Lucrative Commercial Property Investment Options In Islamabad, Karachi and Lahore

In the last three years, the demand for commercial property for rent is tremendously increasing (specifically restaurants, retail spaces, and warehouses). Rental commercial property rates have gone up by 20 to 25% and prices have been increased by nearly 30%. Despite this, demand for these rental spaces has increased by nearly 20%, making them lucrative commercial property investment options.

If you are planning to invest in a commercial property such as restaurant, retail space or warehouse, factor in the following:

1. Restaurants. The number of restaurants in Pakistan has increased by an estimated 30 to 38% in the last two years. Custom-made spaces for restaurants are in high demand and their return on investment (ROI) ranges between 25 and 35% per year.

Areas where restaurant space is available include:

• Islamabad: Sector F-10.
• Karachi: Tipu Sultan Road and Block 4, Clifton.
• Lahore: M.M. Alam Road

Average sizes range between 400 – 1,200 sq feet.

Purchase Price Range: $ 300,000 to 450,000

Monthly Rental Range: $ 5 - $ 12.7 per square feet

2. Commercial Retail Space. These include commercial shops and commercial stores within malls and shopping centers. Their number has increased by 18 to 20% in the last two years and their ROI ranges between 22 and 25% per year. Retail commercial space does not require a lot of investment and is relatively easy to rent.

Areas where commercial retail space is available include:

Islamabad: Sector F-10. Giga Mall, Aquatic Mall, and Gulberg Greens.

Karachi: Clifton and Defence Housing Authority.

Lahore: Block Y, DHA, Gulberg and M.M. Alam Road

Average sizes range between 500 – 1,000 sq feet.

Purchase Price Range: $ 230,000 to 650,000

Monthly Rental Range: $ 2 - $ 15 per square feet

3. Commercial Warehouses. Due to increasing industrialization, the demand for warehouses has increased by 12 to 15% in the last two years. Initial investment and maintenance costs are lower compared to other commercial spaces; this makes them a popular choice for investors. Their ROI ranges between 15 and 20% per year.

Areas where commercial warehouse space is available include:

Islamabad: Sector I-9 and I-10.

Karachi: Hub and West Wharf

Lahore: Multan Road

Average sizes range between 500 – 3,000 sq yards.

Purchase Price Range: $ 1,500,000 to 3,650,000

Monthly Rental Range: $ 6 - $ 27 per square yard.

A Valentine Gateway: Low-cost Accommodation Options to Celebrate with your Valentine

As a result of increasing tourism in northern Pakistan, the number of low-cost accommodation options for travelers, such as apartments, cottages, and villas (as opposed to regular hotels which are more expensive), is increasing significantly. Surrounded by majestic mountains, the return on investment of these options ranges between 15 to 18% per year; their resale value increases by approximately 22% every three years.

If you are considering traveling to the following destinations with your valentine or even later this year, or investing in property there, factor in the following:

·        Bhurban. Located between Kashmir Road and Murree Road, Bhurban is a picturesque town that is a 45-mnute drive from Islamabad. Attractions include Ayubia National Park, an expansive golf course and hiking trails. Apartments are increasingly available for short-term rentals; facilities include swimming pools and complimentary WiFi.

Rental range (per night) – Apartments: $ 70 to $ 100

Purchasing price range – Apartments (450 – 800 sq ft): $ 120,000 to $ 180,000

·        Pir Sohawa. Located 17 kilometers from Islamabad, Pir Sohawa overlooks Daman-e-Koh Park, a popular vantage point 3,600 feet above sea level. Options include apartments, cottages, and villas. In addition to fine-dining restaurants, they provide facilities such as gyms, spas and swimming pools as well as corporate lounges and conference rooms for business travel. Activities include high-rope courses as well as hiking and walking trails.

Rental range (per night) – Apartments: $ 20 to 50; cottages: $ 30 to 60; Villas: $ 70t o 90.

Purchase Price Range – Apartments: (1,300 to 1,500 sq ft) $ 50,000 to 70,000; cottages: (300 to 500 sq yds) $ 150,000 to 180,000; villas (800 to 1,000 sq yds) $ 270,000 to 300,000

·        Skardu. Located at an altitude of 7,500 feet, Skardy is enchantingly beautiful; it is a one-hour flight from Islamabad. There are several accommodation options there, the majority of which overlook the majestic Kachura Lake. These include luxurious suites in resorts and cottages; facilities include swimming pools, spas, and fine-dining restaurants.

Rental range (per night) – Cottage: $ 30 to 50; Suite: $ 70 to 100

Purchase price range – Cottages (250 to 350 sq yards) $ 170,000 to 220,000; Suite: (500 to 800 sq yards) $ 280,000 – 570,000