IN THIS POST
– Top Areas to Buy Plots in Karachi
– Top Areas to Buy Houses in Karachi
– Top Areas to Buy Flats in Karachi
– Top Areas to Rent Houses in Karachi
– Top Areas to Rent Flats in Karachi
– Major Developments in Karachi
2019 was an eventful year, particularly for the real estate sector, with entirely different pre and post-budget market conditions. Since the year has drawn to a close, we’ve tabulated the user data available at Zameen and painted a picture of just how Karachi’s property market fared during the year. Based on the indicators, data, and our analyses, we have every reason to believe that 2020 will see the property market maturing further and reaching new highs, the kind we are witnessing at present in the stock market.
After extensive study of the current data (2019) and analysing it against the market conditions of 2018, we’re now in a position to share some key stats and trends related to buying as well as renting flats, houses, and residential plots in Karachi—Pakistan’s economic hub and the city that practically drives the real estate industry.
Most Popular Areas with Plots for Sale in Karachi
Bahria Town, Karachi
As per Zameen.com’s user data presented above, Bahria Town was the favourite for real estate investments. When it came to residential plots for sale in Karachi, both buyers and investors flocked the society for a variety of reasons. Firstly, the unique combination of world-class amenities, infrastructure, and an unadulterated sense of community living acts as a magnate for genuine buyers looking for a peaceful and secure place to call home. Secondly, since investors are confident about the society’s present and future, coupled with the transparency and surety of paperwork, they view the community as a near-perfect and sure-shot investment, one that can return better-than-expected dividends in the future. Lastly, Bahria Town draws in large crowds of visitors by boasting some fantastic entertainment activities, such as the Danzoo, Bahria Adventure Land, international food joints, and replicas of famous monuments. The visitors cannot help but get impressed by the lifestyle available in the housing community, motivating them to consider the project as their new address.
Owing to these reasons, the society witnessed a price spike in all plot sizes in almost all the precincts, continuing its growth spur throughout the year. While plots of 120 square yards in Bahria Town were on the market for an average price of PKR 25 lakh, 240 square yard plots sold for an average price of PKR 58 lakh, recording a hike of nearly 36.47% over 2018. This doesn’t come as a surprise since more precincts in Bahria Sports City and Bahria Overseas Blocks began to offer plot bookings and possessions in 2019. Bahria Town also recorded sizable price growth in larger plots of 500 square yards, with their average prices hovering around PKR 85 lakh during 2019.
Scheme 33
The next area that dominated Karachi’s property market in 2019 was Scheme 33, also known locally as Gulzar-e-Hijri, where once again, we saw a rise in average prices for 120, 240, and 500 square yards residential plots. While plots of 120 square yards in Scheme 33 were on sale for PKR 47 lakh on average, a 240 square yards plot could be bought at an average rate of PKR 1.06 crore. The difference may seem huge but 240 square yards and 500 square yards are the two most popular sizes in Scheme 33. This is further supported by the data we’ve collected, where 500 square yards plots saw an uptick in prices by 21.88% and were on the market for PKR 1.95 crore on average during 2019. The expansion of the city toward its outskirts and the rapid development of housing communities in Scheme 33 has pushed the demand of the area to new heights. In contrast, 1,000 square yards plots in Scheme 33 were sold for an average sum of PKR 5 crore.
Other Areas
Other areas that were quite popular among property seekers during 2019 for investment in Karachi’s real estate sector were Gadap Town, DHA, DHA City, Karachi, Naya Nazimabad, Bin Qasim Town, Gulistan-e-Jauhar, Malir, and Cantt. Gadap Town remained in the spotlight not only for neighbouring Bahria Town, Karachi but also because the area saw the launch of quite a few new residential societies. Naya Nazimabad, on the other hand, continued to witness further infrastructure developments, such as the Jamia Masjid, the Gymkhana, and road extensions, keeping the society in the news. Seeing DHA, Gulistan-e-Jauhar, Malir, and Cantt on our list isn’t a surprise since these areas are considered central to Karachi and feature everything that property seekers need for a comfortable life.
