We will discuss the Impacts of Changing Land Dimensions on Real Estate. In Pakistan, land is a valuable and long-term asset, with measurements traditionally based on units like Square Yards (Gazz), and Square Meters, especially Marla and Kanal.
However, recent changes in land dimensions and land measurement standards have raised questions about their impact on the real estate market.
Impacts of Changing Land Dimensions on Real Estate
This blog will explore the implications and benefits of the decrease in Marla size, from 272 square feet to 225 square feet, in the real estate sector in Pakistan. Additionally, we will discuss the potential benefits of this change for the real estate industry.
Example: 1 Marla = 225 Square Feet, 20.9 Square Meters, 25 Square Yards (Gazz)
Read: Low-Cost Housing Societies in Islamabad
Changing Land Dimensions Impact on Property Prices
One of the most significant effects of the reduction in Marla size is its impact on property prices. In Pakistan, property prices are often quoted on a per-Marla basis.
As the size of a Marla has decreased, properties that were once measured as, for example, 10 Marlas, are now measured as more Marlas, leading to the perception of rising property prices.
This increase in apparent property prices can be tough too. On one hand, it may be difficult for some potential buyers, especially those on a budget, to enter the market.
On the other hand, it can benefit property sellers and developers, who can command higher prices for their properties in terms of the new, smaller Marla measurement.
Impact on Land Valuation
Land valuation plays a critical role in the real estate sector. The change in Marla size can affect how properties are appraised and assessed for their value.
Since the same piece of land now contains more Marlas than before, its perceived value has increased, potentially leading to higher tax assessments and property valuations.
Property owners may find themselves paying more in property taxes due to the increased value of their land.
On the flip side, this can be beneficial for local governments, as it can lead to higher tax revenues, which can be invested in infrastructure development and public services.
Benefits to the Real Estate Industry
While the decrease in Marla’s size has raised some concerns and challenges, it also brings potential benefits to the real estate industry.
Increased Profit Margins for Developers
Developers can benefit from the perception of rising property prices. They can sell smaller Marla properties at higher rates, leading to increased profit margins.
Improved Land Utilization
The smaller Marla size encourages more efficient land utilization. Developers may design projects that make better use of available land, leading to more sustainable urban planning and potentially reducing urban sprawl.
Enhanced Transparency
Standardized measurements can improve transparency in real estate transactions. Buyers can more easily compare properties and their prices, making informed decisions.
Read: How to Purchase and Sale Property In Pakistan with Step-By-Step Guidelines
Increased Investment
Higher perceived property values can attract more domestic and foreign investors to the Pakistani real estate market, stimulating economic growth in the sector.
Conclusion
Impacts of Changing Land Dimensions on Real Estate are when the reduction in Marla size in Pakistan from 272 square feet to 225 square feet has brought about significant changes in the real estate sector. It also offers benefits such as increased profit margins for developers, improved land utilization, enhanced transparency, and increased investment.
Real estate professionals, government authorities, and property buyers and sellers must adapt to these new measurements to navigate the evolving landscape of the Pakistani real estate market successfully.
Over time, as the industry adjusts, the benefits of these changes are likely to outweigh the initial challenges, contributing to a more dynamic and transparent real estate sector in Pakistan. if you have any queries contact Nexus Ideas.
Reviewed By Mr.Rizwan Sajjad
