The best property investment in Lahore, a popular investment vehicle, has seen tremendous growth in the last decade. This is why Indians continue to gravitate to their field despite the complex nature of real estate investing. Experts advise that building wealth through real estate investment requires careful analysis of the market, options, preferred locations, and the pros and cons of each. To make a profit in the real estate market, you need to choose the property that best suits your needs.
Purpose of investment
Before looking for a suitable home, an investor should clarify the best property investment in Lahore objective. Do you want regular rental income or are you more interested in capital gains? Rising prices are the preferred route for long-term investors with a higher appetite for risk, who focus on developing locations as opposed to rental income, and who prefer areas with easy access to basic services.
Amit Wadhwani, Director, of Sai Estate Consultants said; “Areas with sound infrastructures, such as those near railway stations, metro stations, markets, etc., will always bring higher rents and price hikes.” Those looking for rental investments should focus on areas that already have good connectivity and social infrastructure, while long-term investors are better off exploring emerging corridors and urban suburbs that are likely to receive infrastructure upgrades in the near future.
Investors should also decide which sector is right for them based on their risk tolerance, budget, and overall investment portfolio. Residential, office, commercial, and retail properties each have their own advantages and disadvantages that should be carefully analyzed.
In addition, investors also have to choose between under-construction and completed projects, as well as new and existing homes. Wadhwani points out that custodial units have advantages such as zero risk of delays, immediate rental returns, service tax, and value-added tax (VAT) savings, which can save up to six percent in most Indian states. On the other hand, under-construction properties can be purchased at lower prices and benefit from tax benefits on home loans, but pose significant risks given the dynamic nature of the market.
The land is also an attractive investment option due to higher capital growth, direct ownership, lower costs, and hassles. However, like any other asset, land has its drawbacks, the most notable of which are the lack of tax revenues, financial support from banks, and short-term profits.
Buying at the right price is a harmonious part of investing in real estate to achieve an attractive return on capital. Investors need to find a property that meets all of their needs while staying within their means. Experts say that while development in cheaper areas is likely to slow, already expensive areas have less room for future price increases. As a rule of thumb, industry experts advise savvy buyers to choose a property where the price comes down to Rs 2,500-5,000 per sq ft to protect against price erosion.
Choosing the wrong developer can be just as disastrous as choosing the wrong location, experts say. So, buyers should do their due diligence on the developer to find out their credibility and track record. With the Real Estate (Regulation and Development) Act in place, developers now have higher compliance requirements that will weed out overnight and fraudulent operators. Greater transparency in the market should make it easier for buyers to choose the best developers and projects.