I am planning to invest 20-25 million for long term investment, would appreciate the guidance for the below points:-
1. The rental yield pakistan, is a very confusing subject for me, what is an average rental yield for a commercial property. And %age is considered a good deal.
2. What are the pros and cons for investing in a society, as compared to a shop in the regular city.
3. What should an investor focus on, the price appreciation of the property itself or the rental income, how can they be compared.
4. Suggest some good options in isloo/pindi/lhr,
5. As an overseas pakistani, what are the foreseeable risks and hurdles in collecting rent?
Rental yield of commercial property in Rwp/Isb varies between 5% to 10% depending upon its location.
But then the value of commercial and rental increases over time as the business activity grows over the years. So keeping your initial investment as constant, the rental yield can go way above 10% of its base price.
You should focus on big malls, arcades and commercials where business activity is expected to grow rapidly. Do not invest where commercials outgrow the population.
DHA, Bahria, Gulberg and similar ones are good places to explore.
Big malls and arcades usually have their own estate management offices which handle rental agreements and ensure both the parties are protected.
@Isloo1
I have seen a great boom in new malls all over rwp/Isb.
Isn't these malls are in oversupply as compared to the population?
@Zarkon
Surprisingly not, it has only changed people's shopping behaviour. Just like in Dubai, where shopping and grocery is a fun activity, so is the trend here. Now people like to go to trendy malls to shop in a style. Afterall, it is much comfy to roam around in a centrally aircon mall and then eat out in food court, than to huff and puff and sweat on some busy street packed with cars, motorbikes, hawkers and beggers under scrotching sun and dust.
I have seen trend changing in favour of big and luxury shopping malls and arcades. So, they are still not in oversupply.
You can totally disagree with my response below. It is based on my observation and not a scientifically approved fact.
Malls is a declining phenomenon worldwide in the medium to long term. This culture started in the US in 1950s and peaked in 1986. Since then there has been slow growth to shopping malls and over the years many have been abandoned or converted for other uses.
Since 2015, the online shopping and e-commerce is gaining momentum, adding further threat to brick and mortar shopping experience.
And now in 2020 when the world is in grip of corona pandemic, and more and more people are opting for e-commerce, this will further decline the experience of going for shopping in shopping malls.
And now the bottom line. Should you invest in shops in shopping malls? A sincere advice is no. It will waste your money as many shops will always remain empty in ever increasing number of shopping malls emerging in all large cities of Pakistan. Alternatively, you can invest in ordinary shops in populated localities of cities where rent is low but there are many people willing to take shops on rent and the price appreciation is quite fast, if you want to sell these.
Make your decision after doing thorough research and some spadework.
Gulberg Islamabad is one of the best option. You want rental income or want to invest for long term? I am living here and know the market and rates. Let me know if interested. Do visit before investing. You can whatsapp me 0312-5203793.
@ Ashar i donot agree with first part that people will shift to online shopping infact people love going to malls like centuras / Giga mall , dolmen mall , Lucky mall etc where it is like a festival , fun & Joy for entire family its not just shopping but also joy rides and gaming for children , Food courts and cinemas for entire families , window shopping and students group get togethers especially during Long summers people prefer airconditioned place.
Yes you are right that the rising numbers of malls coming up especially in Islamabad will surely effect the demand and prices of shops but that too in small malls which serves mostly as bazaars .
Ideal rental income is .05% in come cases its .04 as well
For my point of society and city are almost same
In my point of view both increase gradually
4.I have some commercial options available in G-15 as well as in E-11 let me know if you would like to know more
- If you have any representative in Pakistan then there is no risk
Regards,
abid
00923305870628
Rental yield should be around 5 to 10 percent annual depending on location.
investor should definetly focus on appreciation aspect if their isnt to much need for monthly rent for living. I have property in G-15. Its appreciated considerably and its commercial that for me given appreciation of USD is a very important factor
Good societies like bahria DHA should be fine as well as fully developed CDA sectors anywhere where there is large population living
i have my own commercial project in bahria town phase 7. We are offering good location flats and shops with good rental and appreciation prospects. Its new project so not on ground but if intereted then kindly let me know.construction will start after Eid IA.
regards
Anis-ud-din
03005146793
Commercials are good if u choose good location and good contractor.
I have constructed residential commercial of size of around 4m with 3 floors in Bahria town phase7 Rawalpindi.. It is currently in final stage of construction i.e. Ragwall etc. Very nice location surrounded by kanal houses and a nearby school. While it is under construction, flat and 2 shops are already rented out.
I can share my experience and videos. You can watsapp me at +966 57 898 1199
But big shopping malls are growing like mushrooms in every society named here. Trend will soon change once people will be attracted more towards malls with some unique concepts like jungle or aquarium etc.