During the run-up to Eid-ul-Azha, a significant number of plots are rented by people who establish animal market or shelters there. Consequently, the demand for plots increases by nearly 12 to 15 % while rental yields appreciate by nearly five to seven percent. As no investment is required with regard to constructing markets or shelters, renting vacant plots is a lucrative short-term investment options for plot owners, offering an estimated ROI (return on investment) of 29 % within a month.
If you are thinking about renting a vacant plot, factor in the following: Animal markets. *Vacant plots in commercial areas can be rented for setting up temporary animal markets, after obtaining written permissions from the relevant local authorities (including CDA, Cantonment Board, DHA, KDA and LDA). *Market are usually set up for one to four weeks. *Average weekly rental range between Rs 50 to 100 per square yard.
*The rental does not include the cost of setting up tents or utilities and amenities including electricity, water and security. *To avoid illegal encroachment and land occupation, it is best to have a written rental contract signed by the person(s) who is renting the space. *It is customary to take 30% of the rent in advance; the remaining 70% is settled at the end of the rental period. Animal Shelters. *Vacant plots in residential areas can be rented out as shelters for sacrificial animals.a.
*Shelters are usually setup for anywhere between a day up to a week. *Space in shelters is usually rented by residents of the neighbourhood who pay a fee of Rs 200-500 for the care and upkeep of each sacrificial animal. The fee includes animal upkeep costs (including food, water and shelters) as well as security.
By Uzma Nawaz. Information provided by Zameen, Lahore, and Citi Association, Karachi.