Newer residential schemes in Malir under the Malir Development Authority (MDA), such as Taiser Town Scheme 45 and Malir Housing Scheme 1 have resulted in a drop in average prices of 120 square yards for the area since more and more affordable plots for investors are being launched here, attracting much attention in these newer communities. However, the development remains considerably slow in comparison to other localities of Karachi.
DHA City is another area that has seen an overall drop in the average prices of all plot sizes. The primary reason for this is the less-than-expected development pace of the housing society, which might have made investors look for other investment options in the city, bringing average prices down a bit during the year. However, Sector 3 is DHA City’s most developed sector and is ready for plot possession and construction, while Sectors 2, 5, 7, 9, 12, 13, and 14 are also being developed gradually. The time and prices are currently ideal for investment in a plot in DHA City, particularly because there are limited plots available in the development, and prices are expected to touch and surpass their former heights once the overall development of the project speeds up.
Meanwhile, we saw a significant rise in average prices for plots in DHA, Karachi, primarily because investment opportunities are rapidly opening up in the new Phase 7 and Phase 8 Extensions, which hold significant investment potential for Karachi’s elite. Two other areas that saw a gradual increase in prices are Gulistan-e-Jauhar and Cantt, both of which are densely populated localities, spread over large areas, holding immense charm for home buyers looking to develop their home from the ground up, mainly due to their proximity to commercial areas and easy access to public transport. The high demand for properties pushed the average prices up in these two mixed-use real estate hubs, and trends indicate that this growth will continue well into 2020 and beyond.
Most Popular Areas with Plots for Sale in Bahria Town
Built on the Super Highway (M-9 Motorway), Bahria Town is located on the outskirts of Karachi, encompassing all major facilities and amenities within its walls so that residents of the community never need to wander out of town for the bare essentials. With Bahria Golf City, Bahria Sports City, Bahria Paradise, Bahria Hills, and Bahria Overseas Blocks all being rapidly developed, it’s no surprise that the project has become an almost-default choice of home hunters and investors in Karachi, and the data backs this notion well.
Owing to its central location on the 400-foot wide Jinnah Avenue, Precinct 12 remained the top locality in Bahria Town for residential plots for sale in Karachi. The precinct mainly features 120 square yards and 240 square yards plots for sale at a starting price of PKR 30 lakh and PKR 40 lakh, respectively. Built on the other side of Jinnah Avenue, opposite Precinct 12, Precinct 15 is the next most popular sub-district in the project. The precinct is divided into two parts with Precinct 15 Proper and 15-A being home to an institutional zone, while 15-B welcomes investments in 500 square yard plots for a starting price of PKR 54 lakh.
These top two sub-areas are followed by Precinct 27, which is again sub-divided into Precinct 27 Proper and 27-A, both located on either side of Jinnah Avenue. Precinct 27-A is also adjacent to Precinct 20, which is commonly known as Bahria Golf City. A 500 square yards plot in Precinct 27-A can be found on the market carrying a minimum price tag of PKR 52 lakh. The next two precincts that are most preferred by property hunters on Zameen.com are Precinct 30 and Precinct 6. Precinct 30 enjoys a prime location on Jinnah Avenue, keeping its investment potential high. Meanwhile, Precinct 6 is a hub of amenities, including a lake, a sports complex, and a dedicated commercial district, along with being located between the Eiffel Tower replica at its southern end and the replica of the Statue of Liberty at its northern tip.
Most Popular Areas with Houses for Sale in Karachi
Bahria Town, Karachi
When we talk about real estate investment in Karachi’s property market, Bahria Town leads on all possible fronts, and it’s no different when we talk about the best areas with houses for sale in Karachi. Although most Karachiites are used to apartment living, a large percentage of the people, including the people living in apartments, dream about owning a house. Since land is equally scarce and expensive in the central city, browsing options near the Super Highway is not only the next best alternative but comes as a means of realising their dream.
