With increased market turmoil and subpar financial instrument performance, uncertainty has become a fact for investors. As a result, investors are looking for alternative assets that do not fall under the traditional asset class of stocks and bonds, have unique characteristics, and have little to no correlation to traditional assets so they can increase a portfolio’s diversification benefits. A wonderful project in Rawalpindi titled Rudn Enclave Rawalpindi strives to give its residents a serene and pleasant way of living.
Real assets are physical possessions like real estate and precious metals that serve as a store of value. Initially drew institutional investors, but changes in the financial markets, the state of the economy, and political unpredictability have forced private investors to think about these as different investment choices.
Because real assets have proven to behave differently than traditional investments in a variety of economic and market conditions over the past ten years, institutional investors have enjoyed greater returns from real assets than traditional investments. Individual investors can also prepare for surprises by including some real assets in their portfolios.
Investors in emerging economies like Pakistan, which experience uncertainty more frequently, are still ignorant of the benefits of diversification offered by such assets, despite alternative investments being more and more popular among investors in established countries like the UK and the US.
Political Instability in Pakistan
All economies are highly unpredictable, and Pakistan’s economy is no exception. Its lengthy history demonstrates the numerous uncertainties that have adversely impacted it, with economic and political uncertainty among the most prevalent and having a substantial impact on Pakistan’s investing behavior.
Pakistan, which is placed 189th out of 195 nations in the World Bank’s worldwide rating for the period 1996–2019, is one of the most politically unstable nations in the world. Despite recent economic growth indicating it will become an emerging market, it has yet to achieve political stability.
As a result, Pakistani investors must look for secure investment choices in order to manage the market and political unpredictability. Real estate is discovered to be a safe refuge for Pakistani investors. Rudn enclave Rawalpindi is an emerging real estate investment opportunity for people to invest in guaranteed and safe real estate projects.
A Haven for Safety in Pakistan: Real Estate
Real estate is seen as a value-added investment since it may be used as a source of income and has the potential to appreciate. A new trend among investors nowadays is to invest in more tangible assets, such as real estate.
Since Pakistan presently spends USD 5.2 billion on building, the real estate industry is now one that is rapidly expanding. However, the present growth trends are still insufficient to meet the demand for main living amenities, necessitating additional expansion of the real estate industry.
A 75-day COVID-19 lockdown has had a major influence on Pakistan’s general economy, although firms have also been observed to rebound following the lockdown. The same is true for Pakistan’s real estate sector, which is gaining speed from the 2021 to present as a result of growing investments in real estate developments. Intentional investors may thus be drawn to Pakistan’s real estate market.
Real estate indicates a negative link with both political turmoil and gold. Real estate, according to the stock market, goes in the opposite direction of all of these assets. Real estate meets the criterion for being a suitable diversifier for Pakistani investors’ investment portfolios, especially to deal with the risk of political uncertainty, since it is claimed that an asset having lower or no connection with other assets might give better diversity in portfolios.
According to numerous studies, Pakistani investors should think about real estate as an alternative investment for diversification purposes because the country’s stock exchange has a significant impact on the country’s economic and political unpredictability. Real estate offers even better protection than gold, so Pakistani investors should include real estate in their portfolios. For real estate investments, the best opportunity your will get is Rudn enclave Rawalpindi.