I remember the time back in Jan 2012 (not very long ago), one of my relatives in US was interested to buy a commercial plot of 8 marlas in Phase 6 of DHA Lahore. Price at that time was around Rs.3.3 crores. The deal was almost negotiated but later due to some other priorities, my relative could not buy. In the mid of 2013 the price of the same piece of and had appreciated to Rs.5 + crores. The opportunity loss was almost Rs. 1.5 crores, equivalent of 1.2 million of income per month. Well, this is the financial side of the story and especially during the time, when the market suddenly went to its boom and got inflated pretty quickly as well as unexpectedly.
Having provided this one-off example illustrates that the investment in commercial properties provides much more potential for high earnings in many ways. Irrespective of the fact that whether it is boom time or gloom time, the commercial properties can provide the bread and butter lifelong.
The only deterring factor is that due to the high commercial prices the ordinary buyers do not have the capacity to invest. It is largely reserved for the deep pocket investors.
Commercial properties in DHA as a rough rule of thumb can reach upto the ceiling of one crore rupees for one marla. So 4 marla commercial plot can have Rs.4 crores price tag in the prime location.
Investing at the right time is the key in any real estate market. Of course DHA shares the same dynamics as in any other real estate market. When you invest in commercial properties, normally there are two choices:
Keep and hold the commercial plot, and wait for few years to appreciate the price and then sell it off at heavy premium.
Secondly, you can build a grey structure which usually costs far less than building a house. The grey structure may usually cost at around Rs: 1200 per sq ft. If you have 4 marla commercial plot, it will be 900 sq ft (225x 4). If there are going to be 3 levels. So as an estimate you can figure out 2700 sq ft of covered area (900x3). But on average you can consider 2400 sq ft to build upon. And it may cost you around Rs: 2,880,000/- less than 30 lakhs. You can put this built structure on lease or rent to some retailers or commercial companies. Usually the commercial rental rates range from Rs: 60 to 150. If your average monthly rent is at Rs: 100 can be come at around Rs: 240,000/- per month for 4 marla plaza. And this income will be for almost a lifetime of course every year it will increase too.
This way you can build your lifetime income planning by investing in commercial properties and gradually you can multiply it many times by buying more commercial properties.
People who do have adequate money to put in the bank, investment in commercial properties may make all the wiser sense to build up income as well as wealth for future of yourself as well as for your next generations.
By: Z. Ahmad