The condition of Karachi real estate seems to be worsening with every passing day. In this regard, even some of the most trusted real estate developers have not been able to do much to help bring the price of properties back to their original stature. Although, the whole of Pakistan real estate in general seems to be experiencing either stagnancy or a fall in prices but nowhere else have prices fallen as much as they have in Karachi.
The inception of Karachi Defence Housing Authority, for many, had brought a wave of good change for the local realty market. However, according to real estate dealers, working on the peripheries of the unfinished housing society, things do not seem as good as they once thought they would be. The year 2011 has been an uneventful year not just for Karachi but the whole of Pakistan real estate in general.
Karachi rentals have been a major sufferer. As a metropolitan, Karachi serves as home to thousands and thousands of dwellers from all corners of Pakistan. Not being in the position to buy a house of their own, renting property was always a preference of many who moved to the city. Because of all of these reasons, the rental market of Karachi has always been robust but the unrest and violence, which has become a daily routine for the locals, has had adverse affects on all sectors of society.
One of the biggest sufferers of such uncertainly has been the commercial sector of real estate. Rental prices for commercial areas in DHA have fallen considerably. According to rough estimates, some commercial properties have undergone a drop of about 30%. For the residential areas in DHA, rents and prices have been stable. Not surprisingly, DHA is perhaps one of the very few places in Karachi, which are free of any kind of ethnic violence. It is this security that catapults buyers into investing in DHA properties.
In a nutshell, for the Karachi realty market, it indeed is a very serious matter that even projects like DHA are strugglers. Although the performance of Pakistan real estate generally is not that well, but Karachi remains a bigger sufferer because of the poor law and order situation Property in Karachi will begin doing better when the ethnic violence would be curbed.
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