Please list the best sectors/societies in islamabad that are excellent for starting a construction business. Budget is 12 million. The investment should be safe and sale/purchase activity should be good in the area.
What do you say about d-12, i-11/2, bahria enclave, g-13, g-14/4? Any other areas like g-15, b-17??
Your opinions please…
Junaid sb…Sir sb construction business is good in those areas where availability of plots is less and genuine demand for ready made houses exist and unfortunately all the sectors mentioned by you is not suitable for such business…G-13/14 also have very very low profit margins these days and you may have to even sell at your cost price. If you really want to enter this business, better to go for small old livable houses in fully developed g sectors,renovate them according to new standards in a reasonable amount and sell them…You can make a reasonable amount in this process.But one thing,you have to spend sensibly on renovation as you also have to take some margin from it.Also the buying cost of your house should also be good.BTW market is really low these days in whole of isb.
I think for construction business, D-12, Bahria Enclave, DHA-2 and F-15 are reasonably strong right now.
In the future, Multi B-17 will be very strong whenever Margalla Avenue is built because people looking for rent options in D-12 will also opt for B-17 if MA is there. Higher rentals get you better price of newly completed house as well.
@ paki 1…Sir none of them are suitable for construction…Hundreds of houses are already in market and no buyer for them is there…At such place,most of the people prefer to buy a lot and construct it by themselves…Even g-15 has a lot of houses in market at low prices,let alone f-15 to have a good resale.
Junaid sb…Sir sb construction business is good in those areas where availability of plots is less and genuine demand for ready made houses exist and unfortunately all the sectors mentioned by you is not suitable for such business…G-13/14 also have very very low profit margins these days and you may have to even sell at your cost price. If you really want to enter this business, better to go for small old livable houses in fully developed g sectors,renovate them according to new standards in a reasonable amount and sell them…You can make a reasonable amount in this process.But one thing,you have to spend sensibly on renovation as you also have to take some margin from it.Also the buying cost of your house should also be good.BTW market is really low these days in whole of isb.
@ paki 1…Sir none of them is suitable for construction business…Hundreds of houses are already there in market in these places and no buyer at all…Dha 2 is okay as trend for construction is there but rest of the places are literally useless for construction business.Yes you can buy plots and keep it for future utilization.
@ paki 1…Sir none of them is suitable for construction business…Hundreds of houses are already there in market in these places and no buyer at all…Dha 2 is okay as trend for construction is there but rest of the places are literally useless for construction business.Even it is difficult to sell a house in dha 2 as they all are big houses with big price tags.Yes you can buy plots at the places mentioned by paki 1 and keep it for future utilization.
Yes it is difficult to sell big houses. Always better to construct on 11 marla plot for sale of house. In current slow market, it is better to buy twin plots of 35x70 if you can get such options and do simultaneous construction of both on similar design to take advantage of economies of scale in everything.
Thanks a lot Saadi and Paki-1… I think demand for small houses is evergreen… DHA2 might be good but out of my budget for selling purposes… I guess I will look into D-12 and maybe Bahria Enclave but for some reasons people are telling me to stay away from BE…
Thanks a lot Saadi and Paki-1… My reply is pending for approval… But I think D-12 sounds good for now… Btw how much can one earn in making a 4.44 marla house in D-12 and what is the total cost of such a project?
Comments pending for approval, ergh… Please guide on D-12… Cost, Profit, Sale Price etc for 4.44 marla houses…
Junaid sb...7 million plot cost on average
3.5 million construction..
Demand is usually between 1.25 to 1.3 crores..
No fix sale price as no sale purchase and definite rate at the moment.I myself have seen some houses that are on sale for last 1 year approximately.
Saadi… What would be best place to make a house for rent? budget is same around 11-12 million. What about flats in F-11?
@ ahmed…Sir best rental option would be to buy an old 25x40 house in g-11 and get it renovated and then rent it.Flats of F-11 are also good to rent as they have good rental yield…Otherwise you can also go for a shop in some good commercial area in this budget as yield of that shop would be high…It is difficult to manage a residential property with tenants because private parties creates nuisance for you and does not pay rent regularly and government employees donot have such income who can pay you market rent so either you have to compromise on your peace of mind or rental amount…Choice is yours.
Good idea saadi. Actually i have contrary in regards with type of tenants for commercial and residential. I heard that commercial are more difficult to deal with. What is good place to buy an already rented shop? what would be monthly income?
Sir now in societies like dha and bahria you have proper agreements with the tenants of the shop so that goodwill issue type nuisances are no more at these places…According to market formulae, a 12 million shop should give you a minimum rent of 60k/month. On contrary, if you buy a house in g-11 in this budget you wont get more than 40k aaprox i guess. Won’t recommend you to go for already rented shop…Get a shop and then rent it by yourself after fulfilling all the modalities.
BTW F-11 flats also have very good rental income.
AOA,
I agree with Saadi Bhais comments Even in a booming market,1 kinal construction is a huge risk unless you have holding power of atleast 1 years or so. The best size is between 5 to 10 marlas.They can be sold easily.
Now days the market is dull very less sale and purchase is happening in big names.
Junaid bhai, at the start of your business, i think renovation of an old house in developed CDA sectors would be a good option. Once you will be able to get some good knowledge in this field, then you could go for construction of new houses as well.
Regards