The demand for studio apartments in Pakistan has increased by an estimated 15% in the last three years and this is partiallydue to the increasing number of students and tourists who are looking for affordable short-term housing options.
Studio apartments do not have walls and are in essence large rooms with open kitchenettes and a restroom. Standard sizes range between 550 and 650 square feet. The return on investment (ROI) of a studio apartment varies between 18 to 20% per year.
If you are thinking about investing in a studio apartment, here are the guidelines to keep in mind: The demand for studio apartments is highest in the metropolitan cities (Islamabad, Karachi and Lahore) as well as in second-tier cities, such as Abbottabad, Bhurban, Faisalabad, Hyderabad and Multan. Neighborhood’s where studio apartments are available include Sector F-10 (Islamabad), Clifton and Gulshan-e-lqbal (Karachi) and Phase VI, DHA and Mazing Road (Lahore).
Furnished studio apartments are increasingly available; their rentals are 12 to 14% higher compared to unfurnished ones.
Available facilities include janitorial services, round-the-clock security and Wi-Fi and are usually free of cost. The resale value of studio apartments is expected to increase by 10 to 12% within the forthcoming 18 to 20 months.Unlike regular apartments, most studio apartments can be rented for short periods, ranging between one day and three months.
Monthly rental ranges: Karachi: Rs 20,000-40,000; Lahore: Rs 15,000-25,000; Islamabad: Rs 18,000-30,000; Murree: Rs 15,000-25,000.Purchase Price ranges: Karachi: Rs 10-16 million; Lahore: Rs 8-12 million, Islamabad: Rs 9-14 million. Murree:Rs 7-10 million.
By Uzma Khateeb Nawaz. Information provided by Karachi Estate and Lahore Real Estates