With regards to Bahria Town, we saw a mixed market, with prices swinging freely and touching both extremes. This is fairly reflective of how, when, and which precincts were launched during the year and what was the size of the house in those particular precincts. Overall, only a handful of precincts that were launched during the year featured 80 square yards houses, while 120 square yards and 240 square yards houses saw stability in prices. Thus, average prices for the latter sizes remained near the PKR 90 lakh mark.
In comparison, houses of 500 square yards in Bahria Town witnessed a major dip of 32.47%, with homes being sold for PKR 2.6 crore on average. The drop in prices was seen after a large number of Bahria Paradise Luxury Villas of 500 square yards were put on the market, coming with not just the 4-year instalment plan offered by Bahria, but also on discounted rates, where a 25% discount was offered. This price fluctuation brought down the overall market prices of houses of this size in Bahria Town.
DHA, Karachi
The second-most popular locality in Karachi’s real estate sector for houses for sale was DHA, where extensions in Phase 7 and 8 opened up new avenues for investment. DHA has also always been versatile in terms of plot and house sizes, with average prices of 120 square yards houses remaining around PKR 3.35 crore, since this has always been a fairly popular option for investors. Larger homes of 240 square yards and 500 square yards in DHA, Karachi, were also on the market for the average rates of PKR 5.1 crore and 10.5 crore respectively.
Other Areas
Karachi’s house market remained reasonably stable throughout the year, though, with North Karachi, Gadap Town, Gulistan-e-Jauhar, Scheme 33, Gulshan-e-Iqbal Town, North Nazimabad, Malir, and Federal B Area, following the top two localities with houses for sale in the city. All of these areas are known for featuring houses or bungalows, whether single or double-storey, with close access to commercial districts and high investment potential. Plus, since these areas are largely a part of what’s considered to be the central city, their average prices remained mostly on the positive and higher side.
Most Popular Areas with Houses for Sale in Bahria Town
Precinct 2 led the way in Bahria Town, Karachi, and was the most popular when it came to houses for sale. Also known as Quaid Block, the precinct is directly behind the Overseas Block and connects to Jinnah Avenue. The precinct is home to Quaid Villas and Iqbal Villas. While Quaid Villas feature houses of 240 square yards at a starting price of PKR 1.65 crore, Iqbal Villas cater to the 125 square yards category, with investments beginning from PKR 1.19 crore.
The next most popular sub-area in Bahria Town was Precinct 10, which is informally divided into 10-A and 10-B, based not just on the different sizes of homes on offer, but because the sectors are separated by a strip of commercial plots, residential apartments, and public-use buildings. With respect to the property sizes available here, Precinct 10-A is dedicated to 240 square yards villas available for purchase at a starting price of PKR 1.08 crore. In contrast, Precinct 10-B focuses entirely on 125 square yards houses that can be yours for a minimum investment of PKR 95 lakh.
Precinct 11 was next, which is another precinct divided into 11-A and 11-B, by a row of commercial buildings in the middle. While Precinct 11-A caters to both 125 square yards and 240 square yards homes, Precinct 11-B is primarily dedicated to houses of 125 square yards. Prices for a 125 square yards house in Precinct 11 begin from PKR 75 lakh, while a 240 square yards villa has a starting price of PKR 1.05 crore.
The remaining two of the top 5 precincts with houses for sale in Bahria Town are Precinct 31 and Bahria Sports City. Precinct 31 majorly features 240 square yards houses for sale. On the other hand, Bahria Sports City is made up of several precincts, with most of the homes currently being offered in Precinct 35.
Most Popular Areas with Flats for Sale in Karachi
Bahria Town, Karachi
Karachi is a city where apartment living is the norm, and high-rises are built in densely populated areas to accommodate more of the populace vertically. Investing in Karachi’s property market often means looking for that ideal flat that can accommodate your family, along with providing the necessary utilities needed to elevate your standard of living. However, recent times have seen a surge in luxury apartment complexes being built, offering everything from rooftop gardens to swimming pools, gymnasiums, car parking, and a formal lobby to greet your guests with round-the-clock security surveillance.
