Are you someone who wants to diversify his/her investment portfolio?
Are you having problems in understanding and choosing an appropriate real estate project?
If you have the mentioned issues, then we suggest you invest in a shopping mall today.
Or, if you are planning to focus your big chunk of hard-earned money in some other category than a residential property, you ought to consider the commercial real estate. Narrowing down your pick-up-option, we recommend you to scroll some shopping mall investment options in the metropolitan cities of Pakistan.
While you make your decision to invest in a shopping mall, Lets dive into the benefits that this wise move fetches along. It is a much safer investment option that has minimal risks attached to it; and it provides a steady source of income. Read till the last word to unveil the perks of choosing a shopping mall for investing.
An overview of benefits:
- A very simple and profitable form of investment
- Leasing out is easy
- Minimum risk involved
- Evolution with population’s lifestyle trends
- Maintained property
- Diversity and expansion in investment portfolio
- Amenities shared
- Professional terms
A very simple and profitable form of investment
By simple form, it means that you should select options that are secure and offer substantial returns. Shopping malls provide good returns as long as you are diligent.
As a beginner in the real estate investment, it is recommended to keep things simple at the start. Investing in a shopping mall is a hassle-free form of investment that promises best returns. Calling it simple means that the formulas of such a form of investment are easy to understand, implement, and monitor as compared to other investment categories.
Leasing out is easy
Interestingly, it is considerably easy to lease out commercial properties such as shopping malls and retail outlets. The government usually is also very flexible in giving lease to the investors because it generates commercial activity and overall revenue generation in the economy.
Minimum risk involved
Every investment has a certain level of risk associated with it. Risk cannot be wiped out completely. However, with a suitable strategy and well-informed decisions, the risk associated with investing in real estate can be mitigated.
When it comes to a shopping mall, the risk is low because it is shared among many persons. When you buy a house, you are alone responsible for the risks attributed to it. This is not the case with shopping malls because it is a shared space. This is the primary reason which makes it a safe and secure investment option in Pakistan.
Evolution with population’s lifestyle trends
The products that are seen in a shop are directly a reflection of an area’s lifestyle trends. A commercial shopping mall tends to include outlets belonging to diverse niches. As the trend of the one-stop marketplace is on its peak, people are more fascinated by shops and spots that provide a diverse portfolio of sellable products. Thus, the ever growing trends of such commercial plazas are increasing its importance in the eyes of real estate investors, builders, developers, and investment magnates. The rising demands are motivating builders and developers to build more such shopping malls and plazas to cater to the shopping and investment demand of the population.
In the residential sector, tenants usually damage the property. Things go through some wear and tear around the house and they make no efforts to keep the place maintained. The reason is that there is no ownership of property and tenants have it only for their own personal use with not much focus on how it looks to outsiders.
Conversely, commercial properties such as shopping malls are well taken care of and maintained at all times. A huge chunk of sales is directly proportional to the outlook of shops, so the tenants leave no stone unturned to keep the place neat and tidy.
Diversity and expansion in investment portfolio
Shopping malls are an excellent option if you want the expansion of your portfolio. In the present fast-paced world, diversification is crucial. Shopping malls are known to provide safe and consistent results over a span of time.
They provide good passive income opportunities and ensure that your investment portfolio remains on track. If you are looking to move to a new niche, shopping malls are the perfect option for you.
Also, apart from the diversification in property, you will get diversification in tenants as well. Your tenants may be inclusive of following sectors; food, banking, health and beauty services, automotive, and technology, and more. In short, it is quite easy to attract a stream of potential tenants.
When you invest in residential properties, you have to pay for every single stuff because you are the only owner of the place and it is your responsibility to manage all the amenities for the tenants.
One of the biggest advantages of investing in a shopping mall is that you do not have to pay for all the amenities. The mall owners normally set up power systems, decor, security, and other such amenities.
If you are a real estate investor who prefers good professional relationships, then shopping mall investment might be the perfect opportunity for you to get connected with like-minded people.
Owners of commercial properties are normally MNC’s and business owners. Unlike residential property owners, the owners of commercial properties firmly believe in Business-to-business relationships which are built on professionalism and courtesy.
So, these were some of the major advantages of investing in shopping malls. Purchasing shops in commercial malls is one of the best ways to secure your hard-earned money. Shopping center investments come with various benefits. Apart from having a tangible asset, you also enjoy monthly rentals and high ROI. What else do you require in a good investment?. And We would like to mention one such project in Pakistan with all mentioned benefits, The Ice Mall which is located right in the heart of Pakistan’s Capital, Islamabad. To know more about this project, please check the following article: