THERE are a lot of things we can learn about real estate. For example, it is easy to confuse the term with the property even though there is a major difference. While the property may include both movable and immovable assets, real estate only refers to immovable property.

Personal assets can be tangible, such as cars, clothes or other objects, or they can be intangible, such as stocks, government bonds or other investments. In contrast, real estate is inseparably linked to the ground, both physically and legally, including all the rights of ownership, the right to possess, sell, lease and enjoy the land. Real estate can be residential, commercial and industrial.

According to some estimates, the net worth of Pakistan’s real estate sector can be anywhere between $300 billion and $400bn. As the government has now lifted restrictions on the sector, foreign investors have also started pouring millions into the industry. From a broader perspective, Pakistan is a strategically and geographically important hub for the future economy. As a result, we see different industries converge in Pakistan, including the real estate and construction sectors, transportation and logistics, energy and power-generation, and agriculture.

Talking about foreign investment, China is estimated to have invested more than $87bn in Pakistan, a figure that is expected to rise rapidly in the coming years if things do not go haywire.

Pakistan’s real estate sector, in particular, is receiving inflows from many large firms around the world, including a recent multibillion-dollar investment agreement from a Saudi company.

It all points to one thing: it is the perfect time to invest in Pakistan, with the real estate sector being one of the best options. In addition to continuous growth and stability, investing in the sector may become one’s great source of passive income with one of the highest rates of return in the world.

Whether you are planning for retirement, saving for a college fund, or earning residual income, investing in real estate can come to your rescue if you play your cards right. However, as with any other investment options under the sun, it is important to know where to invest. Any rapidly growing sector tends to have many unscrupulous elements trying to defraud potential investors, who offer unbelievable deals and rates of return — that seem perfectly believable on a fateful day — to rob gullible people of their hard-earned money.

Therefore, before going forward with your investment decision, it is imperative that you know the company’s profile, its completed projects, financial status, the progress of current projects and growth potential.

Once you have made up your mind, it is usually better to invest with a smaller amount of money instead of diving right in and making a mega-investment.

Instead of investing on the bsis of some whim, it is your best bet to do your homework and go for only the trusted names in the sector. Only then you can see some real return on your investment.

Adnan Ali Mughal
Islamabad

Published in Dawn, December 22nd, 2021