Property dealing: Real estate investments promise high returns

Despite slump, trade with India will boost sector.


Shahram Haq May 01, 2014
The real estate sector offers small scale industrialist a safe haven to invest their funds. Illustration: JAMAL KHURSHID.

LAHORE:


If you want to find a way to make money, the real estate sector is probably your best bet. Experts say that a few basic pointers regarding the sector can yield a high return for the average investor.


In Pakistan with a high degree of lawlessness and deteriorating energy crisis, the real estate sector offers small scale industrialist a safe haven to invest their funds. The often large scale spending and technical knowledge of experienced industrialist generates greater profits.

The stagnation of the last six months, however, raises some questions. Lahore’s real estate market, which has seen price hikes of more than 100% in many areas, is a case in point. According to zameen.com, an online portal, the real estate market in Lahore has witnessed an average drop of 3.5% in the first quarter of 2014.

On the other hand, the housing sector in Lahore has posted an average price growth of 4% in the first quarter of 2014, according to the same portal.

Real estate experts share the perspective that prices have reached a level where small and large scale investors are reluctant to take risks. People are eagerly waiting for some positive news that would have the potential to further trigger prices upwards or are awaiting new projects by reliable developers.

However, this is not to imply that transactions are not taking place in the market; people who belong to this sector are managing to sustain themselves. The number of investors has increased to such an extent that each dip in any profitable area or housing society of Lahore is seen by investors as a chance to redeem their profits.

‘Trade with India would be beneficial’

Meanwhile, a real estate expert said that trade with India is expected to be the much-needed the sector so badly requires.

“Many industrialists have already purchased agriculture land in bulk as part of their future strategic investments to utilise the land for commercial purposes, once issues related with Pak-India trade are resolved,” he added.

The benefits of increased trade can also be seen by other members in the sector. The period of dormancy has stabilised the abnormal prices of plots in various societies.

Published in The Express Tribune, May 2nd, 2014.

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