In This Post:
Meaning of Real Estate
Vacant Land
Residential Properties
Commercial Properties
Industrial Properties
Agricultural Properties
Mixed-Use Properties
Special Purpose Properties
Real estate investment in Pakistan comprises various shapes and forms, and it can be a profitable way to earn. If you are planning to step into the real estate sector anytime soon, it is ideal for you to understand the basic types of real estate properties in Pakistan. Once you know them, you can easily determine which type is best for you as per your needs and budget.
The idea for this blog came knocking when we were discussing the categories of land, where we mentioned that real estate investment can be quite rewarding if you are well-aware of its basics.
As per usual, we will begin with defining the meaning of ‘real estate’ for you to develop a better understanding of the term. After that, we will take an in-depth look at different types of real estate properties in Pakistan.
So, without further ado, let’s begin!
Meaning of Real Estate
The term real estate is self-explanatory, and it means a real or physical property, something that is tangible. Real estate can then be defined as a property that can include land or a structure on a piece of land and the rights that come with being the legal owner of such property. It can further include the laws that govern the use of the property.
Further, if you hear someone using the term property or real property – do not get confused since both of these terms are synonymous and are often used interchangeably. However, in a few cases, real property has a slightly different meaning than real estate. And, it highly depends on the context. The other meaning of real property can be defined as the rights that are attached to a property. As such, the term real property also has benefits and interests in the ownership of a property.
You can easily step into the real estate sector by either buying, selling, or renting a property. If you want to become a successful real estate agent, you can also head over to our recently published guide and take help from it.
Now that you have a better understanding of real estate, it’s now time for us to share in-depth knowledge of the basic categories of real estate properties in Pakistan with you.
Basic Types of Real Estate Properties in Pakistan
Here are the basic categories of real estate properties in Pakistan:
- Vacant Land
- Residential Properties
- Commercial Properties
- Industrial Properties
- Agricultural Properties
- Mixed-Use Properties
- State-Owned or Special Purpose Properties
The explanation shared below will prove to be a helpful guide for anyone looking to understand the basic categories of real estate properties in Pakistan and what comes under the primary types.
Before we begin explaining each, we would like you to know that the latter two categories are subcategories of residential and commercial setups and are most commonly found in major cities of Pakistan. Now, let’s pick up from where we left off.
Vacant Land
The land is also known as a plot in the local lingo. It includes agricultural farms and ranches. Land can be defined as the earth’s surface, while land rights can include everything that is attached to it. Trees, lakes, minerals, water, or any natural or man-made resources attached to a certain patch of land are a part of it. Land rights also include air rights, surface rights, and subsurface rights.
For subcategories, land can be used for various purposes, depending on the local laws and zoning restrictions. Residential, commercial, industrial, and agricultural are the most common types of plots in Pakistan’s real estate market.
On a side note, if you are interested in buying a plot, our wide listings that mainly feature property available for sale in Pakistan can help you make an informed decision. From plots in Karachi’s DHA to plots in Lahore’s DHA Rahbar – we have you covered.
Residential Properties
Residential properties – also known as residential real estate – are the most popular types of real estate properties in Pakistan. As the name implies, residential properties are specifically used for residential purposes, and they can be bought, sold, or rented according to the same purpose.
For an average Pakistani, homeownership is, hands-down, the most important and biggest investment of their lives. Most of us spend our lives saving for a home that is according to our family needs. Homeownership in Pakistan also represents financial stability and has proven to be an asset that also doubles as a long-term investment. Besides being an asset, homeownership is also a liability. If you are wondering how, our recently published blog on hidden costs of owning a home in Pakistan will help you understand our point.
The subcategories of residential properties in Pakistan are mentioned below:
Apartments Buildings: Apartments buildings or apartments are known as flats in the local lingo. Flats are multi-family units that are shared by various owners. Spotting an apartment in cities like Karachi and Lahore is not a hard task. In fact, most of the urban areas in Pakistan are dotted with high-rises that are reserved for residential purposes.
In major cities of the country, many investors prefer to invest in apartments and vertical units due to its lower level of risks, popularity, lack of competition, convenient management, and easy maintenance. On the other hand, starting a project of apartment buildings in Pakistan usually requires significant expertise and investment.
Homes: Homes are the most important and widely used types of real estate properties in Pakistan. In comparison with flats, buying a single-family home requires a large chunk of investment. The great thing about owning a house is that you can build or modify it according to your needs, which isn’t quite possible in apartment buildings.
Vacation Homes: These are although a subcategory of home, people usually have vacation homes in either the hill stations of Pakistan or any remote areas. Vacation homes are also known as secondary homes and are separate from other dwellings of the owner. Secondary residences are usually used for recreational or holiday purposes since they are only used at particular times of the year. People from colder areas often shift to their secondary houses when the winters in their area get too harsh and vice versa. Meanwhile, overseas Pakistanis prefer buying their vacation houses in their home town where they usually visit on special occasions like Eid, Ramadan, or for family functions.
