Karachi’s Unprecedented Increase in Property Prices (Houses)
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 Arabia 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.
|Property hike in KHI|
|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||120 Yd²||12,000,000||23,500,000||96%||240 Yd²||20,000,000||37,500,000||88%|
|2||PECHS||240 Yd²||25,000,000||60,000,000||140%||400 Yd²||35,000,000||90,000,000||157%|
|3||Clifton||250 Yd²||47,500,000||57,500,000||21%||500 Yd²||110,000,000||125,000,000||14%|
|4||DHA||300 Yd²||50,000,000||70,000,000||40%||500 Yd²||75,000,000||120,000,000||60%|
|5||Nazimabad||133 Yd²||8,500,000||16,000,000||88%||216 Yd²||15,000,000||30,000,000||100%|
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 Kachi 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 Rs12,000,000 and in 2021 is valued at Rs23,500,000 signalling a 96% price hike.
- Similarly, the price for Type 2 houses (240 square yards) in 2015 was Rs20,000,000 and in 2021, the price is Rs37,500,000 showing an 88% price increase.
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 a Type 1 (240 square yards) house was Rs25,000,000 while in 2021 it reached Rs60,000,000 showing an increase of 140%.
- Moreover, the price of a Type 2 (400 square yards) house was Rs35,000,000 in 2015 and is Rs90,000,000 in 2021 indicating a 157% increase in prices.
Check out houses for sale in PECHS
Clifton is Karachi’s posh area with some of the city’s most expensive real estate. The area was developed initially under the 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 a Type 1 (250 square yards) house was Rs47,500,000 while in 2021 it is available for Rs57,500,000 highlighting an increase of 21%.
- Similarly, the price of a Type 2 (500 square yards) house was Rs110,000,000 in 2015 and is Rs125,000,000 in 2021 showing a 14% increase in prices.
Check out houses for sale in Clifton
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 Rs50,000,000 while in 2021 it is Rs70,000,000.
- For Type 2 (500 square yards) houses, the percentage increase in prices was 60%. In 2015, the price was Rs75,000,000 whereas for 2021 it is Rs120,000,000.
Check out houses for sale in DHA Karachi
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 Rs8,500,000 in 2015. The price of the same house has surged by 88% in 2021 and is presently valued at Rs16,000,000.
- Similarly, the price of Type 2 (216 square yards) was recorded at Rs15,000,000 in 2015. The price of the same house has increased by 100% in 2021 and is currently estimated to be Rs30,000,000.
Checkout house for sale in Nazimabad