When it comes to investing in land with a view to turning it into a business, the advantages offered by urbanized land, such as Overseas Prime II , over other types of lots are key to achieving business growth goals and obtaining the expected Return on Investment (ROI).
In recent years, investment in commercial real estate has multiplied, generating higher income due to the growth of cities and the demand for services, two aspects that open new areas of opportunity for business.
However, to increase the chances of having a profitable business, it is not enough to look at the development of the place and the market of opportunities; It is also essential to know what type of land to choose to make a profitable investment and avoid any type of risk.
Sky Marketing presents this article in which we will talk about urbanized land and the advantages they have over rustic and undeveloped land.
What Type of Land to Invest in?
Nowadays, thanks to the yields generated by the land, it is common to find a great diversity of land offered in the real estate market, and choosing the most convenient one depends on the objectives and expectations of each investor.
Investing is a decision that requires analysis and research to avoid risks and capital losses. There are many types of investments that you can make depending on your age, but real estate investment coincides at all stages of life.
The type of land you buy will depend on the business idea you have or —in any case— if it will be used for housing. In both cases, it is always advisable to invest in urbanized land that allows you to save money.
Now, being clear that the land must be urbanized, it only remains to verify when you make the purchase that it has the type of land use that you require, be it commercial, residential or industrial.
What is Urbanized Land?
To better understand the above, we will define what urbanized land is.
Within the real estate offer, it is common to find two types of land: urbanized and those that, due to their growth projection, are options for long-term investment but that do not have services or any type of urbanization that facilitates commercial development.
Despite the fact that the latter has the advantage of being more accessible in price, they are not recommended land for establishing businesses because they are located in areas far from urban centers and have little or no infrastructure and development.
In addition to this, sometimes, it is ejido land that cannot even be sold since it does not belong to an individual but to the state. Therefore, carrying out a sale of this type would represent a risk for the investment.
On the contrary, urbanized land is private property and intended for short-term construction, so it has various characteristics, for example, good location, basic services such as electricity, drinking water, drainage, and documentation that supports its legality for providing legal certainty to the investor.
Uses and Characteristics of Urbanized Lots
In general, urbanized land is planned for residential purposes. However, there are real estate companies —such as Sky Marketing— that manage urbanized lots for commercial purposes.
Whether to build a house or commercial premises, it is required to have basic services on the ground; Among the main ones are:
- Electric power
- Drinking water
- Sewer system
- Street lighting
- Sidewalks and ridges
Another important feature is that they are located near the urban sprawl, which will make the land increase in value and you will obtain a profit in the medium term.
In addition to a privileged location, you avoid additional expenses and the time it would take you to do the paperwork and the necessary improvements to develop on your own.
How to Choose a Plot of Urbanized Land?
The first thing is to have a clear idea of what use you will give the land before making the investment.
Many people know the advantages of investing in land as a form of retirement savings since they are operations with a medium risk factor and that guarantee medium-term profitability.
However, although buying an investment lot is the best option for retirement, you must establish a business plan. For it to be a successful investment, you must determine for what purpose you want to acquire the land.
Briefly, these are the steps you must follow to buy developed land:
- Determine the use that the land will have, either to build a home or build a business premises
- Contact a real estate company —such as Sky Marketing— to receive advice. Remember to check the reputation of the company and that its lots are delivered urbanized.
- Find the ideal location for your project. If you want to start a business and build commercial premises, make sure it is in an area with a high influx of people
- Make a budget and consider the initial investment, as well as the expenses of the procedure and maintenance
Currently, it can be easy to invest in real estate. You can even buy land online; however, before deciding on a real estate agent, you should investigate and compare before proceeding.
This is due to the fact that among the wide range of investment lots on the market, not all of those offered have urbanization.
Most of the cheapest investment lots are located away from residential areas, usually on the outskirts of the city in police stations or municipalities. The problem they present is that they do not yet have services and it is not known exactly when the city council will carry out the urbanization work.
For this reason, you should opt for companies whose land already has market studies that guarantee the profitability of the property and guarantee the increase in capital gains in the medium or long term.
Advantages of Investing in Urbanized Lots
Investing in urbanized land offers the freedom to build and, at the same time, belong to an area that will provide endless benefits, compared to what it would be to do it in a rural or ejido area, far from the latent growth of urban sprawl and with the legal risks what this implies.
Many real estate agencies use low-quality materials to carry out the construction of their projects, so it is safer to buy the land and build it yourself in order to ensure that everything is done according to your needs.
And not only that, they are usually larger tracts of land, as opposed to buying homes or prefabs on limited land.
Being located in areas of accelerated growth, urbanized land is a safe and profitable investment in the future for commercial projects. Due to their location and planning, they are the ideal opportunity for commercial developments, such as small business premises and convenience stores.
In addition, they expand the options of use and are an alternative to obtaining income from the investment even without having been built since their location and characteristics allow them to be leased to franchises or other service providers.
Another of its advantages is the added value that it will obtain year after year. As the demand for purchase rises and the city continues to expand in population and services, the cost per square meter of urbanized land will increase exponentially, reflecting in a higher return on investment.
The price is also an advantage because you can buy pre-sale urbanized investment land saving a considerable amount, as opposed to buying it at market price.
There are real estate agencies that offer financing plans to acquire in a period of 24 to 36 months without interest, which results in savings and a higher profit margin in the future.
What to Take into Account when Acquiring an Urbanized Land?
In addition to location, price and space, there are other factors that you must take into account when buying your land:
- Preferably choose a plot with a regular shape to make the most of the available space
- Visit the land to verify the accessibility and the state of the surrounding areas, and corroborate the potential it has for housing or business
- If you buy from an individual, hire the services of a real estate advisor and a notary public to verify that the land is regularized and has no debts
- If you’re not going to build right away, find out what you need to do to keep the land in shape and prevent invaders from coming
- Secure your purchase by deeding the land before a notary public and for it to be registered in the Public Registry of Property
Invest in Urbanized Land, your Best Option
Due to its rapid growth, today, the supply of urbanized land in Pakistan has been on the rise to respond to the expansion that the cities have registered and promote commercial development in emerging areas.
Now that you know the advantages of buying urbanized land in cities in Pakistan, all that remains is to find the ideal real estate company.
At Sky Marketing, we have projects of urbanized lots for commercial use developed in areas of Pakistan, which increase the chances of obtaining high returns thanks to their strategic location and delivery characteristics that facilitate short-term construction.
If you want to know more about these projects and the characteristics of our commercial land, contact us so that a specialized advisor can help you answer any questions you may have about expanding your business in a place where you can maximize your return on investment.
Author: M. Rubayet