Whether residential or commercial, investing in a piece of land is considered more profitable than buying ready-to-move-in property, as in most of the cases the resale value of a plot increases with time. For first-time buyers, especially, making such an investment can be a daunting experience. Fret not! We’re here to help you. This blog focuses on the key factors affecting the value of plots in Pakistan. This small checklist will help you make an informed decision. Have a look.
6 Factors Affecting The Value of Plots in Pakistan
When it comes to the value of plots, there are a number of elements that come into play. You need to consider all of these things before striking a deal.
- Location and Environment
- Property Features
- Neighbourhood Amenities and Security
- Transportation and Infrastructure
- Development Work
- Demand and Supply
Let’s get to know more about these factors.
Location and Environment
Location is, hands down, one of the most important factors affecting the value of plots in Pakistan. Buying a plot in a far off region of a city will obviously cost you less than investing in a property located in or near the city centre.
Environment can also cause significant fluctuation in the price of a piece of land. People investing in residential plots usually prefer serene environment, which is not the case with investors of commercial properties since they desire investing in an area that is more commercially active.
Property Features
Either commercial or residential, every plot has one or more features that help set its value in the property market. Take Karachi for instance, a plot in this mega port city with a corner or a west-open location usually has a higher price. Similarly, every city in Pakistan has its own parameters that help determine the value of a certain property.
Neighbourhood Amenities and Security
Proximity to places like markets, shopping malls, parks, schools, universities and healthcare centres can significantly increase the prices of plots in Pakistan.
Generally, to avoid long commutes, people prefer living near schools and colleges. The same goes for healthcare centres. Having good healthcare centres in the vicinity may cause the worth of your plot to go up.
A piece of land that is situated at a central location in a city is usually surrounded by commercial centres and entertainment activities, which may also result in increasing its real estate value.
Another aspect that importantly adds to the value of a plot is security. One of the biggest reasons why people prefer investing in projects like Defence Housing Authority (DHA) or Bahria Town is that these neighbourhoods offer a secure environment, which is robustly backed by their own security staff, CCTV camera as well as local police.
Transportation and Infrastructure
Accessibility to transportation is also counted among some of the most important factors affecting the value of plots in Pakistan. In the light of conventional real estate trends in Pakistan, the worth of a property automatically goes up if it is proximity to a popular expressway, allowing people to conveniently access public transport.
Meanwhile, infrastructure-based development also has a noteworthy impact on the prices of plots in Pakistan. Taking the case of Ring Road in Lahore, this project has significantly raised the value of the real estate in its surrounding areas. Signal-free corridors like Ring Road Lahore provide effective transport linkage, adding to the convenience of people living in nearby neighbourhoods. This often results in an increase in the cost of plots available in the area.
Development Work
The more a society nears its completion, the higher its real estate value gets. This practice is followed conventionally in the property industry of Pakistan for the valuation of land. For instance, Bahria Town and DHA Karachi are two of the most sought-after neighbourhoods in the city of lights. Both of these societies enjoy a similar popularity status but since Bahria Town Karachi is still under development, the plots available for sale in it cost cheaper than plots in Karachi’s Defence area, which is a residential community offering full-fledged living facilities.
Demand and Supply
With major demographic changes in a city over time, the need for land increases, usually causing its property market rates to go up. Plots in housing societies located within city boundaries are the ones that usually benefit the most by this increase in demand of land as they offer exclusivity and security in an ever-growing urban jungle.
However, this shift of demand and supply is being observed more frequently these days as compared to previous years. It is also resulting in many new real estate developments within and outside the different metropolitan areas in Pakistan.
These were some of the crucial factors that you should consider for the valuation of land before investing in a plot. On a side note, if you are more interested in buying a home, then you can also take a look at our blog in which we have listed down some key real estate aspects to help you better evaluate your property choice.
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