Which commercial profit can i invest in for most profit at the moment
Mohammed sb
Which city?
Islamabad or pindi brother Abdul
Depends upon Investment Range lot of projects in Islamabad and Rawalpindi.
Yakub sb.
Mostly I post here my personal experience with my own ventures:
Alhamdolillah, I have investments in Islamabad, BT Pindi and DHAs.
I did both commercials & residentials and have special Blessings of Allah Bestowed upon me that so far I am quite successful.
Having said that, let me also explain here that I do have potentially sound, partners who are honest, influential and full of resources.
I am sorry, I cannot post name here.
Coming to your query: Commercials which can deliver immediate lucrative profits are those which are located in big thick residential clusters in any good township.
My most recent experience is with bahria phase-8. We are making a 6 story plaza in overseas 5 and basement Hall, ground hall, 1st floor hall and top flat already booked and still our 6th roof of structure is not done!
Rents here are very good and immediate.
Basic point is whether or not you are after an immediate rental income from commercial or you wanna wait till enough houses around to put some value in your commercial?
If you tell me a bit about your limits then I might serve you with my little knowledge, In Shaa Allah
Brother my budget is approx 10-15 million but installments please send me your number
I would strongly advise investing in large commercial projects like malls and arcades as it takes away your headache in managing troublesome tenants and buyers. The estate management office of the project does this for you.
Take World Trade Center (WTC) and its Giga Mall for example. Its' shops have seen 500% price increase since booking.
I can recommend one such in Bahria Enclave, next to Bahria headoffice, called Capital Mall & Residency. It's construction is fast paced and completion/handover is ahead of schedule. Prices are quite reasonable, but prospects as a successful business place are quite high.
You can check out other similar options as well, but a commercial should give you minimum 6-8% rental yield and must be headache free. That's my idea of investing in commercials.
Yakub sb
Isloo1 may be right but you need to see the onsite situation and reputation of the builders as well.
I will work on your query and send you a good option in due course In Shaa Allah.
I could have offered you investment in our own under construction plaza but already a countrywide food supply chain is negotiating with us to take 3 floors on rent.
@AQ
What should be the expected rental income from phase 8 projects? Like 0.5% is usually considered good but what is reality?
Zarkon sb
Depends upon which are in phase, you are targeting and whether it is residential or commercial.
Again it would be a personal info: in overseas it is 6 to 7%.
Other areas are pathetic also. For example we built 15*20 units comprised of one shop at ground and one studeo at 1st floor and getting rent Rs 20,000 per unit which is less than 4%. Will have to wait at least a couple of years b4 it breaks even. Phase-7, overseas, lake view residentials are good at rental but renters make havoc when leave. I had bad experience also in DHA-2 with good looking/speaking/educated renters!
@AQ our Guru
Can we do small investments like 1-2 million in shops in BT or near vicinity?
Zarkon sb.
In hot areas in phase-8, not possible!
Only one option is left for you as per my little knowledge: Buy one 15*20 muhalla commercial in safari valley blocks and build it. Rent will be around 20K per month. Plot will cost you 35 lacs and construction is very simple...Rs 1850 to 2000 per sq/ft.
In other societies, I do not have knowledge not I advise on problems with renters.
For renting still BTs n DHAs are best or other very high profile commercials on GT road.
@AQ
The net cost will be 35(land)+ 15(approx...gnd + first floor)=50 lac.
As you mentioned earlier that rent will be 20k of that unit, which is around ~4 % / yr.
Sir what will be price appreciation of that unit over the years? Any Idea? Although rental income is a bit less but a good price appreciation can cater that in few yrs.
Zarkon sb
As I said safari valley blocks small commercials are not hot in recent times but as annual rent increase is min 10% and the fact that residency is increasing at a good pace in all blocks, the return will be on par within 2-3 years.
In other Pindi non society areas, rent may prove better but in those localities, generally shop owner is thought as an " enemy" whereas in good managed townships situation is lot better.
In your budget another good option can be newly launched 30x40 developed commercial plots in bahria enclave sector N.
Price 15 million.
Dp 3.5 million
Remaining in 1.5 years installment and also enclave 1 and 2 merging allowed.
Totally agree with AQ sahib , commercial project in populated area or as isloo said big malls with proven records are good for investment
The bad news for investors in commercials areas is that returns take decades when thick population shows around. In BT phase -8, for example, the small sector commercials 15*20 ft were sold at 60 plus lacs..now even safari valley is populated and coming up at good pace but these commercials dropped to 35 to 40 lacs!
Still need at least 2 to 3 years when price may see a rise. Has to come up as residentials around define the commercials worth.
They may see natural small rise with passage of time but putting money in commercials when there is no thick populations, the immediate rental returns are difficult to happen.
See DHA valley commercials, initially dealers looted innocent investors by selling a 4 marla ar 70 lacs and since no residency around, these plots now dropped to 35 lacs and still no buyer around.
Commercial investment is tricky and money could stuck for longer time, if commercial is not buried in houses....lot of houses around.
Experts, what about zameen ace mall? How do you see this project in future?
Dear Mohammed Esa,
Go to D-mall next to Giga mall which is much better option.
Regards
Nadeem sb, welcome back with your valuable suggestions.
The D-mall option is looking attractive, lot of commercial already there and then huge Giga mall, please advise if you think still there is room for another mall in same area.
Moreover please share the pace of construction.