1-Kanal commercial building currently listed for sale in Lake City, Lahore.
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Property Snapshot: Lake City 1 Kanal Commercial Building
Price: PKR 38 Crore (negotiable)
Rental Income: Reported around PKR 28 Lacs per year (approx.)
Key Features:
Location: Lake City, Raiwind Road high-visibility setting with direct Ring Road access
Structure: Ground + 6 floors, full-fledged commercial setup
Amenities: 24/7 security, CCTV, ample parking, backup power, water & electricity, well-maintained by Lake City management
Status: Fully documented, LDA-approved, and transfer-ready offering strong legal and investment reliability
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Investment Analysis: Is It a Good Deal?
Rental Yield Estimate:
At PKR 28 Lacs per month on a PKR 40 Crore asset, the rental yield is approximately 0.74% considered low for commercial real estate, especially in prime locations.
How It Stacks Up:
0.71% yields are below typical expectations in stable commercial zones, where investors often aim for 45% or more .
Why Consider Commercial Property in Lake City?
High demand due to Lake Citys growing resident base and infrastructure
Businesses including franchises, clinics, and retail seek premium commercial space in gated communities
LDA approval and Ring Road access make it a reliable and accessible locale for long-term investment
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What to Do Next
1. Compare Similar Listings:
Look for other comparable 1-kanal commercial buildings with known rental returns to benchmark yield performance.
2. Evaluate Tenant Quality & Lease Terms:
A stable, long-term tenant or brand can justify low yields through reduced vacancy and security of income.
3. Legal & Zoning Commence:
Although the building is LDA-approved, verify all documentation, zoning permissions, and any operational fees or conversion costs if applicable.
4. Consider Appreciation Over Yield:
If rental income underperforms, assess the potential for capital growth in Lake Citys expanding commercial landscape.
5. Consult Experts:
Getting advice from a commercial real estate advisor, especially in gated housing societies, can clarify risks and returns.
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Conclusion
This property stands out for its prime location, strong legal foundation, and long-term growth potential. However, the rental yield is modest compared to what some investors expect.
If your goal is wealth preservation with future appreciation, it could be a strategic choice. For more immediate returns, you may want to explore other options or negotiation strategies.
Would you like help finding comparable properties or assessing detailed return scenarios?