Checklist for buying commercial property in Pakistan

Key points, you will learn here:

– Collect the Basic Information

– Conduct Building Inspection

– Assess Tenant Information

– Review Statements & Agreements

– Check Property Documents

 There are a lot of things one must take into account while buying or leasing commercial property in Pakistan. However, since evaluating a potential investment can be rather overwhelming. Even seasoned investors tend to make mistakes that can end in a ruin. If you want to avoid blunders read the whole blog. It will help to learn what questions to ask. When buying commercial property and which documents to demand?

The main types of commercial properties in Pakistan are plots, as well as shops, offices and warehouses. The following checklist guide for buying commercial property will be getting an ideal property.



You must look out the following things when buying commercial property.


 The first step for buying a commercial property in Pakistan is to collect all the basic information. Basic property information includes, the size of the building, number of floors, types of available properties, total commercial units, size of the parking area, as well as zoning, and availability of civic amenities.

After getting the above-mentioned details, it is time to cross-check the information provided by the seller or agent with the public data for further confirmation. Those investing in Lahore can contact the Lahore Development Authority. The investor who invests in Karachi will contact the Sindh Building Control Authority. Whereas buyers in Islamabad can get in touch with the Capital Development Authority.

In addition, It is important to verify every piece of information self-sufficiently instead of trusting the seller’s word.


After collecting the basic property information, another step is to conduct building inspection (utilities, structure and facilities). Commercial property investment is usually considered more expensive. So, for this purpose the investors must take the services of some experts to inspect the roof, as well as walls, windows and the whole structure.


Following are the pros and cons of buying a building that is already occupied by different businesses. On the bright side, you won’t have to publicize or look for new tenants, simply renew the existing contracts. On the other side, you will probably have to make amendments to ensure a steady rental income. Therefore, it is necessary to gather information about the present tenants to avoid future loss. So, before you sign below any dotted line, gather as much information about the tenants as possible. You need to be aware of what kind of businesses are operating out. Moreover, you should also know about the monthly rent, security deposits, and utility obligations etc. In the second case you must have to be careful while buying a property. 

To buy a commercial property in Pakistan:

it is also important to examine the financial stability of each tenant to ensure that they won’t default on their payments. Studying the business models will give you a fair idea about their ability to pay the rent. Additionally, since commercial rent agreements the investor must need to know outstanding liens and litigations of each tenant. A business with a history of financial troubles and a negative impact on the reputation of your property can also affect your rental yield. You need to consider these guidelines before investing in a building, office space or shop.


You may have conducted a physical inspection of the property that you are planning to buy, but what about reviewing? Before buying commercial property in Pakistan, it’s better to review or recheck a few things such as building permits, approved plans, architectural drawings, environmental assessments, zoning documents, financial statements and building code violations. also require information about any past and present litigation issues. As well as must receive and review different service contracts. Apart from the verification, check whether they can be terminated without penalty. Furthermore, Insurance coverage is also something that needs to be discussed at this stage.


The final step in buying a commercial property in Pakistan is receiving and verifying the paperwork. Moving on, here are some of the most important documents you must check before going ahead with your property investment.

1.  Sales Deed

2.  Mother Deed

3.  Approved Plan of the Property

4.  Bank Approval Certificate

5.  Encumbrance Certificate

6.  Power of Attorney

7.  Property Tax Receipts

8.  Completion Certificate

Whether you are buying or leasing commercial property in Pakistan, always be extra cautious to ensure you don’t miss out any details. Moreover, hiring experts for building inspection may be a little costly, but you must remember that spending a few thousand rupees on due thoroughness is a far better investment than losing.

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