The State Bank of Pakistan estimates the current housing shortage in Pakistan at 9 million units, expecting an additional demand of close to 400,000 units being added to the existing shortage each year. While this opens up a massive window of opportunity for real estate developers and investors, not many businessmen see their investments bearing optimal fruit.
Here we discuss a few factors that should form the foundations of any real estate investor or developer’s plans, in order that the project stands out in the horde of options available to home buyers nowadays.
Security
A secure location is of foremost importance when investing in a property.These dynamics sometimes differ when one considers rapidly expanding cities like Lahore and Karachi. In densely populated metropolis like Karachi, security becomes the most attractive feature for developing a successful property project. In such a scenario, gated communities take the center stage as people prefer living in integrated communities that provide foolproof security measures.The trend is obvious in mega cities like Karachi. In Lahore, which has remained relatively more peaceful than the port city, gated communities have become extremely popular as they provide a secure setting for raising a family.
Localities where crime levels are low or non-existent will naturally attract more residents. So the next time you begin a realty project, make sure the locality you plan to invest in ticks the ‘security’ check box.
Provision of basic utilities
In developing countries like Pakistan where a large chunk of the population still resides in rural areas, uninterrupted supply of utilities such as electricity, gas and potable water is a blessing for most. Properties or housing communities that have power backup plans and reliable connections of natural gas and water and proper sewerage and drainage systems remain high in demand. One good example could be Bahria Town, which has raked in buyers by offering uninterrupted electricity supply to residents. So make sure your housing project does not lose the race due to this basic, but high-in-demand utilities.
Recreational and healthcare facilities
Investing in land or house that is close to recreational or healthcare facilities is a surefire way of getting good gains out of your investment. For major real estate developers, this factor has become imperative to generating a greater interest in the community.
Nowadays, provision of quality entertainment venues such as parks, food and beverages outlets and shopping malls along with modern healthcare centers are the necessary features of a successful property project. Modern housing societies in the country make sure to provide such facilities to the consumer, and if a real estate developer does on fact create a small city within a city that provides most basic necessities of life to residents, people will naturally flock towards these housing societies in pursuit of a complete living experience.
Education, Transport and Infrastructure
Providing quality education to children is one of the top priorities of households around the world. Parents would naturally prefer an educational institution that is close to their homes. Real estate developer, big or small, can capitalize on this need to drive sales and profits up.
Building a house near schools or developing housing societies that have schooling options can certainly add to the value of your investment.
And in case, a real estate project is located farther away from such facilities, ease of commuting to and fro such concerns and access to public transport will increase the importance of your project in the buyers’ minds.
Supply and demand circle
A developer or investor must take into account the timing of the project. Launching a mega hotel or housing society in a market segment already plagued by an oversupply of units will do you little good.
It is, therefore, important for property developers to stay in tune with the market trends and invest in areas or market segments that actually require new facilities for a growing population.
