Are you an investor in Lahore and looking for property investment in Lahore? If yes then it is time to congratulate you! Lahore, the most populous city of Pakistan, has a lot to offer to its residents and visitors alike. As the country’s cultural capital and largest city, Lahore offers some of the best food, entertainment, nightlife, and more. The city is witnessing a boom in construction, renovation, and rehabilitation projects. It all adds up new multi-story buildings on a daily basis. The rush is all due to real estate investors who are taking advantage of the low rents in Pakistan’s second-largest city and generating business in value-adding property.
Property Investment in Lahore Has Always Been a Lucrative Business Opportunity
Real estate in Pakistan has always been a lucrative business. Driven by the desire to own a house, many people make investments in property. Mostly with the intention to reap the benefits later. With this trend in mind, many people have started investing in plots as well.
While some buy these plots or a house for sale for their future residence purposes. Many others are buying them as a long-term investment opportunity. More and more investors are taking part in property investment in Lahore for profitable returns.
However, not all investors invest sensibly in the property. If you want to invest in properties in Lahore, here’s what you need to know:
Investors are Buying Plots for Future Resale:
Whether it’s a residential plot or a commercial plot, every piece of land has become a hot asset. That promises high returns when sold in the future. Due to this reason, investors from within and outside of Pakistan are looking for opportunities. To buy plots at a cheap price and sell them at an inflated price when the value increases over time.
The value of land never goes down. When you have an opportunity to purchase land at a reasonable price, you should go for it. The prices of plots in Lahore have risen over the last few years. It is because people are investing in plots that they intend to sell in the future.
According to real estate agencies, investors are making good profits from selling their plots after a few years when the prices soared up. This means your investment today at reasonable rates will generate good money in the future. Whenever you decide to sell your plot in the future.
New Projects are Launching in Lahore
As the real estate industry is growing rapidly, investment opportunities are also increasing for investors. According to a recent survey, more than 25% of Pakistan’s total working population is employed in this industry. Due to the increasing demand for housing units and commercial spaces in Lahore, new projects are being launched with residential and commercial plots available for sale or possession. These projects vary from small 3 Marla plots to 1 Kanal and 2 Kanal residential plots or sometimes a house for sale at easy monthly installments. These 3-5 years installments help specifically helping our middle-class working people to get the ownership of their own house within 3 to 5 years.
It was back in 2018 when the real estate sector was affected by inflation. The developers and investors started facing a lot of problems due to which they had to halt their projects. The projects which were already launched had to face a lot of problems, and they also had to delay their completion dates. Even the buyers were not willing to invest in the property in Lahore because they thought that it is not a good time for this investment.
The prices were rising higher and higher, and it was becoming difficult for all the developers as well as construction companies to keep up with them. However, things have started changing these days, and a lot of new projects are launching in Lahore in 2021-2022, which shows that people have started trusting this industry again.
Rental Income is Surging in Lahore:
Analyzing the real estate market of Lahore and its growth, it is evident that the current trends are appealing for both investors and landlords. As mentioned earlier, property prices in some areas of Lahore are surging and so is the rental income. The average rental yield in Lahore is 8-10% per annum.
Also, there is a huge demand for rental units in Lahore. According to Naya Pakistan Housing Scheme, there are approximately 125 million people living in urban areas of the country and only 7 million houses are available for rent. To comply with this shortage, it is estimated that around 3 million houses will be required to be constructed in the next 5 years just to fulfill the demand for rentals in urban areas.
Hence, property investment in Lahore can be a lucrative business venture if you have enough funds to purchase a property or multiple properties. Besides that, investing in real estate will also provide you with financial stability as you can get a passive source of income from your investments.
Finishing Up!
To sum up, Lahore is currently one of the hottest real estate markets in Pakistan. With the economic conditions improving and the government taking steps to boost the real estate sector, Lahore has become a highly lucrative market for real estate investors. There is no doubt that Lahore’s real estate market is flourishing. You can buy a house for sale, plots, or any other commercial property in Lahore if you want to invest in the real estate market of Lahore.
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