Some general tips (pros & cons) for buying an apartment
1. Locality: In residential societies, generally Apartments are at the commercial or prime locations that is much better developed with all available facilities. For example, in Gulberg Greens an Apartment (2/3 bed 5 - 7 million) owner or tenant will enjoy same greenery, locality and facilities as that of a Farm House owner with 50 million+/- investment.
2. Rental Value & Price Appreciation: In good locations rental value of a furnished apartment can yield about 0.5% to 0.7%/month of total price. Price appreciation is not good. In KHI Apartments are in much more demand, in ISB, LHR trends are changing but as of now less price appreciation.
3. Security & Maintenance: Normally security and maintenance services are managed by developer at a price (2000 PKR approx/month for 1000 sq. ft.). Yes, Apartment life has better security, maintenance, and care free environment
4. Pricing: In ISB/RWP at good projects (BT, DHA, Gulberg, Enclave) Apartments are booked in the range of 5500 to 7000/sq. ft (on Avg.). Best time to buy on installments is at the time of prelaunch that can get one good 20%+ discount and Apartment of choice. You can also get the configuration customised as per your needs, after certain amounts have been paid.
5. Location of Apartment in the Building: Some developers charge more (2% to 5% extra) for Apartments closer to ground, some do it opposite. Avoid Apartments that are below ground level (i.e., basements), can be cheaper but less ventilation/sunlight and hard to rent out sale.
6. Front Facing vs Back Facing: Try to buy front facing apartment, same direction as main entrance. Will have better view with terrace and more demand for renting out. Front view terrace adds to the aesthetics, feel and demand of an apartment
7. Commercial vs Residential Project: Try to buy in an all residential apartments project, will be more peaceful. Mix of commercial vs residential can have grocery shops etc. right at the doorstep but too crowded and noisy.
8. Location of Apartment: Apartments in projects like BT, DHA, Gulberg are much better value for money. I heard Zarkoon Height (G-15) is good in terms of access, quality of construction etc.
9. Future of Apartment-based Investment: Slower appreciation comparatively, takes more time to sell off. General advice would be to go for 1000/1200 sq. ft. with 2 - 3 bed apartment in the range of 5 to 7 million. That can be better return in terms of rental value, comparatively easy to sell-off or exchange with other properties.
10. Legality: Check legal issues, that project is approved by CDA/RDA etc. Check approved layout plan to avoid any later disappointments or legal stay on construction.
11. Covered Area: It a tricky part, as circulation area, i.e., galleries/stairs/elevator areas are added in the area of the Apartment. For example, in an Apartment of 1000 sq. ft. Gallery/Stairs/Elevator slot etc. may take up 200+ sq. ft. to be paid by the purchaser/owner. Covered Area + Circulation Area. Check this before buying any apartment.
For personal living (smaller family) and short term rent out Apartments are good. For investment, price appreciation, not as of now.
Apartments in BT (Phase 1 to 4), DHA, Gulberg to me are better value for money.
Safety, Security, Maintenance is good and mostly dedicated in Apartments compared to house etc.
On Avg. 5500 to 7000/sq. ft. depending on location, facilities, and how much structure completed. 2 - 3 bed beyond 5 - 7 million is not that attractive, speaking in general terms.
CDA sectors plots/houses is a different story. Mostly apartments in CDA sectors for me are overpriced and lesser value for money. Closer to NUST or that area G sectors can be better choice (explore Zarkon Heights). H-13 sounds attractive but H sector in principle was designed to be an educational sectors. H-13, as far as I recall can be cheap but had some litigations and some parts banned for construction and messed up layout.
Rest there are many existing threads on House Construction/Purchase/Renting, implicitly or explicitly.
** Personal view, subject to factual corrections, in case some obvious has been missed!
261 days ago