- Real estate dilemma for dentists amid economic turmoil
The economic condition of the country has deteriorated due to several factors including political instability, declining exports, high import bills, energy crises, and dependency on international loans. Inflation has eroded the real value of money, and many professionals are finding it difficult to maintain their standard of living. The rising cost of dental materials, equipment and clinic maintenance has directly affected dentists’ profit margins. Simultaneously, patients’ ability to afford dental treatment has declined, leading to reduced patient inflow in private practices.
In this backdrop, traditional savings have lost their value due to currency depreciation. Bank savings rates fail to beat inflation, making fixed deposits and savings accounts less attractive. Therefore, many professionals, including dentists, are looking towards real estate as a relatively safer investment option that can offer long-term stability and appreciation.
Real Estate as a Safe Haven
Real estate generally serves as a hedge against inflation. When the economy weakens and currency value declines, property prices and rents tend to rise, preserving the real value of investment. Unlike stock markets that are volatile and unpredictable, real estate investments provide multiple benefits as tangible ownership, passive income and reduces tax burden.
For dentists, who by and large, have steady income from their practices, real estate offers a reliable opportunity for diversification. Investing in land, residential plots, or commercial properties can secure future financial stability and provide an alternative income stream. Moreover, as the value of money decreases, the value of real assets such as land tends to appreciate over time, offering long-term capital gains. Real estate investment do provide an alternative source of income through property appreciation or rental yields. Owning a small commercial property or apartment for rent can help stabilize finances during slow business periods.
Moreover, many dentists dream of owning their own dental clinic building rather than paying rent. Buying property early in one’s career can save future rent costs and build long-term equity. Over the period of time, the property itself becomes an asset that appreciates in value.
Challenges of Real Estate Investment
However, investing in real estate during an economic crisis is not without risks. Property prices may be temporarily inflated due to speculation. In addition, liquidity is a major concern. Unlike stocks or bonds, property cannot be sold quickly when cash is needed. Real estate also requires large initial capital, documentation and maintenance costs.
Moreover, in some areas, lack of regulatory control and fraudulent schemes have caused significant financial losses to investors. Dentists, who may not be experienced in real estate dealings, must be cautious and informed before entering this market. Proper due diligence, consultation with real estate experts and verification of property documents are essential steps to avoid pitfalls.
Way forward
Dental professionals should attend property seminars, consult investment advisors, and even pursue short courses in real estate management. This trend highlights a broader professional evolution; from a purely service-oriented mindset to a more entrepreneurial and investment-driven approach.
Professional bodies and dental institutions should also recognize the financial strain faced by dental clinicians. They can organize financial literacy workshops and real estate investment awareness programs. Universities can also guide young graduates about managing finances, starting clinics efficiently, and understanding real-world economic challenges. Promoting mentorship between senior and junior dentists can help newer practitioners avoid financial missteps early in their careers.
The writer is a Dean, Bhitai Dental & Medcial College, Mirpurkhas