Karachi being the commercial hub of Pakistan is the major driver of Pakistan’s economy. It is estimated that the contribution of Karachi to the GDP is almost 25% of the total. The port city is the gateway to the exports and imports of Pakistan and a suitable destination for investors looking to tap the new economic opportunities. Moreover, the demography of the city is evidence that Karachi has a huge number of human resources and the influx of people from the other parts of Pakistan is expediting as life unfolds.
Apart from being an economic hub and engine of growth, Karachi is the favourite destination of tourists looking to experience a lifestyle blended with tradition and modernity -unique from the other cities of Pakistan in myriad ways. The unique architecture from the era of Mughals and British is a picturesque sight for the sightseers moreover, its rippling sea waves enchant the people and the seashores become a locus point of the whole city.
Real Estate in Karachi
In the hustle-bustle of daily routine, Karachi’s real estate market from the investor’s point of view has always held numerous opportunities for investment; amidst the relief packages given to the construction sector the real estate of Karachi is showing an upward trajectory in prices of residences in the various housing societies of Karachi. The surge in property prices has shown an unprecedented trend over the last five years and it is being assumed that the trend is likely to follow the same trajectory in the upcoming days.
Graana.com has identified the five residential areas of Karachi for plotting the price trend over the period of the last five years. The base year is set in 2015 with a percentage change to be determined till 2021. Moreover, the variables for determining the prices include the accommodation of apartments.
|Type-1||Price in 2015||Price in 2021||% Change||Type-2||Price in 2015||Price in 2021||% Change|
|1. Gulshan-e-Iqbal/ Gulistan-e-Jauhar||2 Bed DD||6,000,000||10,000,000||67%||3 Bed DD||7,500,000||14,000,000||87%|
|2. PECHS||3 Bed DD||12,500,000||30,000,000||140%||4 Bed DD||17,500,000||42,500,000||143%|
|3. Clifton||2 Bed DD||20,000,000||36,000,000||80%||3 Bed DD||30,000,000||47,500,000||58%|
|4. DHA||2 Bed DD||5,500,000||8,000,000||45%||3 Bed DD||7,500,000||9,000,000||20%|
|5. Nazimabad||2 Bed DD||2,750,000||5,250,000||91%||3 Bed DD||5,500,000||8,500,000||55%|
Gulshan-e-Iqbal and Gulistan-e-Jauhar
Gulshan-e-Iqbal and Gulistan-e-Jauhar are inhabited by most of the middle-class families residing in Karachi. The society is equipped with basic infrastructure facilities like availability of water, electricity, and gas adds to the value of these societies.
The trend of prices over the last period for both societies has remained the same and is as follows:
- In 2015, the price of apartments of Type-1 (with two bedrooms and Drawing & Dining) in these housing societies stood at Rs6mn, whereas in 2021the price of the same type has raised to Rs 100 million thus registering a percentage increase of 67%.
- Similarly, the prices of apartments of Type-2 (with three bedrooms and Drawing & Dining) in 2015 were recorded at Rs7.5mn; in 2021 the prices of the same type has ballooned by 87% and rose to Rs. 140 million.
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The second identified housing society is the Pakistan Employees Cooperative Housing Society (PECHS). Besides the availability of basic facilities, PECHS provides all the amenities which a common man looks for while finding a residence which is a gated community, grid-station, and 24/7 security. Malir town residency is also one of the famous society in Karachi.
The trend of property prices of houses for sale in PECHS is explained as follows:
- In 2015, the price of a Type-1 apartment with (3 bedrooms and Drawing & Dining) was recorded at Rs. 12.5 million whereas, after the price hike the value of an apartment with the same specifications in 2021 is recorded at Rs. 30 million. Thus, the prices changed by 140% over a period of five years.
- Furthermore, the price of a Type-2 apartment with (4 bedrooms, and Drawing & Dining) in 2015 was recorded at Rs. 17.5million however, after the increase in prices over the period of five years, the value of the same apartment in 2021 has reached Rs. 42.5 million. The percentage increase is recorded at 143%.
Find out more apartments in PECHS Karachi.
Renowned for its scenic views, the prices of apartments in Clifton have also increased over the time period of five years. The price trend of Clifton is shown as
- The price of an apartment in Clifton of Type-1 (2 bedrooms, and Drawing & Dining) was recorded at Rs20mn, within the span of five years, the price of the same apartment has surged by 80% in 2021 and the new price is recorded at Rs. 36 million.
- Following the upward trend, the price of a Type-2 apartment (3 bedrooms and Drawing & Dining) in 2015 was Rs. 30 million however, the price in the year 2021 is noted at Rs47.5mn. The percentage increase is calculated at 58%.
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Defence Housing Authority (DHA) has also emerged as a major competitor in the real estate market of Karachi. Developed on the new and modern techniques, the prices of apartments in Karachi of DHA is moving upwards since 2015.
The course of prices is explained below.
- In 2015, the price of an apartment of Type-1 (2 bedrooms, and a drawing & dining) was recorded at Rs5.5mn whereas, in 2021 the prices have surged by 45% and the price of the same apartment is recorded at Rs. 8 million.
- The price of an apartment of Type-2 (3bedrooms and a Drawing & Dining) in 2015 was registered at Rs7.5mn. In 2021, the prices of the same apartments have surged by 20% and recorded at Rs. 9 million.
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The final vicinity has been identified for the purpose of noting an increase in the prices of apartments in Nazimabad. The division of Nazimabad is done such that five blocks are allocated for residential purposes meanwhile, the remaining two blocks are developed for commercial activities.
The trend of prices in Nazimabad over the period of last five years is explained as
- In 2015, the price of an apartment of Type-1 (2 bedrooms and a drawing & dining) was noted at Rs2.75mn however, in 2021, the prices have observed an increase of 91% and observed at Rs. 5.25 million.
- Similarly, the price of an apartment of Type-2 category in 2015 was recorded at Rs5.5mn, after an increase of 55% over the period of five years, the prices in 2021 is noted down at Rs. 8.5 million.
Find out more apartments in Nazimabad Karachi.