Cooperative Housing: Cooperative housing or cooperative housing societies are a distinctive type of homeownership. As such, if you buy a property in cooperative housing or a cooperative society, you become a shareholder in a corporation that owns the real property. You will then be entitled to occupy a residential unit as per the agreement.
Some popular examples of cooperative housing in Pakistan are:
Commercial Properties
The second most common type of real estate property in Pakistan is commercial properties. Commercial property usually refers to units that are restricted to business activities. Basically, any property that is used for generating income falls under the category of commercial properties. The subcategories of this type of real estate are mentioned below:
- Offices
- Shopping malls
- Departmental stores or shops
- Recreational facilities
- Motes, hotels, or resorts
- Restaurants, dhabas, cafes, or any eatery
- Theatres or cinemas
- Privately owned parking facilities
As mentioned under the vacant land section, commercial properties can be either a vacant piece of plot or a building.
Industrial Properties
Next on our list of common types of properties in Pakistan are industrial real estate. This particular type can be defined as a property that is used primarily for producing, manufacturing, packing, or storing goods for the consumer market. Industrial properties can also be used for research purposes and the distribution of goods, while they can co-exist with the agricultural unit.
Industries are usually known as a subdivision of commercial real estate since their primary objective is to generate income through selling or distributing goods. However, the classification is different due to a few obvious reasons. As such, the zoning laws, construction permits, and the sales on industrial properties are handled differently than other categories of commercial properties.
Further, industrial properties can include both land and buildings. The most common types of industrial properties are mentioned below:
Factories: Manufacturing units, most commonly known as factories, are categorised as industrial properties. This particular type of industrial property usually comprises a building, machinery, and manufacturing equipment where goods for common or special use are manufactured under a systematic process.
Power Plants: More or less like factories, power plants are used for generating electricity for commercial and residential use. Besides electricity, you will also find a few plants where utilities such as water are treated, bottled, or filtered for public use.
Warehouses: A warehouse or storage facility is a resource for industries. It is used by exporters, wholesalers, and importers to store goods for longer periods. Warehouses are popular among investors in Pakistan.
Agricultural Properties
For a genuine investor, real estate is much more than just a piece of vacant land or property. That said, agricultural lands are more or less a subdivision of commercial properties, but the concept of agricultural properties in legal books is different.
Agriculture properties are usually found in rural areas of Pakistan. They are used to produce crops or plants and raise cattle. The biggest perk of owning an agricultural property is that it can be bought, sold, or rented, and it reflects a diverse effect on your property portfolio.
Moving forward, agricultural properties can be subdivided into the categories mentioned below:
Cultivation Farm: The area of vacant land reserved for cultivation purposes is known as cultivation farm. It is used by the farmers to cultivate food and other crops. Cultivation farms are usually coupled with livestock farms.
Ranch: Similar to a farm, a ranch is used for raising or breeding livestock such as cattle, sheep, chickens, or ostrich. Although different from a ranch, fish farming is also a popular source of earning from agricultural land in Pakistan.
Forests: This one needs no explanation. Forests are a collection of wildlife habitats, and they provide us the essentials of life such as clean air, water, minerals, stable oils, and wood. For further clarifications, navigate to our piece of classifications of forests in Pakistan.
Orchard: Slightly different than cultivation farms, orchards are used to plant fruitful trees such as apple trees or olive gardens.
If you want to explore more about agricultural schemes in Pakistan, then take a look at our recently published blogs on:
Mixed-Use Properties
Mixed-use property is a type of real estate property that serves more than one purpose. Just like Elanza Mall and Residency – a partnered project of Zameen.com – many real estate properties in Pakistan have various and mixed purposes. Simply put, if a property has both commercial and residential setups within the same boundaries, it is known as a mixed-use property. It can be anything from the combination mentioned below:
- Houses, Shops, and Offices
- Shops and Houses
- Office and Houses
To be deemed as a mixed-use plaza or building, the building should be assorted with residential units; otherwise, the combination of malls and offices isn’t called mixed-use real estate.
State-Owned or Special Purpose Properties
State-owned properties are usually owned by the government and given to the public for special purposes like education, worship, or burying. The popular types of special purpose properties are schools, mosques, or any other religious centres, schools, libraries, cemeteries, parks, and government buildings such as NADRA, secretariat, or assemblies.
This brings us to the end of our post on property types in Pakistan. We have only discussed the basic ones in our blog. If you have any further questions or suggestions, write to us at blog@zameen.com. Before signing off, we would add a few more things.
Real estate investors or property buyers in Pakistan have a vivid spectrum to choose from, depending on how they want to begin or grow their property portfolio. Considering the options mentioned on our list, it wouldn’t be wrong to say that real estate investment includes less, if not zero, risks.
For more informative posts on the real estate sector of Pakistan, keep visiting Zameen Blog. Get our latest posts delivered directly to your inbox by entering your email address in the box on the right side of your screen. If you want to make us a part of your timeline, navigate to Zameen’s Facebook Page and give us a thumbs up.
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