Karachi’s Unprecedented Increase in Property Prices (Houses) - Android

Karachi, Pakistan’s economic backbone, is a financial epicentre and an industrial base that generates 25% of the national Gross Domestic… Read More

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Karachi, Pakistan’s economic backbone, is a financial epicentre and an industrial base that generates 25% of the national Gross Domestic Product (GDP). It was recognised by the World Bank as the most business-friendly city in the world in 2007.

The city provides the stimulus for Pakistan’s economic growth by producing wide-ranging exports such as textiles, steel, cement, machinery etc. The port city also offers access to the warm waters of the Arabian sea and acts as an important hub for the fishing industry.

However, South Asia’s second-largest economy is facing a housing crisis with a shortfall of 10 million units. This is the result of the burgeoning population that has crossed the 20 million mark with the majority of its working-class being white-collar workers.

The city needs to construct houses around 700,000 every year to meet its growing population demands. Hence, it is not a surprise that there has been a price hike in an unprecedented move with house prices increasing by 50% to 100% over five years. It is expected to follow a similar pattern in future.

Graana.com has shortlisted five residential areas in Karachi to oversee the price changes in houses over a period of five years, from 2015 till 2021.

1. Gulshan-e-Iqbal and Gulistan-e-Jauhar

Gulshan-e-Iqbal and Gulistan-e-Jauhar are mainly populated by the working class of Karachi. The settlement has many Kaachi Abadis but has a secure supply of basic amenities such as water, power and gas that makes it a lucrative place to live.

A comparison of the property prices for the said time period shows that:

• The price for Type 1 houses (120 square yards) in 2015 was PKR 12,000,000 and in 2021 is valued at PKR 23,500,000 signalling a 96% price hike.
• Similarly, the price for Type 2 houses (240 square yards) in 2015 was PKR 20,000,000 and in 2021, the price is PKR 37,500,000 showing an 88% price increase.

2. Pakistan Employees Cooperative Housing Society (PECHS)

Pakistan Employees Cooperative Housing Society (PECHS) is an ideal society to live in Karachi. PECHS was formed in the 1960s to provide affordable housing to middle-class people. Excellent road network, public transport access and health facility and educational facility availability make it a terrific place to own a house.

The property trend is given below:

• In 2015, the price of Type 1 (240 square yards) houses was PKR 25,000,000 while in 2021 it reached PKR 60,000,000 showing an increase of 140%.
• Moreover, the price of Type 2 (400 square yards) houses was PKR 35,000,000 in 2015 and is PKR 90,000,000 in 2021 indicating a 157% increase in prices.

3. Clifton

Clifton is Karachi’s posh area with some of the city’s most expensive real estate. The area was developed initially under colonial rule but now harbours a network of top-of-the-class amenities, making it a profitable choice for homeowners.

An overview of the prices is shown below:

• In 2015, the price of Type 1 (250 square yards) house was PKR 47,500,000 while in 2021 it is available for PKR 57,500,000 highlighting an increase of 21%.
• Similarly, the price of Type 2 (500 square yards) houses was PKR110,000,000 in 2015 and is PKR 125,000,000 in 2021 showing a 14% increase in prices.

4. DHA

Defence Housing Society Karachi is one of the most developed societies in the city. Society has an independent source of water and electricity. The front of the society overlooks the serene ocean giving a peaceful ambience for its residents to enjoy.

The price trend between 2015 and 2021 is as follows:

• For Type 1 (300 square yards) houses, the percentage increase in prices was 40%. In 2015, the price was PKR 50,000,000 while in 2021 it was PKR 70,000,000.
• For Type 2 (500 square yards) houses, the percentage increase in prices was 60%. In 2015, the price was PKR 75,000,000 whereas for 2021 it is PKR 120,000,000.

5. Nazimabad

The centrally located society is easily one of the most populous societies in Karachi. It is fairly developed and has all the facilities required for comfortable living in the metropolis.

The price trend for Nizamabad is as follows:

• The price of a house in Nizamabad of Type-1 (133 square yards) was recorded at PKR 8,500,000 in 2015. The price of the same house has surged by 88% in 2021 and is presently valued at PKR 16,000,000.
• Similarly, the price of Type 2 (216 square yards) was recorded at PKR 15,000,000 in 2015. The price of the same house has increased by 100% in 2021 and is currently estimated to be PKR 30,000,000.

Awais Bhatti is a content specialist at Graana.com.

The post Karachi’s Unprecedented Increase in Property Prices (Houses) appeared first on .