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How can Real Estate Projects in Smaller Cities be Profitable?

How can Real Estate Projects in Smaller Cities be Profitable?

In Pakistan, perception prevails that real estate projects in smaller cities are either not profitable or have limited appeal. The massive development in realty sector focusing only on major cities has been the main reason of shaping this viewpoint. As second tier and third tier cities have not been gone through such mega development exposure, it remains an assumption only. Gone are the days when there was no chance of urbanization in smaller cities and they were completely out of the picture. Today, these less developed cities are emerging as potential competitors to the metropolitans and ideally posed for real estate developments. Real estate developers just need to capitalize this changing shift at the right time which has arrived.

Taking this route, real estate gurus will have the following advantages to maximize their profits.

Greater Land for Construction

As land prices are relatively lower away from big cities, developers can acquire more land as compared to metropolitans. It would almost double their opportunities by wider extension multiplied with vertical use of land.

Lower Costs of Labor

In these small cities, labor workforce is available at lesser wages which can reduce the building costs. Eventually for the mega projects, it will be a significant saving from the budget reserved for labor which can be utilized somewhere else. It will also open up opportunities for construction-workers who use to move towards bigger cities to earn for their living.

Wider Expansion of the Business

Real estate developers can expand their businesses far and wide by investing in smaller cities. They will come out of box of metropolitans where scope of their work is getting limited. It will provide them a chance to get more for their money as well.

Access to Majority

Starting real estate projects in second tier or third tier cities will give real estate investors an access to the majority of Pakistani market. At present, they are targeting only limited number of audience living in major cities and constantly ignoring the rest. Having the larger chunk of population accessible through their projects, real estate developers can get out maximum of their potential.


As big cities like Karachi, Lahore, and Islamabad have reached to the saturation level, the new real estate projects in the smaller cities are needed right now. The success of a few housing societies debuted in these areas proves that there is huge demand for residential projects there. In fact people who are flocking towards big cities actually belong to these underdeveloped areas and want to enjoy standard housing luxuries.

For more updates from country’s real estate sector, keep visiting Universal Property Network. Feel free to ask for guidance from our professional consultants in property investments.



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