Real Estate

Real Estate Markets – Features and Attributes

In this new wave of development and improved security conditions in Pakistan, real estate is a noun that has gained immense popularity and importance in a short period of time. The emergence of numerous residential and commercial projects, providing high level living standards and state of the art facilities, has earned this market the required credibility. Increased customer trust and the supplier’s undoubted commitment have resulted in a booming market. Highlighted below are the typical features of a real estate market that may increase the risk factor or result in your investment being more profitable.  

Varying trends is a constant feature of the real estate market and something that should be accounted for before making any transaction or deal. Just like the implementation of 2015-2016 Federal Budget, eased taxation constraints, providing favorable grounds for investments in the real estate market, the introduction of the following year’s budget had the opposite effect.

While other markets, such as the market for commodities and the stock market are regulated with as much transparency as possible, the real estate market does not enjoy the same advantage. Lack of transparency due to inefficient market analysis and withheld information by real estate workers/property sellers will put you investments at risk. However not all the real estate market features are risk bearing.  

Durability and tangibility of your investment in the form of a real estate property is another attribute of this market. Unlike stocks and other investments that reach maturity after a while, real estate investments can be long term, easily passed on to generations and managed according to your wishes, making it more rewarding.

Real estate is something that cannot be sold or purchased as easily as other investments, meaning it comes with low liquidity. Although low liquidity may be considered a risk when comes to investing your finances, in terms of real estate, it results in a positive impact. Being illiquid turns the real estate investment into a stable appreciating asset.

Like two sides to every situation, the real estate market also has its pros and cons. However with professional consultancy, thorough market research and informed decision making, the risk factor can be minimized and profitable returns can be maximized.

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