Karachi or Islamabad- Where Should You Invest in Real Estate?

If you are looking for a place to invest in real estate, then you have come to the right place. We will discuss some of the important factors that need to be considered before making any investment decision and we will also give you some tips on how to make the most out of your money. 

We all know that investing in real estate is one of the best ways to make money. However, this does not mean that it is easy to do. It requires a lot of patience, perseverance, and foresight. There are many people who try to make quick bucks by buying property without considering its long term benefits. This is why they end up losing their money and become bankrupt. So, if you want to invest wisely, then you must first decide where you want to invest in. There are two major cities in Pakistan that offer great opportunities for investors: Karachi and Islamabad. 

Both these cities are home to a large number of expatriates as well as local citizens. These people come here from different countries for work and study purposes. They are attracted by the fast growing economy of both the cities and thus, they choose to settle down here. If you are planning to invest in real estate, then you should look at these cities because they have a high demand for housing units. 

In addition, both the cities are developing rapidly. The infrastructure facilities in both the cities are improving day by day. This means that there is an increasing demand for homes and apartments in these cities. This will lead to an increase in the prices of properties. Therefore, it is always advisable to buy property in areas that are less developed so that you can reap maximum profits from your investment. 

Karachi has a lot of old buildings that are dilapidated. These buildings were built during the British Raj era. Many of them are crumbling and require repair and renovation. Due to this reason, the cost of living is very low in Karachi compared to other cities in Pakistan. On the contrary, Islamabad has many new buildings that are being constructed. As a result, the cost of living in Islamabad is much higher than in Karachi. However, due to the presence of international schools, hospitals, and universities, the price of land in Islamabad is relatively lower compared to Karachi. 

You should also consider the climate of each city. Both the cities have a moderate climate throughout the year. This means that there are no extreme weather conditions in either of the cities. Moreover, both the cities receive heavy rainfall during monsoon season. Thus, you can expect regular rains every year in these cities. The rain water drains into the sea and reduces the salinity level of the seawater. This affects the marine life and causes fish deaths. If you are planning to build a house in these cities, then you should be prepared for frequent flooding and the consequent damage caused by floods. 

If you are planning to invest in real estate, then you should always check the local laws regarding taxes and charges. Each city imposes different taxes on the properties. For example, Islamabad has a property tax whereas Karachi does not. Some cities impose a municipal charge for garbage disposal. If you are planning to purchase property in a particular city, then you should check the local laws and charges carefully. 

Another factor that you should take into consideration while investing in real estate is the availability of power supply. Both the cities have good electricity networks and this ensures stable and uninterrupted power supply. However, the distribution network of Karachi is not as efficient as Islamabad’s. Therefore, you may experience problems with the quality of electricity supply in Karachi. 

Another important aspect to consider when investing in real estate is the location of the property. If you are looking for a property in Karachi, then you should check the locality and find out whether it is near the main roads and markets. In addition, you should check if there are lots of shops and restaurants nearby. Similarly, if you plan to invest in Islamabad, then you should check the area that you want to purchase property in. Make sure that it is close to schools, hospitals, and shopping centers. 

Lastly, you should also check the security situation of the area. If you are planning to invest in a property in a highly populated area, then you should check the safety and security of the neighborhood. You should also check if the police station is located in the vicinity of the area. If you are thinking about purchasing a property in a remote area, then you should check if the area has a well-equipped police station. 

Karachi 

Karachi is a cosmopolitan city and is divided into various districts. Each district has its own distinct character and culture. The posh areas of Karachi such as Clifton and Defence are very expensive and are frequented by foreigners and expats. The posher neighborhoods in Karachi include Garden East, Model Town, PECHS, Kiamari Town, and Landhi. All these areas have been developed by the rich expatriates. 

On the other hand, the cheaper areas of Karachi such as Orangi Town, Jamsheed Town, Korangi, and Liaquat Bagh are inhabited mostly by locals. Most of these areas are located near the port and are home to laborers and workers. 

The commercial areas of Karachi are located along the busy Jinnah Road. The major commercial areas of Karachi are Saddar, Nazimabad, Korangi, and Lyari. These areas are popular among tourists as well as expatriates. The residential areas of Karachi are located in the suburbs of the city. 

There are several sub cities in Karachi. These sub cities are called townships. They are situated on the outskirts of the city and are not connected to the main road system. These townships are usually home to low income residents. However, some of these townships are also home to middle class people. 

If you are planning to invest in real estate, then you should consider the type of property that you want to purchase. There are three types of property in Karachi: flats, plots, and houses. 

Flats are small apartments that are rented out to the tenants. They are located in the posher areas of Karachi. They are not suitable for families or couples. However, they are ideal for single professionals. 

Plots are large plots of land that are bought by developers and then subdivided into smaller blocks. These are sold to individuals and are often used as investment properties. 

Houses are large detached homes that are available for sale. These are the most common type of property in Karachi. They are usually located in the posher areas of Karachi. Houses are also rented out to tenants. 

The best time to invest in real estate in Karachi is between April and June. During this period, the demand for property is high due to the influx of tourists and expatriates. 

Islamabad 

Islamabad is the capital city of Pakistan. It is also the largest city in the country. Its population is around 8 million. It is the second most populous city in South Asia after Mumbai. Like Karachi, Islamabad has a large number of expatriates and locals. The expatriates in Islamabad are mainly from India and China. The locals are from different parts of Pakistan. Islamabad has many international schools and colleges. These schools and colleges attract students from all over the world. 

As a result, the demand for property in Islamabad is very high. In addition, the cost of living in Islamabad is much higher compared to Karachi. This is because the infrastructure facilities in Islamabad are better than those in Karachi. The property prices in Islamabad are also comparatively higher than in Karachi. 

The best time to invest in real estate in Islamabad is between September and December. During this period, the demand for property is low. The reason for this is that most of the expatriates return to their home countries during this time. Some of the major areas in Islamabad include Bahria Town, G Block, Jati Umra, Faisal Colony, New Mughals, and Waziristan. The posh areas of Islamabad are located on the outskirts of the city. The posh areas of Islamabad are also known as ‘New Islamabad’. These areas are home to foreigners and expats. 

The commercial areas of Islamabad are located along the main roads. These areas are famous for their luxury shops and boutiques. Some of the major commercial areas of Islamabad include G Block, Fakhr e Alam, Model Town, SITEF, and Clifton. These areas are frequented by foreigners and expats. The residential areas of Islamabad are located in the suburbs of the city. 

There are several sub cities in Islamabad. These sub cities are called townships. They are situated on the outskirts of the city and are not connected to the main road system. These townships are usually home to low income residents. However, some of these townships are also home to middle class people. 

Final Words 

Both these cities are home to a large number of expatriates as well as local citizens. These people come here from different countries for work and study purposes. They are attracted by the fast growing economy of both the cities and thus, they choose to settle down here. If you are planning to invest in real estate, then you should look at these cities because they have a high demand for housing units.