Various Property Types: Plots vs Apartments vs Villas

Various Property Types: Plots vs Apartments vs Villas


The plots are preferred by those who seek the freedom to build and design their own homes, and by investors who require fewer capital gains compared to the amount invested. If you plan to use the land to build a home, you must have strong financial support as you end up paying for land, construction, architects, designers, and labor costs. It is also a difficult and time-consuming task to acquire a plot and build a house. Banks offer loans for the purchase of land, but the conditions are different and relatively strict compared to buying an apartment.

For example, the maximum amount of loan limit for buying land is usually less than the amount available for buildings constructed. This means that you may have to spend a large amount of money as a down payment when purchasing a land plot.

Income opportunities

Unlike apartments, land plots cannot be rented out unless you build a house on them. However, the plots are considered to provide a higher capital appreciation rate than the structures built. This is true when the market is profitable and demand exceeds supply.


Apartments are increasingly becoming the most affordable type of real estate in Pakistan. Its popularity can be attributed to reasons that include but are not limited to, a modern look, modern conveniences, and better security. In addition, the developer usually takes care of issues related to water supply, energy, and maintenance. Hence, if you are buying an end-use property, apartments may be the best choice if you do not want the freedom to design your own home. Since these units are readily available, you also have many options to choose from, depending on your location, budget, and other preferences.

Income opportunities

If the apartment is not planned to be occupied immediately, you can rent it out and get rid of the burden of equal monthly payments if you took out a loan to buy a house.

Another advantage of investing in an apartment on a land/plot or in a home is the higher resale value and a broader customer base. Since the demand for these properties is usually the highest among all types of real estate, it is relatively easier to find a buyer for your apartment than for a separate house or residential plot.

However, the rate of growth of the price of an apartment may be lower than the cost of the plot. The price of land is usually estimated. Moreover, the structure may experience a certain degree of reduction if depreciation is taken into account over a period of time.

Houses/ Villas

Villas or independent houses are preferred by those who want the privacy of an independent home but want to avoid the hassle of building a home. One of the main disadvantages of these blocks is the lack of security, energy, and backup water supply, which are usually provided by residential complexes. However, developers today offer these units in gated communities with both individual and shared amenities.

Income opportunities

The monthly rent for these units is usually much higher than apartment rentals. However, due to the associated rise in prices, it is difficult to find tenants.

Vacation Homes

Investing in a vacation home is a trend that has been steadily recovering over the past few years. As sales revenue rises, people may acquire more than one property, especially in a location that will serve as their vacation home during their annual family holidays.

Income Opportunities

The main advantage of investing in holiday homes is that you can generate more rental income through them. If you choose a good location, vacation homes tend to attract many travelers and tourists during the high season in the area. The resulting rental income can be used to pay for mortgages and other expenses related to real estate.

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