Real Estate

Types of Real Estate in Pakistan and Options Best for Investment

Which investment can get you the desired results, to make this decision, it is necessary to be aware of different real estate options.

Pro investors are usually equipped with this knowledge, but this information can be helpful for new investors. Knowing about different properties and what output investment in those properties bear can help you to make knowledgeable investment decisions but also allows you to stay updated with market trends.

Here are the types of real estate in Pakistan. Stay tuned to the end and know that among all the options, which option is the best investment.

1.    Plots

Plots are one of Pakistan’s most popular real estate types, especially since the era of the property boom started.

Plots are pieces of land in different sizes that are used for various purposes, including the construction of residential and commercial projects. The price of plots vary depending upon the city, location of the plot within the city, size, plot category, and some other akin factors.

2.    Residential Properties

As the name indicates, the residential properties are used for residence purposes. These properties include houses, apartments, flats, farmhouses, etc.

In Pakistan, the most common type of residential property is single-unit homes, but recently, the popularity of apartments is also on the rise, especially in areas like Bahria Town and big cities like Rawalpindi, Islamabad, and Karachi.

It is a trend worldwide that the cities expand vertically, i.e., there is the example of Dubai and New York. But unfortunately, in Pakistan, with the population boom, cities are also growing, but instead of vertical expansion, it is horizontal expansion.

3.    Commercial Properties

Commercial properties are those properties that are directly used for business purposes. Shops, offices, and shopping plazas are common commercial properties. The land dedicated for commercial purposes and profit gaining also falls in this category. Among all the different types, the most common type of these properties in Pakistan is single-unit shops.

Commercial property cannot be utilized as a residence, and it tends to be more expensive than residential property, but it comes with more perks.

Commercial property is one of the best methods to invest in Pakistan. As housing complexes are quickly expanding across the country, the business side of Pakistan is also rapidly growing. These are the most desirable type of real estate investment, an option not so popular with Pakistani investors, but investors across the globe want commercial lands to earn a higher ROI (return on investment).

Commercial properties come with relatively higher taxes, yet they are nothing compared to the profits they generate.

4.    Agricultural Lands

Agricultural land is described as land that is either arable, planted with permanent crops, or grown with permanent pastures. Land under temporary crops such as grains, temporary meadows for mowing or pasture, land under market or kitchen gardening, and briefly fallow are all examples of arable land.

As an agrarian country, agriculture is regarded as the backbone of Pakistan’s economy. Our country heavily relies on its key crops, making agricultural properties a significant type of real estate.

The primary natural resources of Pakistan are arable land and water. Agriculture contributes around 18.9% of Pakistan’s GDP and employs approximately 42.3% of the labor force. Punjab is the most agricultural province having most agricultural lands, with wheat and cotton being the most cultivated crops. Mango plantations are primarily found in Sindh and Punjab regions, making Pakistan the world’s fourth largest mango grower.

5.    Industrial Lands

Land used for production, processing, or raw material storage is called industrial land.

These lands are used for manufacturing activities that employ equipment and mechanical power to manufacture products or services, including electrical power, or for a service firm that offers storage facilities, product distribution, or machinery maintenance or repair.

Two categories of properties are available in Pakistan for establishing an industrial unit/factory. First are industrial zones that the government transfers on leasehold rights or other particular circumstances that differ from one industrial zone to the next. In such industrial zones, land sizes typically range from 4 to 16 kanals. The transfer letter or lease deed issued by the concerned industrial zone serves as the title to such properties. Such a title can be validated at the concerned zone’s office and may include the records of the related registrar of guarantees.


Second, freehold land can be used unconditionally and acquired/purchased with no geographical restrictions. But these lands are subject to a complicated title verification procedure.

6.    Government Properties

State land, sometimes known as crown land, i.e., Sarkari Zameen, is land controlled by the federal, provincial, or local government.

This category includes roads, parks, government hospitals, government offices, etc. there are also circumstances when the state property is provided to residents through government schemes such as horse studs, cattle breeders, etc.

There are also cases when land is controlled by the government yet owned by the population.

7.    Residential-commercial Complex

A mixed-use development is a form of real estate commonly found in the urban centers of big, bustling, or affluent metropolitan regions. A well-designed mixed-use building in Pakistan offers a combination of residential and business apartments under one roof.

This real estate trend has evolved in recent years in response to increased demand for land, notably in the world’s most densely populated cities. This approach has lately evolved in Pakistan, in line with the most contemporary international construction techniques.


Final Words


What type of real estate is the best option for you depends upon your investment needs, but considering the future market predictions, the high-rise is the future. Whether you are looking for commercial or residential investment options, no option surpasses the perks offered by mixed-use/residential-commercial complexes.

Commercial or Residential Property – Which investment is better?

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