According to news, Karachi real estate after remaining sluggish for many years has become active this year. In almost all areas in the city, the price of property has increased by at least 10% to 40%. Numerous reasons are being cited for this increase such as enhanced investors’ activeness and rising remittances.
Moreover, increase in construction cost due to increase in prices of paints, cement, steel bars, wood, sanitary equipments and ceramics has also pushed property prices up in this metropolitan city. Despite the volatile economic and political situation, after many years genuine deals are being struck in the city.
Abdul Wahab Parekh, Vice Chairman of Clifton Zone Defense and Clifton Association of Real Estate Agents, says shifting of well off people from violence hit areas to more peaceful areas like Defense and Clifton is also one of the reasons behind the increase in property prices. As an example he says, a 500 yard plot and 300 yard plot in Phase VIII now costs Rs 15 to 17 million and Rs 8.5 to 9 million respectively. Previously these plots cost between Rs 13 to 14 million and Rs 7 million respectively.
A 500 yard double storey bungalow in Phase VI now costs between Rs 35-45 million in comparison to Rs 25-30 million. Parekh also said that an old and non-luxury three bedroom flat in Frere, Civil Line and Bath Island now costs between Rs 8-10 million in comparison to Rs 6-7 million. On the other hand fully furnished and luxury A category flat now costs between Rs 18-20 million whereas B category flats cost between Rs 12.5-15 million.
As per Khan Zubair Shaheen, owner of Pak Estate at Clifton, prices of bungalows, flats and plots have increased by 30-40 percent in posh areas whereas in case of some plots over 40% rise has also been recorded in last one year. He also added that from 2005 to 2011, activities in property market remained low but compared to 10-15 years back, now 30 deals related to plot transfers are being seen daily at their DHA office.
Abdul Wahab, the owner of Johar Associates at Gulistan-e-Johar, highlighted that prices have increased by 10-15% for plots and bungalows in Gulistan-e-Johar this year.
