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.

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