In the last few years, tow investing trends have emerged in Pakistan that promise a high ROI and are ideal for investors with limited budgets.
Renting out vacant plots. An increasing number of investors are purchasing vacant plots in the suburbs of Islamabad, Karachi and Lahore; plot sizes usually range between 300 and 500 square yards. The cost of these plots is 13 to 18% lower when compared to those in the city centre, and their resale value increases by 20 to 25% within three to five years.
Vacant plots can be rented out as kitchen gardens to grow vegetables and fruits and can also serve as poultry farms. Another popular trend is to rent them out for celebratory occasions, such as weddings and birthday parties, as well as for weekly bazaars, book fairs and food festivals. Facilities on offer include security, temporary electricity connections and valet parking.
Purchase price range: Rs 20-28 million
Daily rental range (for an event): Rs 30,000-75,000
Daily rental range (for agricultural use): Rs 200-400
One-hall structures. The trend of constructing single-storey halls on plot sizes ranging between 500 and 1,000 square yards is also used to host parties, exhibitions and other events; they are also used as art galleries, gyms and tuition centers. Construction costs range between Rs 800,000 and 1.2 million.
Purchase price range: Rs 20-28 million
Monthly rental range: Rs 50,000-70,000
Areas where vacant plots are available include: Sectors E-11 and F-11 (Islamabad), Phases VII and VIII, DHA (Karachi) and Phases V and VI, DHA (Lahore).
By Uzma Khateeb Nawaz
