An increasing number of people in Pakistan are interesting in commercial property. This is due to the fact that the annual return on investment (ROI) on such properties ranges between 12 and 22%, making them lucrative investments.
If you are considering investing I a commercial property, keep the following option ion mind.
- Small retail spaces. One of the most profitable investment options are standalone shops or retail space that are made available on rent. Once you purchase such a property, you will have a tenant on board from day one and this will ensure a fixed cash flow. The ROI ranges between 12 and 15% per year.
- Vacant plots. For investor who cannot afford a built-up commercial property, investing in a vacant plot is an option worth considering as their price is usually 10 to 15% lower than built-up properties. Vacant plots can, without investing too much money, yield an annual ROI of to 20% if rental out as nurseries, marriage venues or parking space.
- Large commercial properties that require renovations. If you have a sizeable amount to invest, consider buying a large retail space or standalone shop, a warehouse or a school, which has either been partially contracted or needs to be renovated. After you buy the property, renovate it, and either rent or sell it at a higher rate. Another option is buying a regular office space and redesigning it to include contemporary facilities such as recreational lounges, coffee shops, gardens and fitness centres, this option ensures an annual ROI of 18 to 22%.
By Uzma Khateeb Nawaz
August 25, 2018