The real estate market is always thriving. If it's not a buyer’s market, it is always a seller's market and when it is not a seller's market, it is the buyer’s market. This means that buying and selling of real estate is a constant phenomenon. However, there are ups and downs in the market that are not very easy to track for a novice or a first-time investor. Therefore, it would be prudent to get acquainted with real estate market trends to make sure that you land on your feet every time you invest.
Real estate is a dynamic market which means something is always changing. To protect your investments or to make more profitable ones for the future, it would be ideal to learn about some factors of Pakistan's real estate market. The following are the five major influencing factors that can bring changes in the market and any watchful investor should be aware of them.
Factors affecting the real estate market:
1. Consumer affordability
Property values increase fast in Pakistan but this rate is directly affected by consumer affordability. Their affordability increases with increasing opportunities for jobs, start-ups, and freelancing and the graph goes up. With this increase in general income, the demand for residential properties goes up. When the demand increases, so do the prices. This is especially the case for big cities. The rural areas do not expect this change as there is no significant fluctuation in the affordability graph in that area.
Demography plays a vital role in the real estate market. It directly affects the buying and selling trends of property. This means that buying property in a certain location is not the same as buying property in a different location, for example, big cities or villages have different trends i.e. pricing for buying property. It may also vary within the same city as certain locations are more feasible and high in demand for buyers looking for luxury and exclusive amenities. Then there are those locations that are in demand because of affordability. This means that property interests among buyers also change according to their affordability.
3. Rate of interest
Purchase of residential property involves a lot of amounts especially in a big city like Lahore. A lot of people have to turn to banks for financing or loans to make their dreams of a perfect house come true. This type of financing carries interest which tends to fluctuate. This may cause a lot of problems for the buyers as even minor changes in the interest rate to translate into big payment differences. Installment properties face the same issue when people buy houses or apartments on installments in Lahore. They have to pay interest on it and if this interesting value is variable, their budget calculations to make payments for the installments will get disturbed.
4. Foreign investment
Whenever there are major real estate development projects as Etihad Town, a significant rise in foreign investment from overseas Pakistanis is observed. Major real estate projects get a lot of investment even while they are under development. An increase in foreign investment also boosts local interest in real estate projects.
5. Budget and taxes
Real estate investors face a lot of restrictions in the property market. Various economic irregularities make the matters worse. But in Budget 19-20, the new government put forth great policies for real estate investors. Please reforms made the market today fair for investors as well as more safe and profitable.
A lot of people in Pakistan invest in real estate but it is not always possible for them to keep up with all the Trends of this market therefore it would be helpful to know all the important things that may directly affect their decision of investment in any significant way. The influencing factors mentioned above are important and it is a good idea for an investor to keep an eye on them. This way they can stay ahead of any changes in the market and protect their investment and make them more profitable. However, certain qualities make any real estate investment, worth your while. Some important qualities of residential investment properties such as houses or apartments for sale in Lahore are given here.
· Prime location to boost property values in a long run
· Properties within a gated the residential community are preferred
· Availability, both approval, and provision of utilities such as electricity, gas, water
· The security that comes as a package deal with high-end residential communities such as Etihad Town
· Proximity to all the local attractions such as markets, malls, restaurants, cafes, cinema
· Proper allocation of community sources such as a community center, a mosque, playgrounds, etc
All of these are important qualities to have in a luxury residential property. Such properties are ideal for a personal residence, for renting to develop additional revenue streams, or to resale after a while when their value increases. The amenities in luxury residential properties like modern apartments for sale in Lahore boost the value of a property and make it more profitable for the investor. So, keep an eye on the changing trends in the real estate market. This increment in value for the high-end properties makes them sound and beneficial investments for your future by selectively buying the properties that offer the greatest value.