Hi what new project for commercial will yield highest roi ?
It's a very tricky question. New projects will deliver or not? To answer this you should do a dig down analysis, past performance and past history of delivery.
I would say go for CDA sector shops and play safe.
I new projects you may research on Gullberg Commercial, Bahria Enclave.
Mr Khalid what about Florence Mall or similar projects where company gives monthly rent from the completion of full payment and owner also get annual profit on selling back the unit to the company.
As of now:
-- Proper CDA Sector = Big Yes (though expensive)
-- Private/Cooperative Projects (BT/GG/DH/B-17) = In current circumstances Disappointments with rare exceptions where commerical to residential ratio is proportionate (yes, it's affordable commecial). Example: GR commercial is under developed and much cheaper then GG's but due to close proximity to population it seem to have better ROI in 3/5 yrs frame when Residencia gets populated.
-- Open Projects like Saddar, Satellite Town, Chakri, Adyala, etc. = Quite good in longer run (may carry additional risks such as stay orders/litigations etc.)
The answer boils down to simple questions:
- Budget?
- Holding Power?
In recent years lots of commercials have mushroomed up on easy installments that seems quite attractive to own with partial payments. However at the end it's hard to sell off on lump sum or yield optimal returns due to Supply--Demand...
@Imtiaz sahib,
Can you please clarify that if you have a commercial investment in BT/DHA there is little or very less chance of facing a stay order/litigation issue?. I ask this as I faced a stay order issue when I sold my commercial property on Dhoke Syedan road in 2018. Thanks in advance.
Yes, Rauf sb, there is much less chance but there exists some cases in BT (though rare exceptions) that I personally know, got stay due to some legal litigations with RDA. Primarily the building bylaws. Perhaps part of BE commercial was on brink of that too due to issues with CDA but somehow managed to sort it out (need double check to be precise). There are two cases:
-- Commercial owned and developed by BT. That is much sound and if there are issues BTs have enough resources and links to sort that out under the table.
-- Commercial land purchased from BT but developed by private developer. Land wise, if not encroached by BT is all ok. However if there are any violations in building bylaws, by rules RDA/CDA will deal with that/put on stay. I personally know a developer in BT P1 who got stay from RDA (structure sealed) at the complaints of a customer on violation of bylaws. Later that was given OK signal with some changes and some payments under the Table.
Similarly you will often see CDA warning people in some B-17 under construction stuff because NOC got revoked, though B-17 is CDA sector as cooperative society .
DHA is an Authority and have more control over its own bylaws like CDA but still if there is a gross violation and DHA ignores, CDA by law can override DHA to take appropriate action action.
In societies like BT etc. Stay could most probably be due to violations of by laws in building structures (95%), while in open projects there could be many issues due to encroched land, conflicts among owners, by laws etc.
Percentage of Stay in open projects are much more common-place but extreme exceptions in projects like BT.
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-- Stay technically speaking is mostly ordered by courts due to legal issues.
-- Seal is respective Authority with physical lock down to implement the stay.
Kashif Sb,
I heard about Florence Mall that its stakeholders are very influential people and investments are done by retired Generals as well.
You need to visit the on ground position and discuss options with the sales and marketing team. If the construction activity is on the good track and the rates are competitive one should go for it.