📏 Price Per Sq. Ft vs ROI-Based Pricing: What Works Best?
Markaz
Last Update il y a 3 jours
There are two common pricing strategies:
1. Price Per Square Foot
Widely used for plots, vacant shops, and offices.
Easy to compare with other listings.
Common in high-footfall commercial zones.
Formula:
Total Price = Area (sq. ft) × Market Rate (per sq. ft)
2. ROI-Based Pricing (For Rented Properties)
Best for income-generating assets.
Appeals to investors looking at long-term returns.
Formula:
Value = Annual Net Rental Income / Desired ROI
Example:
If your shop earns PKR 1.2 million per year and buyers expect 6% ROI:
1,200,000 / 0.06 = PKR 20 million market price
Which One to Use?
Vacant properties: Use per sq. ft pricing.
Rented properties: Use ROI-based pricing + highlight lease terms.