IN THIS POST
– Demand for Apartments
– Reasons to Invest in Apartments
Are you wondering if buying an apartment is a good investment? The answer to this question is pretty simple: if you are looking to buy a rental property or are in the market for a short-term investment option, buying an apartment as an investment might be the perfect option for you as they are easy to maintain and offer a high return on investments. Their high reasons to invest in apartment projects.
Apartments have always been a good investment. However, over the past few years, the popularity of apartment projects in Pakistan has seen a dramatic rise. In a country where people once preferred living in independent, detached houses, more families are now opting to live in high and mid-rise buildings. Owing to the shift in real estate trend from plots to high-rises, builders and developers had to turn their attention upwards and focus on vertical developments to meet the growing need for housing units in populated areas.
Therefore, if you are a real estate market entrant or someone looking for investment advice, we have put together a list of reasons to invest in apartment projects that will help you reach an informed decision.
Though before we begin, make sure to take a look at our guide on the different types of apartments in Pakistan to better understand your investment options. While 1-bed, 2-bed and 3-bedroom apartments are considered the most popular options, studio apartments and penthouses are also sought-after in major cities such as Islamabad, Lahore, and Karachi among others.
The Growing Demand for Apartments in Pakistan
The user data compiled on Zameen.com between 2018 and 2020 shows an increase in the demand for apartments across Pakistan.
In the Islamabad Capital Territory, the demand for apartments among prospective buyers grew from 15% to 17% during the last two years. The searches for apartments in Punjab also increased from 15% to 17% between 2018 and 2020. In Sindh, the popularity of apartments rose from 23% to 25% during this time, while the demand for apartments in Khyber Pakhtunkhwa increased from 17% to 19%.
It is also important to mention that the demand for plots saw a decrease over the last two years while the popularity of houses also saw a small hike.
The main reason for the popularity of apartment projects in Pakistan can be attributed to rapid urbanisation. With more people moving to big cities in search of better education and employment opportunities, the need for housing in urban centres saw a massive increase. In addition to that, the scarcity of land in major cities resulted in a price hike, which in turn prompted investors to buy apartments instead of plots. Since the government has also imposed restrictions on the horizontal expansion of certain cities in order to prevent urban sprawl, the need for more vertical developments in Pakistan has continued to strengthen.
It is also important to mention that apartment living is particularly popular among millennials. This is because these residential units are easy to maintain, relatively less expensive than traditional houses, and generally more secure, making them a perfect place to live for mid-career professionals and families with young children.
Now that we know about their growing popularity, let’s take a look at the reasons to invest in apartment projects in Pakistan.
Reasons to Invest in Apartment Projects in Pakistan
These are some of the main reasons why you should consider investing in apartment projects.
- Steady Source of Income
- Easy Maintenance
- Faster Development
- Saleability Factor
Here’s everything you need to know about buying an apartment as an investment.
Apartments can be a Steady Source of Income
Investing in apartment projects can provide a reliable source of rental income.
Whether you are a novice investor looking to buy your first rental property or are a seasoned investor planning to expand your portfolio, you should consider investing in modern apartment projects that can offer a good rental yield.
High-end features like concierge and valet service, high-speed elevators, covered parking area, high-tech security system, advanced fire safety and emergency systems, rooftop gardens and recreational area along with in-house gymnasiums and fitness centres are some of the must-have features of apartment projects that attract buyers and renters alike.
Owing to rapid urbanisation, experts believe the demand for apartments is only going to increase in the coming years. This makes them a lucrative investment avenue for those seeking higher capital gains.
On a side note, don’t forget to take a look at our guide on how to rent out your property in Pakistan.
Apartments are Easier to Maintain
Compared to houses, apartments are easier to maintain.
Almost all apartment complexes have their own management that is responsible for the maintenance and upkeep of the project. Not only do they look after the shared amenities and facilities but are also responsible for repairing leaking pipes, burnt wiring, water damage or seepage in the apartment units.
As an investor or a landlord, you won’t have to worry about fixing small issues that will inevitably surface over the years. The project manager will most likely take care of such things for a small monthly or annual fee.
Construction of Apartments Doesn’t Take Very Long
If you buy a parcel of land, it can take ages for it to be finally developed. Owing to various zoning and NOC-related issues, it may take years for plots to be available for possession. Even if you get the possession within a few years, getting the drawings approved and completing the construction of your house can take a long time. Moreover, new housing societies are usually located on the outskirts of the city.
On the other hand, apartment projects are usually developed in a relatively short period of time. Also, the possession is generally handed over within 2 to 3 years of a project’s launch. It is also important to mention that buying apartments is comparatively less expensive and can be bought on instalments. In addition to that, apartment projects are mostly situated in well-populated areas near the city centres.
Apartments are Easier to Sell
Last but not least, one of the main reasons to invest in apartment projects in Pakistan is their saleability factor.
Due to their increased demand, apartments are easier to sell in today’s market – particularly if they are located in a popular area. Meanwhile, luxury apartment complexes are usually situated away from the hustle and bustle of the city. However, they are always well-connected to major residential and commercial hubs through a wide network of roads, making them easily accessible.
Furthermore, the rent increase also has a positive impact on the value of apartments, which may appreciate over time depending on its location and condition.
To put it simply, investing in an apartment complex can be a good choice if you’re looking for short term investment options.
This brings an end to our analysis on reasons to invest in apartment projects in Pakistan. In case you are still wondering why you should invest in apartments, make sure to post your query on Zameen Forum for a timely response.
On the other hand, if you want to learn more about buying apartments in Pakistan, here are a few guides that will help you out.
- Best areas in Lahore for investing in apartment projects
- Pros and cons of living in a high-rise apartment building
- Everything you must know about investing in luxury apartments
- Ways to stay safe in an apartment building
Stay connected to Zameen Blog – the best real estate blog in Pakistan – for more information on the latest apartment projects in major cities across the country.
In case you want to share your feedback or want to ask a question, feel free to get in touch with us by dropping an email at blog@zameen.com. You can also subscribe to the Zameen Newsletter and Facebook page to receive the latest updates about the construction and property trends in Pakistan.
