Real Estate | Blog | Real Estate | 2022
 

Real EstateReal Estate

March 30, 2022by ESPA0

Contents

  • What is Real Estate?
  • Types of Real Estate
  • Residential
  • Commercial
  • Land
  • Industry
  • Various Aspects of Real Estate
  • Development
  • Sales and Marketing
  • Valuation
  • Lease
  • Property Management
  • Real Estate Industry of Pakistan
  • Karachi
  • Islamabad
  • Lahore
  • Real Estate Consultants
  • Conclusion
Real Estate

Real Estate is an industry that deals in the production, manufacturing, distribution, selling, marketing, research, and development of the real property.

The real estate industry covers many aspects of property, for instance, development, valuation, marketing, sales, leasing, and management of commercial, industrial, residential, and agricultural properties.

It is an important part of the national economy and it has a great effect on the growth of the economy of any country. For instance, the Real Estate market affects the economy in three ways: First of all, it is the direct production of housing construction projects.

Furthermore, the indirect production from housing projects, for example, consumption of construction materials, transportation, and use of other related industries. And lastly, it is related to Real Estate services, such as buying and selling services, leasing and renting services, financial services, and the services related to house management.

 

real estate

Types of Real Estate

Real Estate has been divided into the following categories based on its particular functions and distinctive features.

  • Residential
  • Commercial
  • Land
  • Industry

 

  1. Residential

Residential properties are one of the most important types of real estate for investment purposes. It is the best starting point for ambitious real estate investors, as it has lower entry costs and may be easier to acquire financing than commercial real estate.

It contains housing for individuals, families, or groups of people. Most people are familiar with residential real estate as it is a basic need of humans as well as the most common type of estate and the asset class. It includes any property that is used for accommodation purposes, such as single-family homes, apartments, condominiums, townhouses, and other types of living arrangements.

Residential property has become a more accessible investment option to the people as it can be purchased on a reasonable down payment.

  1. Commercial

Commercial Real Estate is another major type of real estate for people for investment. It is such a property that is mainly used for business and investment purposes. It includes commercial buildings that are mainly used for commercial purposes, such as apartments, hotel suites, offices, shopping malls, medical centres, stores, etc.

Commercial Real Estate’s prime focus is on generating profit either from capital gain or rental income. Moreover, you can make money by leasing or reselling your commercial property.

  1. Land

The land is the basis of all types of Real Estate. Generally, it refers to undeveloped property and unoccupied land. Developers acquire land and combine it with other properties (called assemblies) and re-zone it so that they can increase density and increase property value.

It includes farmland or fields, and land without any advancement of commercial or residential property.

 

  1. Industry

Any kind of land and buildings which are used or appropriate for industrial activities. Industrial activities include; production, manufacturing, assembly, warehousing, research, light storage, distribution, and some related office requirements for solid goods rather than service-related customers.

These buildings are not as attractive as other types of Real Estate, such as sparkling skyscrapers, high-rise buildings, high-standard housing societies, shopping malls, etc. However, industrial real estate is important because these properties are industrious, most productive, and work tirelessly for the industrial economy.

Various Aspects of Real Estate

 

  • Development
  • Sales and Marketing
  • Valuation
  • Lease
  • Property Management

 

  1. Development

Real estate development is such a process where raw land is purchased, rezoned, construction is being carried out. Besides, it includes the renewal of buildings and the sale or lease of finished products to the end-users. Various developers make a profit by increasing the value of the land through the building, improvement, rezoning of properties, and risk financing of a project. There are many development companies that develop a new product, which can be thought of as a “core market” or a generation of new inventory.

  1. Sales and Marketing

Sales and marketing are two major business aspects in Real Estate, as they both have a great effect on lead generation and revenue. The term sales refer to all the activities that lead to the sale of goods and services whereas, marketing is such a process to attain the interest of people in the goods and services that are being sold.

Moreover, through marketing strategies, you can promote your value proposition to the general public to build a brand, attract more customers, and increase sales and revenue through transactions. On the other hand, Real Estate Sale is a transaction between a buyer and a seller in which goods and services are exchanged for money or any other assets.

Besides, Sales and marketing firms work with developers to sell the buildings and units they build. These firms receive commissions for using their sales agents to create all marketing materials and to sell the inventory of completed units. These firms usually focus on new units.

  1. Valuation

Property valuation is the method that controls the economic value of real estate. Property valuation is usually pursued to regulate the reasonable market value, the price at which a well-informed seller sells his property, and a well-informed buyer will buy it willingly.

Furthermore, a property valuation report is issued to the property owner stating the condition of the property and its market value. This report helps the buyer and the seller estimate the value of the property.

