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The real estate landscape in Pakistan has long been dominated by residential and commercial developments. However, industrial parks are emerging as a transformative force, offering significant opportunities for investors and businesses alike. At PropTech Convention ’24, Mr. Ahmed Patel, Director of Patel Group, shed light on the crucial role industrial parks play in Pakistan’s economic and real estate growth. His insights highlighted how small-scale industries, warehousing, and manufacturing zones can drive sustainable development and unlock new investment prospects.

The Rise of Industrial Parks in Pakistan

Pakistan’s industrial sector has immense potential, yet many small businesses struggle due to a lack of proper infrastructure. Patel Group, with over 45 years of experience, has been a pioneer in bridging this gap by developing state-of-the-art industrial parks. These parks provide essential facilities, including electricity, gas, water, and high-quality road infrastructure, ensuring businesses can operate smoothly without logistical challenges.

The key takeaway from Ahmed Patel’s speech was that 80% of Pakistan’s industrialists belong to the small-scale sector. These businesses often have revenue below 100 million PKR and require accessible and affordable industrial spaces to flourish. Patel Group’s industrial parks cater precisely to these needs, offering secure, well-equipped spaces where industries can grow without excessive overhead costs.

Why Industrial Parks Are a Better Investment Than Traditional Real Estate

While traditional real estate investments such as residential apartments, houses, and office spaces remain popular, industrial real estate in Pakistan presents an often-overlooked opportunity. Ahmed Patel emphasized that small industrial plots are easier to liquidate compared to larger commercial properties. A 240 or 320 square-yard plot in an industrial park has greater market demand, making it a lucrative asset for investors.

Moreover, industrial investments offer higher rental yields compared to traditional real estate. Residential rental yields in Pakistan typically range between 3-4%, whereas a well-developed warehouse in an industrial park can yield returns of 7-8%. This makes warehousing and small industrial plots an attractive option for long-term investors.

Strategic Locations for Industrial Parks

To maximize growth, Patel Group has focused on developing industrial parks in high-potential areas where population growth and market expansion naturally drive appreciation in property values. Some of the notable locations include:

• SITE-II (Sindh Industrial Trading Estate-II)
  A rapidly growing industrial hub due to its proximity to Gulshan-e-Maymar and Northern Karachi.

• Northern Bypass Industrial Zone
  A strategic location that connects Karachi’s major trade routes, making it ideal for manufacturing and logistics businesses.

• Hawksbay Industrial Parks
  Situated near Karachi’s port area, this location is perfect for businesses involved in exports and imports.

By establishing industrial zones in these areas, Patel Group ensures high capital appreciation and sustainable industrial growth, benefiting both entrepreneurs and investors.

Affordable Warehousing: A High-Demand Asset

Warehousing plays a crucial role in Pakistan’s industrial ecosystem, yet many businesses struggle with high construction costs. Ahmed Patel shared an insightful comparison:

• A traditionally built warehouse costs around Rs. 3,000 per square foot.
• However, Patel Group leverages in-house construction teams to deliver high-quality warehouses at half the price, reducing costs to Rs. 1,500 per square foot.

With such cost-effective solutions, businesses can recoup their investment in as little as three years while benefiting from consistent rental income and property appreciation.

The Need for Localized Manufacturing

Another key point highlighted by Ahmed Patel was the importance of reducing Pakistan’s dependency on imports. The last 1.5 years have shown significant economic volatility, with currency depreciation affecting import-dependent industries. By focusing on local manufacturing, Pakistan can stabilize its economy and reduce its reliance on foreign goods.

Industrial parks facilitate this shift by offering ready-to-operate spaces where manufacturers can set up factories without delays. Patel Group ensures that businesses in their industrial zones receive all necessary approvals, streamlining the process for investors.

Future Expansion Plans

Looking ahead, Patel Group is committed to expanding its industrial parks network to accommodate the growing demand for industrial real estate in Pakistan. The company is actively working on:

• New industrial projects in SITE-II
• Expansion of warehousing facilities at Northern Bypass
• Development of small-scale industrial hubs in Hawksbay

By continuing to develop smart industrial parks, Patel Group aims to empower local businesses, drive economic growth, and offer investors a high-yielding alternative to traditional real estate.

Final Thoughts: The Future of Industrial Parks in Pakistan

As real estate investors and businesses explore diversified opportunities, industrial parks are proving to be a game-changer. With secure infrastructure, high rental yields, and strategic locations, these industrial zones are set to redefine Pakistan’s investment landscape.

Ahmed Patel’s message at PropTech Convention 2024 was clear:
Pakistan’s future lies in industrial expansion, localized manufacturing, and smart real estate investments. By shifting focus from traditional property investments to industrial real estate, investors can tap into one of the most promising sectors for long-term growth.

For those looking to invest in high-potential industrial parks in Pakistan, now is the time to take action.