In terms of ROI - Return On Investment i.e. (Investment) versus (Rental Value + Price Increase) which is a better choice:
OR
You may get a higher rental income for a shop in G-10 or G-11 BUT you will gain more in terms of rental income plus price appreciation for a residential property in a place like G-14/4; G-15, F-15 etc. - Yes or No?
And because commercial property in G-9, G-10 and G-11 is very very expensive, the return (rental income and value appreciation) as a percentage of the investment (what you paid for the price) is likely to be lower than the return on residential property in places like G-15, F-15 and G-14/4.
What do you think?
I think the commercial or residential property in any of the fully developed sectors of Zone 1 won't appreciate or increase exponentially. They are on the threshold, investors don't go beyond these prices for the sake of opportunity cost.
For background analysis, you might observe the prices of developed sectors in zone 1 are nearly frozen since few years.
Its a personal opinion only.
Hm rental wise G-9, G-10 might be better but what about commercial in G-13, G-15 I think so both price and rental wise better then G-9.
The problem with investment in commercial properties is that the rental value depends DIRECTLY on how much income the tenant can make from that property. If economic conditions and growth are good then the rental value from your commercial property will be high. BUT if economic conditions are not so good, the rental value is likely to be low.
On the other hand residential property has an INDIRECT relationship with economic conditions. When economic conditions are not so good, some people will not have enough money to spend on a plot or a new house because they are trying to make both ends meet. But people still have to live in a house even if economic conditions are not very good so residential property will still rise (not as fast as in good economic conditions) but will manage. Similarly some overseas Pakistanis will stay away from Pakistan but those who do not have dual nationality will still come back to Pakistan so they will bring foreign exchange and invest in their retirement home in Islamabad, Lahore or Karachi (most likely Islamabad).
I think if someone invests in G-13 or G-15 in commercial market, it may or may not rise as fast as expected; but for residential it will rise no matter what. What do you think?
I agree with PK1. Good analysis.