Sunday, November 27, 2011

Property Rentals on the Rise: Pakistan Property

Over the last two years, property prices have increased property prices have increased by 10 to 30%, while interest rates on home loans have increased by five percent. These two factors have inhibited residential sale and purchase in property Pakistan prices. As a result, demanded for rental properties has increased by 15 to 20% in the last two years and rents have increased by 30 to 35%. Although the annual rental rate of a property stood at three to five percent of the property's value two years ago, it now stands anywhere between four and seven percent.
If you are purchasing residential property Pakistan with the express purpose of renting it out, keep the following in mind: 

  • Select small to medium sized properties (200 to 500 square yards) in popular, secure residential areas because they are in higher demand, as a re properties located on main roads. 
  • Look out for houses that can be divided into portions for higher rental yields.
  • Choose houses that are well-maintained; you will be able to ask for a higher rent.
  • Apartments in complexes that are located on a corner plot facing a main road are preferable and yield higher rentals, as do apartments located on the first floor or second floor.
  • Apartments in well-maintained and smaller complexes (with 25 to 50 units), usually have higher rentals compared to larger complexes (with 100 to 200 units)
  • Although premium four-bedroom units may get you higher rentals, they are within the reach of many pockets; you are better off with a standard two- or three-bedroom apartment in a well maintained complex.
  • Facilities including UPS', generators, overhead water storage tanks and windows grills are an added advantage.

Sunday, November 13, 2011

Furnished Office Spaces

In addition to location, as well-designed office can make all the difference; the address, along with the interior decoration, can have a powerful impact on your company's image.
As buying office space is an expensive proposition for many companies, renting remains a preferred choice. Furthermore, for smaller enterprises and business concerns, investing in office furniture can be daunting especially in terms of cost and the amount of time spent on construction and design.
As a result, the trend of renting furnished and fully-equipped office spaces (with lighting, furniture, generators, ACs, PABX systems, fax machines and computers) has gained traction.
Rental rates for furnished office spaces are 25 to 30% higher than unfurnished offices and there is usually limited or no flexibility to adapt and change the interiors. Despite these drawbacks, there are many benefits to renting furnished offices.
These include:
  • A ready to occupy, furnished space is a hassle-free way to get a business up and running within a short span of time.
  • It is an ideal solution for new and/or small businesses that have limited funds and want to avoid spending money on furniture and decor.
  • Most furnished office spaces located within purpose-built office blocks provide shared amenities, including a reception, meeting foyers, boardrooms, lunch rooms, kitchenettes, security and restrooms.
  • Relocating a business becomes easier without the logistical worries of moving furniture and equipment from one site to another.
  • Professionally designed office spaces have floor plans that are conductive to productivity and enahnce the work flow.
The monthly rental rates, in rupees per square foot, of furnished offices in Karachi, Lahore and Islamabad are as follows:
City       Budget     Mid range  Premium
Karachi  90-115     120-200      250-500
Lahore    89-113    117-195      234-449
Islamabad 93-109   136-195      214-468

NB: Commercial property Rating
Premium: Office space ranging from 500-2,000+ sq ft;
Mid range: Office space ranging from 300-500 sq ft;
Budget: Office space below 300 sq ft.

Sunday, November 6, 2011

What Five To Ten Million Rupees Will Get You In Faisalabad, Pakistan

Faisalabad is Pakistan Punjab's second largest business center. The industrial and agriculture hub, located west of Lahore, has experienced an economic resurgence recently. This has resulted in substantial investment in real estate.
Here is a look at residential areas in Faisalabad priced between five and 10 million rupees, which are attracting investment from across Pakistan:
1. Sitara Sapna City is a project of the Sitara group. A turnkey housing project, it is located near the University of Agriculture and Allied Hospital. Amenities include schools, commercial zones, parks, a community center and underground electricity and telephone network.
Purchase price ranges for houses in Sitara Sapna City are:
Plot size (sq yds)                                                       Purchase Price (Rs)
300                                                                                8.2-8.5 million
450                                                                                9.5-10 million

2. People's Colony, an upmarket residential area on the western side of the canal and adjacent to Kohinoor Colony, is home to Faisalabad rich and famous. The fashionable shopping area, D- Ground, is located there.
Purchase price ranges for houses in People's Colony are:
Plot size (sq yds)                                                       Purchase Price (Rs)
150                                                                                5-7 million
210                                                                                7-8.7 million
300                                                                               8.5-10 million

3. Madina Town, was formerly an industrial area that has been converted into a fashionable, upmarket residential neighborhood. It is located near Susana and Jaranwala Roads; it has parks, commercial areas and schools.
Purchase price ranges for houses in Madian Town are:
Plot size (sq yds)                                                       Purchase Price (Rs)
210                                                                                5.3-8 million
300                                                                                7.6-10 million
390                                                                                9-10 million
450                                                                                9.5-10 million

4. Gulberg is an upmarket residential neighborhood. It is located near Faisalabad major commercial zones, minutes away from the Chenab Club, Faisalabad Clock Tower, Jinnah Gardens, Serena Hotel and the University of Agriculture. The National Hospital is also located there.
Purchase prices ranges for houses in Gulberg are:
Plot size (sq yds)                                                       Purchase Price (Rs)
150                                                                                6.7-7 million
210                                                                                7.6-8.4 million
300                                                                               8-10 million