The retail industry is transforming. Shopping malls are an increasingly popular type of real estate investment. Shopping malls are commercial real estate and can be an excellent way for investors to diversify their portfolios. Suppose you’re looking for a low-risk, rising property investment in Pakistan. In that case, this guide will teach you the benefits of investing in Shopping Malls. Real estate investing may be your best option. Property and vice versa, even though we cannot simply pick a winner, savvy investors typically invest in commercial real estate for the high income and consistency it provides.
1. Assess the Industry
The first step is to conduct market research. First, you must understand the current state of the retail industry and how it affects shopping malls. Next, examine online shopping trends, store closures, and rental rates. This will give you a better idea of where the market is headed and whether investing in a retail mall is good.
The Dunes Mall is one of the Bin Tariq Group of Companies‘ flagship projects, causing quite a stir in the market. It has an impressive exterior, high-end finishes, an immaculately designed layout, and a great floor plan. Dunes Mall’s visual appeal is further enhanced by grand entrances, expansive views of the neighborhood, and custom-built store spaces.
2. Consider the Area
When it comes to potential investments, location is everything. You should select a mall in a densely populated area with reasonable transportation options. The mall should also be close to other retail outlets, restaurants, and entertainment venues. These factors will help draw customers to the mall even if some stores are closed.
To be sure, location is an essential factor in real estate, and it should be. A property’s location is closely related to its appeal, which leads to increased demand and an increase in value.
One of the most notable features of the Dunes Mall is its location. It is located 200 meters from Main GT Road, at Bahria Paradise Commercial, with a high footfall.
3. Financial Evaluation
Before making any decisions, you should investigate the financials of the shopping mall in which you are interested. Keep an eye on the NOI (net operating income) and cap rate (capitalization rate). These figures will give you an idea of how profitable the mall is and how risky the investment is. You can hire someone to analyze financial statements if you are uncomfortable doing so.
There is no such thing as a risk-free investment. When it comes to investing in shopping centers, however, one of the most significant advantages is reduced risk.
Because a shopping mall is a shared space with many stakeholders, the risk is more evenly distributed among many parties. This is another factor contributing to Dunes Mall being one of Pakistan’s most secure investment opportunities.
4. Consider your Aspirations
Investing in a shopping mall is a significant decision, so you must be sure of your goals before proceeding. For example, are you looking for a way to supplement your income through rental payments? Will you sell the house for a profit in the future? Or are you merely attempting to keep up with the ever-changing retail landscape? Your responses will aid in your decision-making process.
The Dunes Mall provides some of the best options, such as 4-year payment plans, rental revenue on commercial properties, and 20-30% annual growth.
The Advantages of Investing in Shopping Malls
l One of the primary benefits of investing in shopping malls is that they are frequently relatively stable investments. This is because they typically have long-term leases with tenants, providing them with a consistent revenue stream. Furthermore, shopping malls are usually located in high-traffic areas, giving them a built-in customer base.
l Another advantage of investing in shopping malls is the potential for high returns. While the stock market has averaged around 7% per year over the last few decades, some shopping malls have returned 10% or more. Of course, there is no guarantee that any particular will perform well, but investing in a shopping mall can be a great way to boost the return potential of your portfolio if you choose wisely.
l Ultimately, investing in a shopping mall can be a great way to get started in commercial real estate without purchasing an entire property. You can also diversify your portfolio and gain exposure to different asset classes.
Investing in The Dunes Mall can be an excellent way for investors looking for investment stability and income potential. Understanding the risks and rewards of investing in shopping malls will enable you to decide whether this investment is right.