10 Top Reasons Why You Should Invest In Property In Karachi
Buying property in Karachi, Pakistan, can be a rewarding experience. This is the only country where you will find an abundance of real estate and investment opportunities. Karachi is popularly known as the city that never sleeps because it has so many people coming and going all day long. In fact, there are more cars on the streets than residents! The city is also one of the most cosmopolitan places to live in South Asia with its rich cultural heritage and thriving economy.
Investing in property here is no longer just about making money but creating wealth for your family through stable income streams. As opposed to buying property in other countries, purchasing land or buildings in Pakistan comes at a fraction of the cost. Land prices are low and rentals make up less than half of what they would cost elsewhere. There is virtually no capital gains tax in Pakistan unlike India which makes it attractive to foreign investors who want to avoid paying taxes on their investments.
Here are some reasons why buying property should become part of your financial strategy:
- Safe Investment
Property prices have been increasing at an alarming rate over the last few years due to political instability and economic uncertainty. It is wise not to invest in unstable markets or countries; however, investing in safe properties like those found in Karachi makes sense if you want to build up a substantial amount of wealth. Buying property here means that your investments will be secured against any kind of market fluctuations. Even though inflation rates are high, they do not affect property values much since most homes have already been built with high-quality materials. You can expect a decent return from these properties which would help you grow your assets faster.
- Higher Returns
When compared to other cities around the world, the returns on investment in Karachi are higher. Property prices here have been rising steadily every year and this trend looks set to continue. If you buy property now, you stand to make significant gains in the future. Your investment could pay off handsomely after five to ten years when the price of land starts falling. However, you must remember that the capital appreciation is directly proportional to the rise in property prices. So, the earlier you purchase, the better.
- Low Cost of Living
Karachi offers low cost of living for families who have come to stay permanently. Most of the time, rental costs are lower than what you would pay for similar accommodation elsewhere. Renting a two-bedroom apartment for example, might cost anywhere between Rs. 25,000 to 30,000 per month. Buying a similar property in another city would probably cost you three times more! With a good job, your family can comfortably afford to live here without worrying about their finances. For those who have come to work temporarily, renting may still be cheaper than paying rent elsewhere.
- High Return on Investment
There is a reason why property prices in Karachi are so high. As mentioned above, property prices here have been on the rise every year. In addition to that, most of the land here is available for sale and the supply of land is quite limited. This gives you a great opportunity to earn a high return on investment. A property bought for Rs. 1 million today will fetch a price of Rs. 3 million in five years’ time. That’s an increase of almost 400%! There are other factors too which contribute to the higher prices of properties in Karachi. These include a large population of expatriates who are looking to move back home, a booming construction industry, and a growing middle class.
- Good Rental Returns
If you buy a property, you can expect a good rental yield. In fact, most of the property owners here prefer rentals to sales. This is because rentals give them regular cash flow and don’t require any maintenance. If you plan to live in a property, then it makes sense to consider selling it only after some years. Also, if you have purchased multiple properties, then you can split the rent among yourself and your family members.
- Easy Access
You can easily commute to work in Karachi by public transport. Taxis are also cheap and reliable. Bus services are frequent and easy to use. All this means that you can save a lot of time and effort when commuting. Public transport also helps reduce pollution levels and traffic congestion. The bus system is extensive, with buses running every few minutes during the day on most routes. Most people have their own vehicles which they use for personal trips.
- Great Opportunities for Businesses
Many companies choose to establish their businesses in Karachi because of its strategic location. The port area is close to major international airports, and the city boasts a huge pool of educated, skilled, and motivated workforce. Many multinational corporations also operate branches here. Companies such as Nestle, Coca Cola, Unilever, and Pepsi have their headquarters in Karachi. This makes it easier for you to get your products into the market quickly.
Karachi has many industrial areas that are being developed with the help of private investors. These include Manghopir Industrial Area, Baghbanpura Industrial Estate, Korangi Industrial Park, and Gulshan-e-Iqbal Industrial Area. In addition, there are several small factories scattered throughout the city. Some examples include Cadbury’s chocolate factory, United Mills textile factory, Gillette soap factory, and Procter & Gamble pharmaceutical factory.
- Cheap Property Prices
The prices of property in Karachi are significantly lower than those in other cities. This is mainly because the supply of land here is very limited and demand is high. Also, most of the land in Karachi is undeveloped or unoccupied. So, there is a lot of scope for investors to buy property here and sell it later at higher prices.
In addition, since the city’s population has increased so rapidly over the past few years, many properties have become vacant due to their owners moving out. These factors combined with the fact that real estate transactions are not transparent means that buying property in Karachi can be an extremely profitable venture.
- Safe Investment Options
Buying property in Karachi is a safer option than investing in stocks or mutual funds. Stock markets are highly volatile and unpredictable, while real estate is relatively stable. The government of Pakistan has recently introduced new rules and regulations to curb speculation in property. In addition, property prices are likely to remain high in the near future.
A large number of expatriates have already made their homes here permanently. They are willing to pay a premium for good properties with great locations. This means that they will not be easily swayed by fluctuations in market prices. Even if the price does drop slightly, it may only be temporary. As long as there are buyers who can afford such prices, then demand should continue to rise.
- Stable Economy
As mentioned earlier, the economy of Karachi is thriving. It is one of the largest economies in South Asia and the second largest in the Middle East. The city is a hub for business and trade in the region. The stock exchange is also considered to be one of the best in the world. Due to all these reasons, property prices in Karachi are expected to keep rising.
The population density in Pakistan has increased by over 50% since 1990. As such, the number of people living in urban areas has doubled from about 20 million to 40 million. This means that there is an enormous demand for housing units in the country. In fact, it is estimated that there will be another 2 million houses being built every year between now and 2020. These figures alone indicate how much this market can grow if allowed to do so without any interference or regulation.
Final Words
Investing in property in Karachi is a smart way to grow your wealth. Buying property in the city is a good idea if you want to invest in something that will not lose value in the long run. Investing in property here is also a safe bet since you are purchasing a piece of land that is secured against any kind of market fluctuations.
To ensure you make the right decision, you should always seek expert advice from a reliable agent. They can guide you through the process and provide you with all the necessary information. So, before you decide to buy property in Karachi, do your research first. Ask questions and gather as much information as possible. Only then can you take the right steps towards making your dream of owning a property in Karachi come true. Let us at SHAARIQ make this search easier for you! Contact us today and let our expert real estate agents help you out.