It is with perks like these that people often opt for an apartment for sale in Karachi in comparison to owning a house, and as per the data we’ve gathered, Bahria Town tops the list as the best area here, too. Considering that Bahria Town is home to several high-rise structures currently under construction, the sky-high popularity of the project is a no brainer. The housing society features several 2-bed flats at an average price of PKR 56 lakh, while an apartment containing 3 bedrooms can be bought for PKR 1.09 crore on average.
DHA, Karachi
The next best area for buying a flat in Karachi is DHA. Constant expansions, as well as the luxurious high-rises being built in Phase 8, leave no doubt that DHA is also eager to cater to those elite investors who want to live in DHA but cannot bear the hassle of owning a house and being responsible for its maintenance. An apartment with 2 bedrooms in DHA, Karachi, has an average selling price of PKR 95 lakh, and a 3-bed unit can cost PKR 1.6 crore on average.
Other Areas
Looking at the data above, the next best localities for a flat in Karachi are Gulistan-e-Jauhar, Gulshan-e-Iqbal Town, North Nazimabad, Gadap Town, Scheme 33, North Karachi, Clifton, and Federal B Area. The overall market for 2-bed units remained fairly positive during 2019, and two noteworthy spikes worth mentioning include the 18.18% rise in prices in Gulistan-e-Jauhar and the massive hike of 31.87% in Scheme 33. While Gulistan-e-Jauhar is an already-developed and densely populated area with several affordable apartment options, the development of Scheme 33 has also picked pace, with more people moving here from other areas of Karachi due to the prices of flats being comparatively lower than other developed areas.
Gulistan-e-Jauhar spread over a vast expanse of land and is primarily mixed-used real estate with roadside shops on the ground level and apartments on the floors above. The area is also fairly affordable, compared to many others in the city, and is close to all the significant commute routes in Karachi. In contrast, Scheme 33 is more towards the outskirts of Karachi, but the area is rapidly developing, welcoming many high-rises and apartment complexes, with all the necessities of life nearby.
Most Popular Areas with Flats for Sale in Bahria Town
Bahria Town’s apartment complexes, coupled with the society’s amenities nearby, hold immense charm for those who want to invest in Karachi, but away from the hustle and bustle of a busy city. Once the development of the M-9 Motorway is complete, reaching Bahria Town will be quicker than ever, especially for overseas investors who are heading there straight from Jinnah International Airport.
Within Bahria Town, the most popular apartment block is Bahria Apartments, and it was favoured most by apartment seekers on Zameen.com. Bahria Apartments encompasses all the apartment buildings in the housing community, aside from the sites dedicated to Bahria Heights. Featuring all the essential amenities, a flat with 2 bedrooms in Bahria Apartments can have a starting price of PKR 40 lakh, while a 3-bed option can be on sale for as low as PKR 90 lakh.
Bahria Town’s Precinct 19 is the next most popular area for investing in an apartment within the society. With its ideal location next to Jinnah Avenue and its eastern edge touching the Bahria Day and Night Zoo (Danzoo), Precinct 19 comprises 22 towers offering a range of apartments for sale. A 2-bed flat can be bought here for as low as PKR 40 lakh, while a larger 3 bedroom unit can have prices starting from PKR 90 lakh.
The next most popular sub-district for buying an apartment in Bahria Town, Karachi, was Bahria Heights, which is spread over three separate locations across the housing community. It is a luxury living complex comprising four towering blocks, offering not just comfortable accommodation but also a gym, a spa, a restaurant, a mini-golf course, an indoor swimming pool, car parking, as well as a secure play area for kids in every block. Bahria Heights offers 2-bed luxury apartments at a starting price of PKR 45 lakh.
