What is Residential Real Estate?

Residential real estate refers to built-up properties specifically designed for living and habitation. In addition, the plots that are developed to accommodate future housing projects can also be considered residential properties. The residential sector is considered the most important in the real estate industry of Pakistan. Due to fast-paced urbanization, the need for residential properties is growing.

Types of Residential Real Estate

Residential real estate includes every property intended for living, i.e., houses, apartments, and condos. There are sub-types of these primary residential properties. These include:

Single-Family House

An individually built house intended for a single family is the most popular category of the residential sector of Pakistan. Most housing projects offer house units to the investors since they have the highest demand.

Vacation Home

Vacation Home is also known as a secondary house, or some call it summer home since it is often built in colder climates. It is not a common residential real estate type in Pakistan. However, there is a growing trend. Oasis Farms Islamabad is currently offering investors an opportunity to build a secondary or even primary house in the scenic landscape of Margalla Hills.

Apartment

An apartment, a flat in Pakistan, is a single unit for a family or individual in a residential building. Apartments are usually owned by a real estate company or corporation. Therefore, most people rent out apartments instead of owning one. However, Spring Apartments Lahore offers apartments for sale currently. This apartment complex is unique and quite luxurious.

Condominium

A condominium, or a condo, is often misunderstood as an apartment in residential real estate. However, these two are quite distinct. A condo is an individually owned unit in the residential building instead of owned by a single entity.

The maintenance & taxes are the responsibility of the owner of the condo, not the owner of the building. In an apartment complex, the owner of the building takes care of maintenance and everything else.

Residential Real Estate vs Commercial

The Real Estate industry mainly consists of two major sectors: residential & commercial. Most development projects in real estate are either related to businesses or houses. Hence, these two sectors are the main targets of every real estate developer.

However, the developers and investors in Pakistan focus mainly on residential real estate vs commercial. Why? It’s because there is a massive need for residential properties in Pakistan.

If you are new to this industry, you should explore residential properties for investment instead of commercial. Investment in the commercial sector is not suitable for newbies.

What are the 4 types of Real Estate?

There are 4 main types of real estate in Pakistan: Residential, Commercial, Industrial, and land. Each type is a distinct sector in itself. For instance, industrial real estate is completely different from commercial even when they look almost identical.

The details about these 4 types are as follows:

Residential

The residential sector consists of properties related to housing and living, as defined earlier. Residential real estate is rising in Pakistan since most development companies are constructing state-of-the-art smart cities.

Capital Smart City is a major project aiming to provide luxurious and smart housing to Pakistanis. It is a major project in Islamabad that is quite popular among investors.

Commercial

The commercial sector comprises shops, office buildings, high-rise business buildings, shopping centers, malls, hotels, retail stores and restaurants. The commercial sector is the most important in real estate or as important as the residential real estate sector. It creates economic activity in the industry, fueling the country’s economy.

Industrial

The industrial sector consists of properties such as factories. The properties built solely for manufacturing, assembly, or storage can come under the category of industrial sector. An industrial area is often outside of the city.

Land

The most simple category of real estate is vacant land. However, land can serve multiple purposes. You can develop commercial, residential, or industrial properties on land. Therefore, land is Pakistan’s most diverse investment option in real estate.

Residential Real Estate Investing

Investing real estate in residential properties can be tricky for newbies. The main problem is that you are always presented with many options. Firstly, a wide variety of options seem like a blessing, but they can confuse someone who is not an expert in the industry.

Therefore, you should always consult a professional before deciding on investment in residential property. Contact Makaan Solutions to get information regarding new projects worth the investment. New City Paradise is a new project that offers modern living standards for prospective residents. It is located on the main GT Road near Burhan Interchange. Furthermore, it is also accessible from the M1 Motorway. Hence, the location of this housing society is quite premium, which is important for the ROI.

Residential Real Estate Development

Every real estate development company in Pakistan is adamant about providing the best housing projects. Thus, we see major housing societies being developed in major cities of Pakistan, i.e., Karachi, Islamabad, & Lahore.

Real estate development companies, including DHA, Bahria Town, 101 Group, and Vision Group, are the main reasons this sector is flourishing. However, Islamabad, Lahore & Karachi already have massive residential real estate development projects. Other cities lack such projects. Therefore, Bahria Town Peshawar is a new project by Bahria Town. It is a positive sign that other cities in the country are also getting the attention they deserve. You can also expect to see more high-level residential projects in other cities.

Conclusion

Residential real estate presents a lot of investment options for all income-level investors. It doesn’t matter whether you are new to the real estate industry or you are a veteran. The real estate residential sector is always growing, and new projects keep popping up, providing equal opportunity for everyone.

New residential projects in Pakistan are being developed per international standards since the infrastructure of already-built developments is not world-class. Hence, it is an ideal time to put your energy & money into new valuable projects. Time is crucial, so invest timely, wisely & decisively.