The purpose of the valuation of property is to track the level of effectiveness of your strategic decision-making and to provide the ability to track action not only in terms of revenue but also in terms of the estimated change in value.

  1. Lease

A real Estate Lease is a legal, binding agreement that outlines the terms under which one party approves to rent the property owned by the other party. It promises the tenant to use the property and guarantees regular payments to the property owner or landlord for a specified period.

Residential leases are the same for all tenants; however, there are many different types of commercial leases. The consequences of breaking a lease can range from minor to damaging; it depends on the conditions under which they are broken. Some secure groups can void their leases without any penalties, which usually require some form of proof.

  1. Property Management

Property management is one of the significant areas of Real Estate that helps property owners to rent units or buildings. It includes tasks such as collecting rent, showing units, fixing issues related to property, repairing and managing tenants. They charge property owners a fee, usually one per cent of the rent.

Property managers are usually responsible for the stable running of real estates, such as screening residents to repair and maintenance arrangements. Owners pay a fee to property managers or else a percentage of the rent they receive from the property.

 

real, real estate , real estate development

 

Real Estate Industry of Pakistan

 

The Real Estate Industry of Pakistan is booming at the moment and it has changed the country’s destiny by contributing to its economy. Various other industries related to Real Estate, such as cement, steel, furniture, and wood, depending on real estate for construction purposes. They contribute 9% to the GDP of Pakistan. Therefore, if GDP grows, the real estate market grows, and investors will be more concerned regarding property Investment.

 

Pakistan’s real estate industry is full of lucrative investment opportunities. There is a definite chance of getting a high return on investment, if you buy a property for sale, a house for sale, or invest in a commercial project for capital gain. It is guaranteed that you will get an immediate return on investment and can protect your future financially.

 

Real Estate is the most common type of investment activity in Pakistan. Essentially, it involves buying plots for investors and holding them up until prices rise. Over time and with further project development. This plan, as a whole, can be very profitable.

 

Although each city has a significant value in its offerings and investment opportunities, the top three cities in the country for real estate investment are as follows:

 

  • Karachi
  • Islamabad
  • Lahore

 

Karachi is well known as the economic engine of Pakistan. The highly emerging real estate projects consist primarily of high-rise apartments, shopping malls, plazas, etc. However, there is also enough vacant land for housing schemes or residential projects. Some of the renowned Real Estate companies in Karachi are; Turkpark consultancy, Sky Builders, and Real Estate, Bahria Town Karachi, etc.

On the other hand, Islamabad is a well-organized city that is divided into various zones and sectors. The city is home to the Faisal Mosque (the largest mosque in South Asia and the sixth-largest in the world by area). In the last decades, large-scale development of the city and the infrastructure of various projects can be observed. The most notable projects are; Centaurs, New Islamabad International Airport, and World Trade Center. Islamabad is a hub of various Real Estate Companies that provide consultancy services and are dealing with several projects. Some of the well-known Real Estate Companies include Zameen, Graana, ESPA Builders, Zem Builders, etc.

The Real Estate Industry is growing at a fast pace in Lahore and it is offering various commercial as well as residential investment options to investors. Lahore has appeared as one of the most profitable cities for Real Estate investment. The Lahore Development Authority (LDA) is responsible for newly planned development in Lahore. It legalizes and issues permits for new construction and housing projects, private homes, and commercial development. Some of the common Real Estate companies in Lahore are Lahore Real Estate, Zameen.com, DHA Lahore, etc.

Real Estate Consultants

A real estate consultant is someone who is familiar with Real Estate and gives special investment advice to clients who are looking to buy, sell or invest in a Real Property. They work with people throughout the process of buying and selling real estate. Unlike a traditional real estate agent, a real estate consultant is completely optional.

Real Estate Consultants offer additional services to their clients; it includes market analysis, lease management, and asset management. Consequently, real estate consultants work with a wide variety of clients, including construction companies, business owners or third-party investors such as banks or credit unions, and even financial lenders.

In Pakistan, there are many Real Estate Consultants as well as companies offering free services related to investment in property and helping them find the best property of their choice to invest in. For instance, Graana, Zameen, ESPA Builders, Agency 21, etc. are some of the renowned Real Estate companies that offer consultancy services to their clients.

Conclusion

This article has precisely described the scenario of Real Estate and its related components. As Real Estate is a category of “real property” that includes land and anything permanently attached to it, whether natural or man-made. There are four main types of real estate: residential, commercial, industrial, and land. You can buy a house, rental property, or other property and invest directly in real estate. Investment in Real Estate is considered the safest investment option compared to others as it gives a high return on investment. So, you should consider investing in Real Estate when it comes to investment.

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