Most Popular Areas with Houses for Rent in Karachi
DHA, Karachi
Moving on to rental properties in Karachi, an accumulation of the year’s data in relation to Karachi’s real estate sector revealed DHA as the top area for renting a house. The locality is ideal for people looking for a secure and established neighbourhood to rent a property. The average monthly rent for a 120 square yards house here is PKR 1 lakh, while a 240 square yards house can be rented for PKR 1.5 lakh on a monthly basis. Accordingly, a larger 500 square yards house can cost a monthly rent of PKR 2.75 lakh.
Bahria Town, Karachi
DHA is followed by Bahria Town, where rents witnessed a slight decline over the year, with PKR 23,000 being charged as rent per month for a 120 square yards property. Meanwhile, PKR 30,000 was the average monthly rent for a 240 square yards unit in Bahria Town, Karachi.
Other Areas
Bahria Town is then followed by other popular areas for renting a house in Karachi, including Malir, Cantt, Gulistan-e-Jauhar, Gadap Town, Gulshan-e-Iqbal Town, Clifton, Navy Housing Scheme Karsaz, and North Karachi. The data shows a mix of upward and downward trends in rent, with all of these popular areas in Karachi being susceptible to rental fluctuations due to property developments.
Most Popular Areas with Flats for Rent in Karachi
DHA, Karachi
DHA is in the lead again when we discuss flats for rent in Karachi, with the society remaining stable in terms of monthly rent throughout the year. Both 2 and 3-bed apartments are available for rent in DHA. A 2-bed unit can be rented in DHA for PKR 38,000, while an apartment containing 3 bedrooms might charge a monthly rent of PKR 65,000.
Gulistan-e-Jauhar
Following closely behind DHA is Gulistan-e-Jauhar, which has also seen a relatively stable and positive rental year for flats, where 2-bedroom units can be rented for PKR 20,000 per month, whereas 3-bed options can have a monthly rent of PKR 40,000.
Other Areas
Other popular areas for renting a flat in Karachi were Gulshan-e-Iqbal Town, Clifton, Bahria Town, North Nazimabad, Jamshed Town, Cantt, Nazimabad, and Federal B Area, all of which are well-established, and densely populated areas of Karachi, except for Bahria Town. However, the rental market for flats has remained stable and mostly positive for 2019.
Major Developments in Karachi during 2019
While we’ve wrapped up our analysis of Karachi’s property market above, it remains a fact that the real estate sector is largely influenced by the current and upcoming developments in the city. Accordingly, we’re discussing some of the major developments in Karachi during 2019 that have and will further influence the property market as ongoing projects and developments near their completion. Some of the most prominent development projects are:
- Green, Orange, and Red Line BRTs
- Signal-Free Corridor on Shaheed-e-Millat Road
- Extension of the M-9 Motorway
Let’s discuss these major developments in Karachi below.
Green, Orange, and Red Line BRTs
Karachiites have been commuting without a set public transport system in place for years. Now, the ongoing development of not one, but three Bus Rapid Transit (BRT) projects has given them hope that their commutes will be finally made more comfortable, especially in the more densely packed areas of the city. While the Green Line will take commuters back and forth from Surjani Town to I. I. Chundrigar Road, the proposed Orange Line has the shortest route, from Shahrah-e-Quaideen near Orangi Town, up to AO Chowk, near the Board Office. Meanwhile, the Red Line will make the commute easier from Model Colony in Malir to M. A. Jinnah Road, where a Common Corridor will be set up at Numaish so that all the intersecting BRTs have a shared transfer point.
Ease of commute to remote parts of the city and fewer traffic jams will automatically increase property prices in many areas as people flock to the outskirts of the city without worrying about how they will get to work in the morning. Out of the three BRTs mentioned above, the Green Line is expected to reach completion by March 2020, while the other two are still under early development.
Signal-Free Corridor on Shaheed-e-Millat Road
Shaheed-e-Millat Road is a major artery in Karachi, where commuters have a straight route from Korangi up to University Road, allowing people working in the industrial area to head home to northern parts of the city via a single route. However, over the years, rush-hour traffic made this route unpassable, resulting in severe jams at Tipu Sultan Road, at the Hill Park Chowrangi, and then at the intersection between Tariq Road and Bahadurabad.
