Why Investing in Pakistani Hotel Apartments is a Better Choice Than investing in Dubai

When considering real estate investments, Dubai has often been the focal point for global investors due to its glamorous lifestyle and towering skyscrapers. However, for Pakistani investors seeking a more lucrative and cost-effective alternative, investing in hotel apartments in Pakistan offers compelling advantages. This article provides a detailed comparison between the real estate markets in Dubai and Pakistan, demonstrating why the latter is an attractive choice for high returns and better value.

Comparative Analysis: Dubai vs. Pakistani Hotel Apartments

To effectively compare the investment potential between Dubai and Pakistan, let’s examine key factors such as rental yields, property prices, and potential returns.

Pakistani Hotel Apartments: Key Metrics

Price for 1-Bedroom Hotel Apartment: Approximately 600,000 AED (equivalent to 27,00,000 PKR)

Number of Apartments: 4 (for the same investment of 600,000 AED)

Guaranteed Rental Income: 12% to 15% annually

Annual Rental Income per Apartment:

For each one-bedroom hotel apartment:

  • At 12% yield: 27,00,000 PKR * 12% = 3,24,000 PKR
  • At 15% yield: 27,00,000 PKR * 15% = 4,05,000 PKR

So, the annual rental income per apartment ranges from 3,24,000 PKR to 4,05,000 PKR.

Dubai Real Estate: Key Metrics

  • Average Rental Yield: 5% to 9%
  • Price for Studio Apartment: Approximately 600,000 AED

Annual Rental Income:

For an average studio apartment costing 600,000 AED:

  1. At 5% yield: 600,000 AED * 5% = 30,000 AED
  2. At 9% yield: 600,000 AED * 9% = 54,000 AED

So, the annual rental income ranges from 30,000 AED to 54,000 AED.

For Details1 1

Financial Comparison: Dubai vs. Pakistan

1. Rental Yield Comparison

In Dubai

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In Pakistan


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2. Value for Money Comparison

In Dubai, 600,000 AED generally buys a single studio apartment. In contrast, this amount in Pakistan can secure four one-bedroom hotel apartments. Here’s a breakdown of potential returns:

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Syed Moosa Kirmani2

Graphical Representation

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The Investment Edge in Pakistan

1. Higher Rental Yields

Pakistani hotel apartments offer rental yields between 12% and 15%, a considerable improvement over Dubai’s 5% to 9%. This means investors in Pakistan receive a higher return on their investment annually.

2. Greater Value for Money

Investing 600,000 AED in Dubai typically secures a single studio apartment, whereas the same investment amount can purchase four one-bedroom hotel apartments in Pakistan. This diversification across multiple properties mitigates risk and enhances income potential.

3. Increased Rental Income

The combined annual rental income from four hotel apartments in Pakistan significantly surpasses the income from a single studio apartment in Dubai. With potential earnings ranging from 12,96,000 to 16,20,000 PKR compared to 30,000 to 54,000 AED in Dubai, Pakistani investments offer a substantial financial advantage.

Conclusion

For Pakistani investors looking for a high-return, cost-effective real estate opportunity, hotel apartments in Pakistan present a superior option compared to Dubai. The combination of higher rental yields, better property value, and increased income potential makes Pakistani hotel apartments a compelling choice.

Investors should consider leveraging this opportunity to maximize their returns while diversifying their real estate portfolio. Consulting with a local real estate expert can provide further insights and guidance tailored to your specific investment needs.

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