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Some Key Factors That Influence Property Value

The real estate sector is widely accepted and appreciated as one of the most profitable investment avenues in Pakistan. It is mostly because of the constantly increasing property prices in the country, allowing both mid-term and long-term investors to enjoy high capital gains.

Considering the lucrative nature of the real estate market in Pakistan, every other person wants to invest in it. However, it may not be as easy as it sounds. There are many reasons that can cause property prices to fluctuate. This makes it important for you to be thoroughly aware of all the factors that trigger such changes before going ahead with your investment decision. 

So, to help you out in this regard, we have compiled this real estate investment guide. In this post, we are going to shed light on some of the most important factors affecting property value in Pakistan. 

LISTING DOWN THE KEY FACTORS AFFECTING PROPERTY VALUE

Now, we’ll list down and discuss each of the important factors that influence the real estate market in Pakistan one by one.

  • Location
  • Property Condition
  • Curb Appeal
  • Availability of Facilities
  • Security
  • Real Estate Supply and Demand

LOCATION

A house in DHA Defence, Lahore
Properties in posh localities like DHA Lahore are usually a bit more expensive than in other areas

Of course, location secures the first spot on the checklist of factors affecting property value. Real estate in city centres is, understandably, more expensive than in suburbs. It is mostly because of the easy accessibility of major facilities and landmarks that are available in abundance in the city centre, which ultimately reduces commuting time and distance. Proximity to parks, schools, shopping places, and easy access to the city centre; all these factors greatly add to the value of a particular property unit. 

While searching for residential properties for sale in Karachi, make sure to consider areas like Clifton, DHA, and PECHS. Similarly, if you are looking to buy a property in Lahore, you should check out localities like Johar Town, DHA, Cantt, and Model Town. Their prime and well-connected location make them ideal for real estate investment. 

Owing to all these factors, properties in such localities are usually a bit more expensive than in other areas. So, whether you are looking for an investment property or a new home for your family, don’t forget to carefully consider its location before investing.

CONDITION

An outside view of a well maintained property
A well maintained property is greatly value in the real estate of Pakistan

After location, the next important thing to consider is the condition of a property. It may not be a big challenge for you if you are buying a newly built house. On the other hand, if you are investing in an old residential unit, you would surely go for a well-maintained house instead of investing in a property in poor condition. 

You don’t want to end up buying a house that needs a lot of repair and maintenance, especially if you are paying a good amount of money for it. This makes it very crucial for you to closely inspect both the interior and exterior of the house you are buying. Starting from the paint on the walls, all the way to fixtures and furnishings (in case you are buying a furnished home), check each and every corner of the property before closing the deal. 

If you come across anything damaged or broken, you can always negotiate the price with the seller. You may probably save a good amount of money if you close the deal at a negotiated price. The money you save here can be used to fix wear and tear in your new home to improve its condition.

CURB APPEAL

flowers hanging outside the window of a house
Curb appeal effectively adds to the value of a particular property

Uplifting the curb appeal of your home is another great way to enhance its overall condition. This is why it is also counted among the most important factors affecting property value. To add some extra appeal to your property, you can always work on enhancing its overall appearance. A few simple changes and modifications can make your property look more attractive.  

For example, if you have enough space, you can always work on the aspect of gardening on your property. A decorated driveway or veranda can effectively make a house more visually appealing. Make no mistake, curb appeal matters a lot when it comes to valuation. If your house looks beautiful, you have more room to increase your asking price while selling. It is also one of the best home staging tips to impress potential buyers.

FACILITIES

facilities at Zameen Opal Lahore
Top-notch facilities of Zameen Opal are the unique selling point of this ultramodern apartment complex, increasing its property value

Another thing that you should importantly look out for while searching for a property to invest in is the availability of facilities. In fact, facilities are now treated as the unique selling points (USPs) of almost every other modern-day apartment complex and gated community in the country.

Conveniences like standby generators, 24/7 water supply, high-speed elevators, ample parking space, in-house community clubs, and fitness centres have become a standard for any ultramodern residential arrangement in today’s world. 

Older property projects that lack such facilities usually have lower real estate value, which may also not witness a substantial increase with time like the newer developments that are master-planned communities, well-equipped with modern facilities. 

The availability of major commuting facilities is also an important factor to consider while investing in a property project. Proximity to public transport service has a very positive impact on the real estate value of a particular vicinity.

SECURITY

CCTV Cameras installed at a neighbourhood street
CCTV Cameras are usually installed in residential neighbourhoods for improved security

Would you ever buy a house in a notoriously unsafe area with a fluctuating property market? Of course, not. Everyone desires to live in a secure home. As far as the factor of security is concerned, it greatly depends on the location of a particular property.  

The emergence of gated residential communities is a new trend in major cities of Pakistan. These places offer gated and guarded environments and, consequently, have a higher value in the real estate of Pakistan. Moreover, state-of-the-art alarm and security systems these days provide relief to both buyers and sellers because, again, the safer a property, the higher its real estate value.

UPTICK IN DEMAND FOR A PARTICULAR TYPE OF PROPERTY

A graph of property market performance
Changes in real estate supply and demand greatly impacts a property value

Keeping in view the scarcity of available space in urban centres and the constantly increasing demand for housing, the concept of high-rise and mixed-use developments that ensure sustainable urban living has become quite popular. 

The country is currently going through a major real estate investment shift from plots to high-rises and other types of ready-made housing units. The changing preferences of property buyers in Pakistan have significantly increased the real estate value of apartments in major cities like Lahore. 

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