How to Calculate ROI Before Investing In Property

How to Calculate ROI Before Investing In Property


Profit-making is the prime goal of potential investors while investing somewhere. Businesses that offer more output attract more investment. Fortunately, the real estate sector is one of them, considered one of the most lucrative sectors in Pakistan. Real estate has shown a lot of potential in recent years. Though the real estate sector offers high profit, an investor still needs to consider some factors, such as ROI.

What is ROI, and How to Calculate it?

ROI is the return on investment. It is the profit that you generate from an investment. It helps you identify the best real estate investment in Pakistan. In simple words, you can say that it is the income that you get from net income by excluding costs or expenses The deduction of expenses from profit or net income is ROI.

The formula to calculate the ROI is as follows

ROI% = ( Net return on investment) / ( Cost of investment) × 100

Gain on investment – the cost of investment/cost of investment

Why everyone prefers real estate investment? Because it offers a high ROI. Though we cannot predict everything and final gains cannot be calculated accurately; it is crucial to calculate ROI before any investment. That’s why you need to include every expense you might bear in that investment, such as taxes, insurance, property management fees, utilities, etc.

ROI calculation helps you to predict whether a particular investment is good or not. For example, if you calculate ROI before investing in Mall of Korang, you will not have a second thought to invest in Korang Mall because it is one of the best real estate investments in Pakistan.

Why Mall of Korang is a Good Investment?

Mall of Korang is located at a very pivotal location. So, it has locational advantages, and secondly, the amenities it offers are peerless. Further, its proximity to Twin Cities adds value to it.

Based on these factors, one can easily find out that the Mall of Korang is the best real estate investment in Islamabad.

Why do We need to Calculate ROI?

Based on your ROI calculations, you can easily decide whether to invest in a particular area.

This calculation can foster your investment and profit and thus grows your business.

ROI calculation makes decision-making easier.

It helps you to systemize your real estate profit potential.

It may save your investment by restricting you from an unwise investment.

ROI helps you to choose the most appropriate option among the few.

Factors Affecting ROI

Several factors can facilitate or perish your investment.


The location of the property matters the most. If someone wants to buy a property, the first thing that comes to his mind is the property’s location. If a property is located at a prime location, its cost escalates in no time and vice versa.

For example, suppose a property is located in Islamabad, then definitely in a short span. In that case, your investment will be multiplied, and investment in a prominent area is considered the best real estate investing option.


People are looking for a modern lifestyle. The utmost desire of a family is to live a luxurious lifestyle. Nowadays, besides basic needs, modern facilities attract investors and increase the demand for property. For example, the Sanabil Garden Housing Society offers its residents state-of-the-art facilities, making it one of the best real estate investments in Islamabad. So, undoubtedly, people will attract to it.

Security Measures

Unfortunately, in our country, it has become a concern. People will definitely prefer to live in a more secure place such as Islamabad. If the security measures of a housing society or a place are poor, people like to migrate instead of investing in that area. Appropriate measures have been taken in Sanabal Garden Housing Society to provide you with a safe and secure environment to enjoy your life.

What is the Impact of Market Value on ROI?

The market value remains fluctuating. So, it is nearly impossible to calculate a static value. This does not allow you to predict ROI accurately. If the market value of your property is increasing, you might earn more profit than the estimated one. But if the situation changes you’re your calculated profit margin may decrease.


Town One is a project of the best real estate marketing company which is called Al Safa Marketing and it is located in a very beautiful location with all the basic facilities of life. Town One is very different from other societies in Islamabad due to its facilities and extraordinary location. Enjoy the natural beauty from your rooftop. Easily accessible from Bahria Enclave, Naval Farm Houses, and Zero Point. Schools, Colleges, Family Parks, Shopping Malls, well-equipped gyms, and other facilities are available.


Leave a Comment

Your email address will not be published. Required fields are marked *