Dear all,
Could you please guide me about investing in shops for rent and at the same time their value must increase as well. Please identify any potential places in Islamabad where this could be done along with the prices and rents.
Max Budget: 6 Million
Kind Regards
Any idea??
JKCHS, F-17, E-16 !
Junaid bhai,
Also explore G-11 Markaz. The markaz is stretching more and with Excellent builders coming into play NOW the new plazas are very fine architecture with good brands pumping in like D.Watson, Servis, Agha Khan Lab, Consultants and Builders occupied mostly all the offices at first floor.
The plus here you will find is Rental Return would be good as compared to other options qouted above.
Best of Luck
Thanks
@ISBase, what do you think about apartments VS shops for rental.
Shops has a lot of problem of rent raise, shop vacation issue in case you want to sale, subletting the shops etc.
Very good question !
The law has been recently changed. The previous law was in favor of tenant. The tenant dictates the rent raise and yes vacating property was difficult because of " pagri system ". Now according to new law the rights of owner are secured, the owner now dictates the contract modalities.
Still, vacating shops is an issue? Isn't it? Even executing a court decision is difficult. I know Pagri system no longer holds ground in Islamabad.
Apartments are frequently vacated by families. Next tenant comes according to prevailing market rent. But apartments has maintainence issue.
Shops has no such issue. One just give 4 plastered walls and normal floor to tenant. Minimum lighting and one small washroom. Damage to property risk is minimum.
So in all those Pros and Cons, which one has better ROI? Make location factor as constant like both apartment and shop in JKCHS, D-12, E-11 etc .
You have very good insight .
Thanks a lot ISBase bhai… JKCHS and E-16 (Maryam Arcade) seems like good options but the rental return is not that great now. And as Malik Sb pointed out, vacating shops could be problematic even if new laws are there to protect the owners. Seems like it is good to invest while they are being made and then sell them after possession.
This seems to me due to unawareness of new laws with the passage of time both tenant and owner will start realizing the laws and to abide them. Still its Pakistan and what happens here we all know that. But one has to be optimistic for better Pakistan where there is rule of law and we all don't have the fear of insecurity of our investment.
For choosing between above options find out the population factor. E-11 is well populated among all, also price tag does matter that what you are expecting ROI in let's say 2 years time.
JKCHS is now decently populated with construction in rise more specifically the bigger plots of size 60x90 and some 75x120 and considering the construction cost, the one who is spending 16 - 20 million on a house I'm pretty hopeful that he is not just spending this hefty amount to just rent it out, the chances are more likely he gonna shift his family for personal living. So the community in JKCHS is improving with the passage of time plus the airport factor whenever comes into play this area will be the first to be noticed by many.
Thanks malik sb for the encouraging feedback.
Junaid bhai,
Maryam arcade is also not that bad considering the price tag, first project. , decent quality of work and possession time.