Benefits Of Investing In High Rise Projects

Pakistan’s real estate sector has grown tremendously recently, especially in major cities like Islamabad, Lahore, and Karachi. One area that has attracted significant investor interest is high-rise projects comprising mixed-use buildings and luxury apartment complexes. Investing in such premium projects in Pakistan can be highly lucrative. Let’s examine the major benefits of putting your money on high-rise real estate in the country’s high-rise projects.

Increased Returns Potential

One of the biggest advantages of investing in high-rise buildings is the potential for higher rental incomes and capital appreciation compared to other asset classes in Pakistan. For instance, according to Numbeo, rents in Islamabad famous malls and plazas are among the highest in the country, ranging between PKR 65,000 and PKR 380,000 per month. Given their premium branding and facilities, anchored tenants, footfalls, and location, these shopping centers command a significant premium over standalone retail stores.

Diversification

Real estate allows investors to diversify their portfolios beyond traditional securities like stocks and bonds. Within real estate assets, too, high rises and malls provide specific diversification benefits. Retail and commercial spaces in such key projects lease out easily, provide steady cash flows, and fare better than standalone buildings even during market downturns.

Lower Operating Costs

High-riseHigh-rise mixed-use complexes and malls have centralized air-conditioning, security, parking, and maintenance systems compared to standalone buildings. It allows for economies of scale, helping save considerable costs across these facilities and services. Investors thus see higher rental income potential owing to lower operating costs per square foot for tenants.

Wealth Generation

Investment in premium high-rise buildings offers attractive wealth-creation opportunities in Pakistan’s property hotspots. Given the market potential, projects by top developers in prime locations tend to see above-average capital appreciation driven by rising demand and relatively lower supply additions.

Environmental Sustainability

High-rise buildings allow for greater density in terms of people living and working per square foot of land used. By building upwards rather than outwards, they preserve open spaces, parks, and agricultural land on the city outskirts from excessive construction activity. Thus, high-rises are more environmentally sustainable than horizontal expansion and urban sprawl.

Stronger Community Network

Integrated mixed-use towers allow residents to feel a stronger sense of community bonding. They can easily connect with neighbors, join community events in shared open spaces, and develop local friend circles more readily than in individual houses spread across a suburb. Stronger community ties for working professionals and retired seniors also bring mental health benefits.

Increased Development Potential

Projects offering virtual freehold ownership allow buyers purchasing an apartment to transform half the area into retail shops later if desired and feasible. It provides additional development potential to enhance returns by capitalizing on the high rise’s footfall, parking, and location advantages.

Increased Security

Integrated multi-story buildings have restricted access, CCTV systems, intercom facilities, multiple lifts, and controlled entry/exit points. Compared to independent plots or houses, they enhance security for residents, visitors, and retail consumers. For overseas investors and buyers, security is a major criterion influencing property purchase decisions in Pakistan.

Family Lifestyle

Mixed-use buildings and high-end malls offer a secure, convenient setting for families to live, play, shop, and connect within one self-sufficient ecosystem. Easy accessibility to groceries, food courts, retail, entertainment, sports facilities, and other amenities within the same compound allows for a wholesome, engaging lifestyle. It appeals greatly to both resident families and visiting shoppers.

Increased Liquidity

Grade A malls and mixed-use high rises by reputed builders see good investor demand, enhancing potential resale and exit value. Additionally, the ability to lease out spaces ensures decent rental yields in between. It makes them more liquid than traditional assets like plots or independent houses. Considering the increased transparency and maturity of Pakistan’s realty market, exiting a high-quality rise investment is easier nowadays.

Professional Management

Unlike standalone buildings, most premium high-rise projects offer professional property management services for maintenance, facilities, security, tenancy agreements, and lease management. It allows investors to enjoy good rental returns and capital growth without tackling operational responsibilities and hassles. Thus, investing in a properly managed high-rise project remains a passive investment for the most part.

Lower Risks

Structured high-rises lend investors better efficiency, ownership rights, and transparency than independent buildings. Strict development laws, higher compliance on approvals, quality construction standards, compliance on title transfer, and dedicated project management teams during and post-construction also mitigate common property risks in Pakistan related to land ownership conflicts, quality issues, and ownership transfer.

Investing with an established developer on a premium high-rise project minimizes risks around standalone buildings. However, thorough due diligence regarding the developer’s track record and financial strength must be conducted before finalizing an investment.

Conclusion

With attractive returns potential, portfolio diversification benefits, and lifestyle upsides, the premium high-rise real estate segment offers a lucrative proposition for investors in Pakistan’s property hotspots. Pick the right project by an established developer in a prime location and reap steady cash flows and wealth creation upside over the long run.