KARACHI, Oct 9: The real estate market has come alive this year after remaining insipid for many years. Estate agents claim increase in property prices by at least 10-40 per cent in almost all the areas of this metropolitan.
A number of reasons were linked to boiling up property rates like rising remittances and investors’ activeness after remaining on the sidelines over various reasons. Besides, the rising construction cost in the last few years due to increase in cement, paints, sanitary, wood, ceramics, steel bars etc also pushed up property prices.
Genuine deals are also being struck coupled with investors’ interest after many years in the real estate business amid volatile political and economic situation.
Vice Chairman Clifton Zone Defense and Clifton Association of Real Estate Agents Abdul Wahab Parekh said one of the reasons of increase in property prices was shifting of well off people living in violence hit areas to Clifton and Defense.
Giving an example, he said that in Phase VIII D Cutting, a 500 yard plot now costs Rs15 to 17 million as compared Rs13 to Rs14 million. A 300 yards plot in same area sells between Rs8.5-9.0 million now as compared to Rs7 million.
In Phase VI, a deal usually strikes between sellers and buyers for a 500 yards double storey bungalow between Rs35-45 million as compared to Rs25-30 million.
A 1,000 yards brand new bungalow in Phase VI is priced between 60-70.5 million as compared to Rs40-50 million. A 500-yard plot in same phase costs between Rs25-26 million as compared to 22-22.5 million while a 1,000 yards plot price hovers between Rs42.5-50 million as compared to Rs35-37.5 million.
Parekh said an old three-bedroom non-luxury flat in areas like Bath Island, Civil Line and Frere Town is available at Rs8 million to Rs10 million as compared to Rs6-7 million. While a brand new three-bedroom flat (three to four years old) costs Rs14-20 million as compared to Rs10.1-10.2 million.
He said in luxury and other fully furnished A category, the total price for a three room flat hovers between Rs18-20 million while in B category the price of flat ranges between Rs12.5-15 million in Bath Island, Civil Line and Frere Town.
He added in these three areas, at least 25-30 new apartment projects (six to 10 storey) are under construction.
Owner of Pak Estate at Clifton Khan Zubair Shaheen was of the view that the price of flats, plots and bungalows rose by 30-40 per cent in posh areas while some plots in the last one year saw over 40 per cent rise in posh area.
He recalled that buying/selling activities in property market remained at low ebb from 2005 to 2011. He said around 30 deals relating to transfer of plot mainly are being witnessed at DHA Office daily as compared to 10-15 a year back. The price of three bed room flat in Creek Vista is Rs24-26.5 million as compared to Rs20-22.5 million.
He said home remittance also found way in real estate which rose to $13.186 billion in 2011-2012 as compared to $11.2 billion in 2010-2011, while July-August 2012 saw slight rise to $2.463 billion as compared to $2.406 billion in same period of 2011.
Owner of Johar Associates at Gulistan-e-Jauhar Abdul Wahab said the price of plots and bungalows in Gulistan-e-Jauhar rose by 10-15 per cent from January this year.
He said a single storey 240 yards bungalow in Block 15 is available at Rs10 million while a double storey is priced over Rs10.2mn. Usually genuine deals are going on between buyers/sellers followed by slight investors’ presence.
Owner of Nazimabad Estate at North Nazimabad Mohammad Najib said that prices of plots and bungalows went up by 20-25 per cent. A 240 single storey bungalow costs over 10 million while a double storey sells above 12.5 million. The price of a 400 yard single and double storey bungalow hovers between Rs12.5 to Rs17.5 million and Rs15-20 million respectively.