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Where to invest? Majority prefer investment in real estate, but laws absent
Posted by :Team Aman newsPosted date : February 15, 2015In BUSINESSComments Off on Where to invest? Majority prefer investment in real estate, but laws absent
Zameen.com survey reveals 78% of Pakistanis go for property investment. CREATIVE COMMONS
LAHORE: Pakistan’s real estate sector is definitely lucrative, attracting both investors and genuine buyers alike. Yet, a noticeable majority of Pakistanis are overly anxious when dealing with investment in this particular sector.
Reasons for this are well known. The undocumented real estate industry, which witnesses many frauds from developers with almost no property laws protecting the investor from potential scams and the overall unpredictability, makes it a perfect blend to scare financiers away.
However, according to a survey conducted by Zameen.com – Pakistan’s largest property portal – 78% of the Pakistanis opt for real estate when it comes to securing their investments in the country. It also stated that 10% of the population prefer gold as an investment opportunity as well.
The survey stated only 4% preferred stocks as investment; this small percentage was due to high market risk and adverse opinions on the stock market.
Meanwhile, another 4% believe in savings certificates and other investment options available in the country.
The survey covered average Pakistanis from the top and middle slots of professionals and self-employed people who have savings and are planning to invest for future protection.
Market experts said that this large percentage of people who choose real estate as their investment avenue is due to the increasing options in this sector. Despite the weaknesses, real estate is still the easiest way to make money with limited knowledge, they said.
“It’s like hard cash, with high hopes of returns keeping market sentiments in mind,” said Shaukat Khan, a real estate investor. “The land will never lose its value though it might record some stagnation but ultimately it reaps the rewards and in some cases, the best returns on your investments.”
With the high influx of population into metropolitan cities in the past decade, the real estate sector has gone through a vital transformation. Nearly every mega scheme announced by the developers has modern lifestyle facilities.
The mushroom growth of new and existing housing societies across major cities of Pakistan has created avenues of investments. Some investors continue shuffling their investments via land transactions and some in the shape of plots or a complete unit, which they give on rent to others and create monthly income.
The survey further reveals that 26% of investors opt for residential plots, whereas 20% go for houses to secure their investments. Some 7% want to invest in flats or apartments, 5% want to put their money in plot-files and forms.
Another 4% want to invest in commercial plots and the remaining 38% go for other available avenues of real estate investments.
To protect them from any scam, a large number of investors always pick housing societies that have their internal land transfer procedures, making them financially secure.
Yet 52% of the people do not agree that there are adequate laws and regulations in the country to protect the buyers.
Published in The Express Tribune, February 15th, 2015.
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