How to Start a Real Estate Business in Pakistan?

real estate is among most biggest industries in Pakistan. It is about building or infrastructure, residential, retail, and other kinds of work.

How to Break Into the Field

In order to get into this field you are going to need the right kind of team in order to help you take things to the next level. You will need designers, architects and many more professionals. Morph is the proud architecture and design partner of leading real estate businesses such as Nouba Realty in Dubai. 

Because you are entering a super competitive market then you need to keep in mind several things. 

Define your business goals

Real estate is a huge field and no one company can cater to all segments of the market. You need to decide a niche to specialize in when it comes to your real estate company. Are you going to venture into small house building, commercial or larger projects. 

This is based largely on the amount of capital that you can invest in your business. In case you are a small business that cannot have everyone in house then you can partner with a company like Morph to deliver the designs that you need to meet customer expectations. 

In fact a lot of companies struggle with this. They understand the engineering side of things but not the design side of the equation.  You need to jump in deep and handle these things. 

Market analysis for Your real estate Business in Pakistan 

Do not jump into business without first having a thorough understanding of the market situation.  

Register and Legalise

Before starting your real estate business in Pakistan, you have to know how to register your business with the right authorities. This includes registering your business name, getting a national tax number (NTN). You might want to register with the Registrar of Firms. The other place where registering is done is with the Securities and Exchange Commission of Pakistan (SECP), and getting the right permits and licenses.

Hire a Team for the real estate Company in Pakistan 

Your business is only as good as your team. You are the group of professionals you have around you. The designer, real estate manager and others all need to be people that can count on and rely for the long run  

Establish a Supply Chain

You need to come up with a team of partner companies and agencies that provide you the best possible materials for instance or other service. Here you need a diverse set of companies on your team. The reason is that client demands are so variable that one company can never be great for all needs. 

Services and pricing

Look to offer value added services that you can charge a premium for the services you are offering. When we are thinking about how to start a real estate business in Pakistan, it is super important that we know the value we offer. 

Marketing and sales for your real estate Business in Pakistan 

Once you have a project or two under your belt then you need to get the word out that you are a talented business that knows what they are doing. When companies partner with professional architecture and design firms they find perfect balance between things like space utilization and beauty for instance.  

Operations and management

You need to streamline your operations in such a way that everyone knows their job perfectly well. This is essential in order to make sure that people own up to their own part of the job. 

Risk management for your real estate Business in Pakistan

In the Pakistani real estate market being in real estate is often disrupted due to hikes in material costs. The other big issue for a lot of contractors is to get their bills cleared. This is a huge challenge. You have to incorporate your client’s reputation and incorporate a premium in case the client is deemed as unreliable when it comes to paying their bills. 

Project Size

The size of the project is one of the significant factors determining the profit margin in the house real estate business in Pakistan. 

The bigger the project the more the margin is going to be. The reason is that the unit cost shrinks as economies of scale allows people and businesses to increase their bottom line and make a lot more money as compared to smaller vendors. 

Complexity of Project

The complex kinds of projects have higher profit margins as you are able to command a higher rate for your work. Also, if you are highly skilled in this then the real estate business in Pakistan is going to be a great option for you. 

 Location

In the big cities of Pakistan like Islamabad, Lahore and Karachi the margins are higher as compared to rural areas and smaller towns. The reason for this is that customers in these regions call for top quality work.  

Overhead Costs

A lot of the companies that are trying to work in this field do not take overhead costs into account. The upkeep of an office, a permanent team and other expenses that are not fully accounted for.  The real estate business in Pakistan often has too high overhead costs. 

Labour and Material Costs

Material and labor costs are the most significant outlays in the house real estate business in Pakistan. These rates are higher the further away you are from the main cities of the country. 

These costs are much higher when it comes to more remote areas.  

Explore: Top 10 Architects in Pakistan

Why Should You Opt for Real Estate Business? 

The benefits of going into the real estate business are many and multifaceted. Let us look at some of the major factors as to why the real estate business in Pakistan in the best possible way. 

Profitability

The real estate industry is highly profitable, with some having profit margins ranging from 10% to 20%. With the right planning and execution, a real estate company in Pakistan is the way to go. 

Financial Stability 

Real estate is a relatively stable field. The players in this do not go under regularly. So if you want to make a business that goes a long way then the real estate business in Pakistan is a good choice that you want to go for.