I want to do construction business. Which place in lahore is best to buy n build home for sale. H much area shd i buy for land???
Location and small plot size should be a priority. Rest is simple luck. But if you want to start this business the proper way than just buy small size plots in good locations. Than wait for a year.you will have a clear picture where construction would benefit. Than sell one or 2 plots for construction. Less risk because you will get an idea of that society Plus profit margin can be between 40 to 50 % if the land appreciates.
@ HT…Sir would you plz recommend some profitable locations as only zone 1 has abundance of smaller plots but profit margins are literally nil in such ventures in zone 1 at this point and time.
As myself happen to be in this business, I tend to feel at times that this is a dying business, not much margins left nowdays, rising costs and decreasing quality, with just too many peoples doing this business, and if you are doing it for thirds parties, there will be lot of conflicts between builder and owner, owners think that builder is making huge moneys, while builders rend to fleece owners by cheating
I think its a good business as a SIDE BUSINESS only
you must have something else going on to meet your monthly expenses
I have the same question for brother HT that Saadi asked, thanks
The simple graph that i have relied on is this:
15% profit on the construction cost plus what ever the land has appreciated in 6 to 8 months time. Plus you can monitor the development around you to see if any jumps are expected in property market.
Saadi bhai aap to hum saab ki senior hai. It would be hard to advise you but now days the only hot cake in islamabad is the 10 lanes. Property has appreciated at least 25% in almost every society near the islamabad highway. In my opinion there is still profit until its completion.
Dr.Nazar Muhammad I am very much agree with YC answer,
You need to keep in mind following things in mind before you choose this buissnes.
Every 2nd person around is doing construction business.
If you can cheat people then its not a bad business but for honest man its getting difficult.
You must have some experience in construction before start this business, I would suggest spend some time with any of your friend who is doing construction business.
4.The location is very important in this business, Any odd location will trap you in problem.
5.The profit margin is not bad compare to other business in our country.
- The construction business comparatively safe and secure business.
For side business, is it wise to get a 5 marla house built in Bahria Phase 8 for short term gains?
@ Akif…Dont even think of it sir if you love your hard earned money.
@ HT…SIr name some profitable places in zone 5 for 5 marla construction plots since one of my acquaintances wants to do such venture?Which one is profitable pwd, anchorage etc?
I am also interested in buying 5 marla plots and making busines
100% agreed with YC.
@Akif Bahria town for short term gains is not at all possible.
@saadi BHAI
Pwd is and will be a hot cake for a long long time. If given a choice i would go for PWD but land prices is very high.
The next hot place of build for sale construction is Jinnah Gardens phase 1.
You construct on a plot which you've bought two three or more years earlier, for example if you are thinking today of entering into this business then for you a good place would be zone II where sectors like B17 and others have plots which in very near future will be at same or higher potential level as the societies of zone V are today.
Mr. Tanoli, not every 2end person doing this business, need lot of money for construction .i think
@Ahmed Tanoli
This is a holly business and it still has lot of potential for an honest person to earn rizq-e-halal
Business is holly , but in pakistan every 2end person is not honest.
If you have construction experience Its good otherwise you have to work with someone in construction business. If you just “Niat” for halal income not deceive people In Shaa Allah you will be successful in life. All depends on your “Niat”.
Saadi Bhai can you please explain the negatives of Phase 8 for construction business
In 7 marla plot you can easily earn at the start from 10 lac to 15 lac. But if you have multiple projects than you can earn alot. Honesty will give you a dip but eventually you will emerge victorious once the market repute is built.
Http://realestateislamabad.blogspot.com/
Small House Construction in Zone 5 Islamabad
Jinnah Garden 30*60 plot is in around 40 lacs and average construction cost would be around 50 lacs and project completion time is 7 to 8 months at total cost of 9million. Selling price could be between 105 lacs to 120 lacs depending upon location, construction quality and market condition at time of selling profit margin in the range of 20% to 25% including land appreciation.
Navale Anchorage has 5 marla plots and project would be ready in about 6 months with cost of around 7million and has margin in the same range but selling time might get longer as Anchorage is slightly off the highway.
River Garden has very limited 5 marla in the beginning and in the area adjacent to Sohan Gardens Block-H extension. But most of 5 marla is already constructed. Would need to go for 7 or 9 marla and project cost would again be in the range of 9 million and similar margins as in Jinnah Garden. Being a smaller society it might take slightly longer to sell the house.
PWD is on the costlier side and Sohan Garden Block H and H extension has 5 marla but comments and feedback is mixed. Ghauri Town is another option but again has had issues in the past and considered to be carry more risk than others.
5 marla could also be done in airport housing society but its not Zone-5.