📏 Price Per Sq. Ft vs ROI-Based Pricing: What Works Best?

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.