A project was then initiated to make this thoroughfare into a signal-free corridor to ease the flow of traffic and make the commute easier for residents and commuters. Accordingly, two underpasses were built during 2019 at the Hill Park and Tariq Road intersections, out of which the Tariq Road underpass has already been opened for traffic. Construction on the Hill Park underpass is also nearing completion, and together, these developments will ease the flow of traffic on Shaheed-e-Millat Road. It is important to note that the Tipu Sultan Flyover inaugurated last year was also part of this very project.
Once traffic jams are fewer, residents in some of the apartment complexes on Shaheed-e-Millat Road might actually breathe a sigh of relief, since they will no longer have to manoeuvre through rush-hour traffic to get home. It remains to be seen as to how these developments affect the property market in Karachi over time. However, going by previous trends, a hike in property prices can be expected.
Extension of the M-9 Motorway
The M-9 Motorway, also known as the Super Highway, is under development and nearing completion. Currently, people living in the residential communities built on the highway, such as Bahria Town and DHA City, are facing difficulty in their daily commutes, in spite of the motorway being open for traffic. However, once it is complete, it will be a 6-lane route connecting Karachi to the nearest city of Hyderabad, around 1.5 to 2 hours away.
It is expected that many of the housing societies on the M-9 will benefit positively from its completion, as it will make travelling easier for investors and residents alike. The second phase of the construction will also connect this route to the city of Lahore, Punjab, making road trips easier throughout the country.
All of these developments are expected to bring about a positive impact on Karachi’s property market for the following year. You can review our Annual Report for Lahore’s property market and Islamabad’s real estate sector as well if you want to know more about how properties have fared for the year throughout the country.
Conclusion
While the first few months after the budget were tough for the property market, the sector rebounded and was stable once again with rising confidence in the government’s policies. The amnesty scheme also played a vital role in normalising the situation, where people were encouraged to declare their real estate and other assets. The initiative kicked off a series of transactions that helped the sector report stability. While there were fluctuations, on average, property prices remained fairly stable and on the positive side, indicating investor confidence in the vertical and future growth of Karachi’s property market.
Commenting on the real estate progress of the city, Zameen.com CEO Zeeshan Ali Khan said, “Uncertainty and confusion are almost always coupled with new reforms and laws introduced by any government. The first couple of months after the fiscal budget was announced saw a similar outcome. People waited for the new laws to completely unfold before making any major decisions regarding property investment. With the dust surrounding the matter settled and with the introduction of the amnesty scheme, transactions in the real estate sector have again picked up as expected. Investors’ trust in the government has continued to increase, which was reflected by the launch of new projects such as Bahria Central Park Apartments, Palm Dreams Karachi, and Crescent Bay by Emaar, to name a few. “
Addressing the overall condition of the property sector in Pakistan, Khan said Karachi’s market is ideally suited for long term investment, especially since it is dominated by genuine buyers and investors. We are now in a buyer’s market, and the only people who would benefit from it are the ones that target long-term utilisation of property.
“While flipping might have been a good way for quick gains, holding and utilising a property are now the best ways to earn a handsome profit. The end of speculative trading has made way for a new generation of buyers and investors, who are utilising their investments by making a property livable, quite possibly for the next generation to benefit from their current investments,” added Khan. “The taxation mechanisms introduced over the years are now making sure that only genuine buyers get to play a positive role in moving the industry forward.”
“We expect to see the Naya Pakistan Housing Programme (NPHP) pick up pace, which will further recharge the property sector, along with uplifting other associated businesses such as cement, labour, tiles, marbles, and wood, to name a few. The construction of five million homes as part of the NPHP will add to the appeal of the real estate sector, where risks are relatively lower than other sectors,” he concluded.
Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Zameen.com, and not representative of actual real estate transactions conducted in Karachi. All prices quoted on the portal are subject to change without notice.
