future of the real estate sector in Pakistan has always been bright because the big businessmen have been in the field for decades. That is why this sector offers incentives and protections to those who want to start a real estate business in Pakistan.
Although the economic conditions of Pakistan are bad at the moment, Pakistan is following the dictates of the IMF to avail the loan. But Pakistan has an informal and monetary economy and hence people have plenty of money to invest in real estate.
Moreover, a large number of Pakistanis live abroad and send millions of dollars a month on remittances. Therefore, the first dream of Pakistanis living abroad is to buy their own house in Pakistan whenever they have good money.
State Bank of Pakistan (SBP) stated that the country still faces a shortage of 12 housing units. So, the real estate business field in Pakistan never ends.
Tips to Start Real Estate Business in Pakistan
As you know now, there are numerous real estate business ideas in Pakistan, and starting all at once is not a wise decision. Let’s start with tips to start and grow property business in Pakistan:
- Develop a suitable strategy
- Location for Deals
- Create a real estate website
- Market Research
- Using social media
- Utilize new technologies.
- Hire a Real Estate Assistant
1. Develop a Suitable Strategy
As we said earlier, the real estate industry is extensive and as a beginner, it is not wise to start all at once. Before launching your own real estate agency, decide what type of real estate you would like to work in and learn the basics of how to start a real business in your chosen field.
Real estate marketing is a popular choice these days, but it’s not everyone’s cup of tea. Decide whether you want to start as a real estate sales and marketing agency or offer property management services.
Many people feel comfortable managing rental property rather than selling, while many more are comfortable with the exact opposite. Make sure you choose a field in which you feel interested and have good knowledge.
2. Location for Deals
The location of your investment real estate is the most important factor that will determine the success or failure of the investment. Moreover, the investor needs to consider the prospects of his investment location. And then make the decision based on the future development of the area.
Moreover, if the location of the investment is not ideal, it will not provide an early return on the investment.
A budget is crucial when investing in real estate. Before investing in real estate, an investor needs to consider his budget. Moreover, the investor needs to invest a certain percentage of his investment in the business and save a certain amount for a rainy day. In the case of full capital investment there is a chance that the investor will have to withdraw his money before he gets a great return on investment.
4. Create a Real Estate Website
Having an online presence has become essential for the real estate industry. As you have observed, these days there are countless real estate websites in Pakistan. Real estate websites allow you to maximize your reach to target clients, strategically execute marketing and sales campaigns, and make calls more likely to be successful.
5. Market Research
Market research is the most important factor that will determine investment success. Moreover, it is very important to investigate about the area, location, developers and past record of the scheme. Moreover, there are many well-known names in the real estate sector like Nova City Peshawar where you can invest.
6. Using Social Media
A presence on various social media platforms is as important as building a real estate website for a property business. According to statistics, around 2.8 billion people use different social media platforms, and it is hard to ignore them as marketing platforms.
Due to the rapid increase in the use of social media, many people have turned to digital marketing and are running promotional campaigns on social media channels. In order to grow real estate ventures, it is important to be active on various social networks.
7. Utilize New Technologies
Technology has upgraded personal and professional life, and every aspect is affected. The real estate industry is equipped with many new technologies that could never have been imagined decades ago.
In order to stay relevant and successful, the property industry must not hesitate to adopt new technologies. Virtual tours, Metaverse, etc., are changing the shape of the real estate industry, and they can give you an edge over the competition.
8. Hire a Real Estate Assistant
Real estate is a vast business, and it is quite difficult to manage alone. Hiring a full team can be difficult when starting a new business, but a support staff is one of those staff members that must be hired to keep the company running smoothly.
If you can’t afford to hire a full-time assistant, hire an hourly virtual assistant and get the job done completely.
Ways of Making Money in Real Estate 2023
Real estate is an excellent opportunity for those who want to protect and grow their hard earned money. Real estate investors can also enjoy good pay. This section will also help you understand how to start and grow a real estate business.
Below are some ways you can make money in real estate by following.
1. Real Estate Appreciation
In real estate, appreciation is the phenomenon when your property’s value increases over time. One of the easiest ways to make money in real estate is by selling a property.
In Pakistani real estate market, demand for real estate is increasing rapidly. As a result, the selling prices of real estate also increase. In short, you can demand a high selling price for your real estate product and thereby handsome profit.
Appreciation occurs when a property’s value increases due to changes in the real estate market. For example, many people repair their homes. They add new features to their home, which, in turn, increases their overall property value.
However, it should be kept in mind that property appreciation is difficult, and one cannot accurately predict the rate of appreciation.
2. Cash Flow Income
Everyone involved in real estate must know how to invest in real estate. Cash flow income in real estate is generated when you buy a real estate property and manage it for money. You then collect the cash from the rent from the tenant. A rental property investment is an excellent source of passive income.
