Capital gain on real estate sales after a certain time period approximately 5 years. Avoid investing in areas where the government provides subsidies.Such as Karachi, where the government provides subsidies to people living in subsided.Real estate prices ,Karachi Rent Control Act 2013. DHA Lahore offers free 99-year leasehold rights on all its residential plots and apartments. The real estate sector in Pakistan is booming. Real estate investments are one of the main economic pillars.
The real estate market has seen an increase in prices. That can also be attributed to the demand and supply theory. The real estate markets of cities. Like Lahore, Islamabad, Karachi, Faisalabad have been facing a shortage of plots. Due to increased construction activities.Whereas real estate is available at lower prices. In other cities, where the real estate markets are not as developed as compared to major cities. Real estate investment outperforms all other asset classes. In the Equity Investment category.Particularly for short-term investors. It gives higher returns with low-risk exposure.Little capital required for investment.If you invest 1 million rupees today by purchasing any real estate.Then after 3 years you sell it.You get the real value of your real estate investment with inflation rate matching.
Best time to Invest
In the stock market, real value can’t be decided.Because its share price can go down.As well as up along with an increase in the inflation rate.So, the real value of your investments also decreases with inflation. As real estate prices have been going up for the last few years.It is now a very good time to invest in real estate.Especially flats, small houses, and land properties.Because, they are available at reasonable rates in major cities.Due to the shortage of real estate there. Real estate prices will also continue to rise for some more time.Before stabilizing as compared to other asset classes.Stocks as the real estate sector is still developing in Pakistan. Real estate prices have been on the rise for the last few years. In this regard, real estate investment is a superior investment.As compared to all other alternative investments.As the real estate sector is quite stable and usually provides positive results. Whereas the stock market industry has more risk involved.Which can yield negative results.
Real Estate Investment in Pakistan
Possession of real property gives a title to real estate.That cannot be taken away unless it was previously agreed upon by a contract between the parties. This private property ownership requires a government permit called a land grant.For there to be a legitimate claim of ownership on the real property.Before obtaining real rights from the state itself. In most countries today, these two types exist concurrently.But under differing legal rules and conditions, depending on the country.