Is it worth buying land in Pakistan?

Posted by dealanddeals.pk on November 1st, 2021

Despite the financial tool; economical troubles; unstable political situation; and so many akin factors, Pakistan is a land of opportunities. And in this land of opportunities, real estate is the biggest investment sector. It is almost miraculous that after all these troubles, this country still has so much to return to its investors. Don’t go too far, just see the examples of emerging housing societies such as Nova City Islamabad, Capital Smart City Islamabad, and you will see what a healthy return on investments people are enjoying just after 2-3 years of putting their money in these projects. 

But staying on the topic, is it actually worth it buying land in Pakistan? Here are the different dimensions of the real-estate sector and purchasing land here.

The volume of the real estate industry in Pakistan

Recent figures released by the Pakistan Bureau of Statistics showed that real estate business accounts directly for 2% of Pakistan’s GDP. Documented part of this segment is somewhere between 0 to 0 Billion. But again, that\'s the only documented part. A 2019 survey conducted by the Government of Pakistan showed that more than 56% of Pakistan’s GDP is informal. Actual stats are not known but considering that real estate is the biggest market of Pakistan, undocumented real estate can touch the massive volume of billions of dollars. 

These stats show how much buying land has the potential to pay back in the long run.

Is it worth buying land in Pakistan?

Keeping the answer simple and straightforward: Yes, it is.

When it comes to purchasing land, there are two broad categories. Firstly, buying a vacant piece of land, and second, land with some construction or infrastructure. Both are pretty nifty investment options but the former one is a lot cheaper than the latter one. In fact, it is the most lucrative type of investment in Pakistan. 

Why you should buy land in Pakistan

If you are looking forward to earning good returns on investment in the long-run, multiple factors make buying vacant land the best option. Here are some of the reasons:

• Buying land is a lot cheaper than buying a house, building, or investing money in commercial units

• Buyers can build houses or anything the way they want. Land with built structures can be easily sold at the triple or quadruple price compared to the cost of the land. 

• Land does not require any maintenance et cetera. This saves a ton of money besides the factor that the worth of land keeps increasing with time. 

• There is no threat of vandalism related to this investment especially if you buy it in safe societies such as Nova City Islamabad and Capital Smart City Islamabad. These societies are highly secured with fenced borders, continuous CCTV monitoring, and security personnel patrols. Also, there is good law and maintenance that ensures the security of people and their tangible/intangible assets.  

• Taxes are lower for vacant lands compared to taxes on residential, commercial units.

• There are very good and affordable installments options available for plots. Go through the Nova City payment plan and you will realize that even middle-class families of Pakistan can afford the monthly installments of residential plots without feeling a ginormous amount of burden on their budget. And not only the monthly installments but down payment amounts are also very reasonable. 

• The land is a very asset and besides gold, only this asset has the potential of beating inflation.

Some of the must consider points before buying land in Pakistan

If you are thorough during and before the process, it would save you from many potential troubles of the future. Some things you must consider before buying land in Pakistan are:

Legal status

The real estate market offers a lot of opportunities but with that, the level of fraud is very high. For example, many housing societies in Pakistan are continuously selling properties in Pakistan with their lush marketing campaigns and promises of world-class facilities but those societies are illegal because they do not have their NOC. 

If you are buying land from an individual, ask them to show and provide you with all the legal documents and get them attested. If you are buying land in a housing society, duly check the status of their NOC. If society doesn’t have the NOC, legislative authorities can ban or demolish the project anytime. This will waste all your investment without any chances of returns of even original cost.

Developmental status

Instead of falling to the charms of marketing campaigns, check yourself about the developments around your land. Visit the area and check:

• if all three basic utilities, water, gas, and electricity are available or not

• Is the property easily accessible?

• Are roads developed

• How far away main areas of the city are

• Is the place safe to live in with family?

If you are buying property in society, simply compare their current development status with developments 2-3 years back. 

Know your purpose

Are you buying the property for the sake of long-term investment, to build a house on it, start a business there, to rent it, or for any other purpose?

The more you are clear about your purpose, the better property you can find. 

We recommend you to get in touch with some reliable real estate agencies and get consultations from their expert property consultants. These people are a lot more aware of the market and guide you better in which property to buy and where not to invest your money. 

Give importance to location

Location decides the worth of property. Land in the main city can be multiple folds worthy than a lot bigger land in suburban or rural areas. The better landmarks in the vicinity of your property, the more worthy your property is. 

If the land is far away from the main city and it is not easily accessible, you can hardly earn any returns on this investment.

Have a clear range in your mind

Before even starting the process of land hunting, go through your finances and define a clear budget range for you. Once you have your range, find options according to that. It will save you both time and money. 

Being clear about your budget will also help you to figure out how you are going to finance your purchase. Usually, the finance options available are one-time payment, band payment, and payment on installments. 

Type of property

Defining your purchase purpose will help you figure out the type of property you need. If you want it for residential needs i.e. building a house and living there or to rent it, you need residential property. If you want to start a business or to build shops et cetera to earn monthly profits, you need to purchase commercial property.

State of market

Evaluating the state of the market at the time of your purchase is very important. Ups and downs are part of the market. If the market is booming or is growing, you can get good returns in a very short time. 

Always make a purchase when rates are lower in the market and there are reliable predictions that prices are going to rise in the future. 

Assessment of market value

Must assess the fair market of the property before finalizing the deal or making your offer. Get opinions from multiple real estate consultants or agencies. 

Documentation process

When you finally find your desired property, be as thorough in the legal and documentation process as possible. Either hire a lawyer or real estate agency to represent you. Collect all the legal documents, previous bills, taxation documents, and everything possible. Do not go through any short cut and follow all the steps of property transfer in Pakistan. Usually, this process includes:

• Verification of ownership documents and concerned parties

• Applying for a No Demand Certificate (NDC). It is a document containing the exact amount of the transfer fee along with details of any unpaid charges against the real estate.

• Preparing a property purchase agreement. Only legally licensed personnel can draft this contract

• Deciding that what would be the mode of payment between the parties

• Paying all the legal fees and tax

• Making payment(s) at the time of transfer

Bottom Line

Buying land in Pakistan is the safest and most reliable investment option. It is perhaps the only option insight that can fight the monster of inflation in the country. 

If you want to buy property, or have any questions about emerging housing societies such as Nova City payment plan, Capital Smart City NOC et cetera, reach us out anytime to benefit from the free consultations offered by Deal and Deals.