Cash flow income can come from other types of real estate besides apartment buildings, such as storage units, office or retail establishments, and rental properties. You can even rent your agricultural land and generate a higher income.
3. Real Estate-Related Income
This stream of income is standard among real estate industry professionals, such as brokers and real estate investors.
A significant portion of the money is earned from commissions on the properties that have helped a client buy or sell in relation to this income. In addition, many real estate management companies are required to keep a portion of the rent to manage the operation.
Last but not least is the secondary real estate investment income. It is considered to be one of the most practiced real estate categories and known for the huge source of profits that come with it. Ancillary income from real estate investments includes vending machines in office buildings or laundry rooms in rental apartments.
4. Real Estate Promotions
Real estate promotion is an opportunity that will not cost you any money. Yes, you heard right, you can make money in real estate with no investment required. You can get exceptional benefits from new residential projects in Pakistan by advertising payment plans, locations, various lot sizes and investment opportunities.
People work on various promotional projects for the communities besides their jobs and other businesses. Communities allow them to promote their residential and commercial lots using their social media platforms. You will not believe, but people are earning a lot of money in real estate in Pakistan in 2023.
5. Become A Real Estate Agent
Real estate agents are essential to the real estate industry, and they usually earn more money than those working for a reliable company in Pakistan. Real estate agents provide support to both buyers and sellers while dealing in real estate.
It will be a good decision to become a real estate agent. Real estate agents only provide their services and earn a lot of money depending on the area and location.
Real estate agents are needed everywhere in Pakistan. A real estate company employs real estate agents to obtain services as the best real estate service providers by offering 2-5% of the total amount.
Ways to Invest in Real Estate in Pakistan 2023
The property sector has always attracted the interest of many in Pakistan. However, working with it is not a simple story of buying a plot or house and selling it at a higher price.
To succeed in trading and reap great rewards, you need to know the basics of real estate investment in Pakistan. They include a lot of smart considerations and financial information.
Here is a simple guide on how to invest in real estate in Pakistan and make the best use of your capital for maximum returns.
1. Buying Files
A file is basically a future plot in a society without any allotment or occupancy. These documents are issued prior to the development of an area and are preferred among long-term investors.
Once a file is formally associated with a developed plot, its rates increase significantly. This means that the return on investment can be quite high at this stage.
2. Buying Plots
This is one of the most common types of investment activities in the real estate sector of Pakistan. Basically, it involves investors buying plots and holding onto them until their value rises. With the passage of time and further development of the project.
Overall, this project can be very profitable. And by following this, you will never need to answer the question ‘Why invest in real estate?’. Your Profits Will Speak For Itself!
3. Property to Rent
Buying and leasing a house, apartment, or commercial property is an ‘income-producing’ type of property investment. You remain the owner of the property and get a steady return on investment through rental income.
4. Buying Open Land for Development
This is one of the less common and risky types of property investment in Pakistan. This includes buying open and undeveloped land that is not owned by a society. Investors who take this approach expect that a developer will buy land from them at higher prices to set up the project.
Benefits of Investing in the Real Estate Sector
One of the safest and most reliable business opportunities in Pakistan is real estate investment which brings long term profit. Investing in real estate is the safest option that can double your investment anywhere in the world, not just in Pakistan. Other than security, there are many other factors that can encourage investors to make investments. In the real estate sector, there are many diversified investment opportunities spread over a wide area.
The real estate business is always profitable for you because the population is increasing and more people are moving into new homes. On the other hand, there are many residential communities that are about to take off and some are currently under construction. Therefore, real estate is a growing business in the world, especially in Pakistan. If you intend to start a business in the real estate sector in Pakistan in 2023, you can choose from the options mentioned above.
In conclusion, the real estate industry in Pakistan presents numerous business opportunities with the potential for substantial profits. With a robust consumer market and growing housing projects, the sector has become a preferred choice for investment among aspiring millionaires and seasoned investors alike.
The top real estate business ideas in Pakistan for 2023 include becoming a landlord, starting a real estate firm, property management, real estate promotions, and becoming a real estate agent. Each of these options offers unique advantages and varying levels of risk and investment requirements. Investors must carefully consider factors such as location, financial constraints, infrastructure, and potential returns before committing to any venture.
Moreover, real estate firms like Makaan Solutions play a pivotal role in assisting investors with their ventures and promoting societies for substantial profits. These firms offer professional guidance and expertise to both local and overseas investors, contributing to the growth of Pakistan’s real estate market and economy.
The real estate business is considered a safe and secure investment option in Pakistan, offering long-term profitability and stability. As the population grows and new housing projects emerge, the demand for real estate continues to rise. This ever-growing market ensures a promising future for those entering the real estate sector.
To start a successful real estate business in Pakistan, prospective entrepreneurs should conduct extensive research, analyze past housing projects, establish their finances, create effective marketing and business strategies, and build a strong network of support.