KARACHI: The prices of commercial plots in the city have risen sharply owing to limited availability of space on prime locations situated along main roads.
The demand for locations along main thoroughfares came from investors who want to build multi-story, high rise buildings using ground floor for commercial setups including banks, restaurants, showrooms, shops, etc.
Though the opinions of estate agents varied on rates, however they converged on one point: prices have shot up considerably over the last one and a half years.
In North Nazimabad, the commercial plot price hovers between Rs80,000 to a maximum Rs300,000 per square yards. A year ago, these were Rs50,000-55,000 and Rs225,000-250,000 for the same area.
Some of the known projects facing main roads are not less than at Rs250,000-300,000 per square yard in North Nazimabad.
“This is because of limited space while the demand is extremely higher,” owner of Nazimabad Estate, Mohammad Najeeb said.
Another broker said commercial plot rates in Nazimabad and F.B. Area hovered between Rs200,000-250,000 per square yard. A year ago these were Rs100,000-150,000 per square yard, he added.
Owner of Parekh Estate in Clifton, Abdul Wahab Parekh said that on main Clifton, Boat Basin and sea facing locations, the commercial worth of property has swelled to Rs350,000-500,000 per square yards from Rs300,000-350,000 in the last one year.
However, giving price overview in DHA over the last one and a half years, he said the price of commercial plots have increased by over 50 per cent in various phases.
The rates in Phase V, VI and VII, which are developed phases, have peaked to Rs350,000-600,000 per square yard in the last one and a half years as compared to Rs400,000-450,000 some two years ago.
In Phase VIII, where permission for development is not allowed, commercial rates hover between Rs350,000-400,000 as compared to Rs175,000-200,000 one and a half years back.
Since DHA is quite safe and secure than other areas, rich people and businessmen in various city areas have actually played a big role in developing DHA commercial areas where the rates vary from area to area depending on the locations, he explained.
Some of the businessmen living in old city areas have moved towards the posh areas, besides setting up their businesses in commercial areas, he said.
Giving an overview of prices in other locations, Parekh said a year ago, plots along Shahra-e-Faisal were worth Rs250,000 per square yards as compared to the current rate of Rs350,000-400,000.
In another category at same Shahra-e-Faisal, the commercial area having height of 170 feet roof height is worth Rs350,000-400,000 per square ft as compared to Rs250,000-300,000 a year ago.
The 60 ft height roof commercial plot carries a price of Rs250,000 as compared to Rs150,000-200,000 per square yards a year ago.
At Shaheed-e-Millat Road, the rate hovers between Rs350,000-400,000 per square yards which was Rs200,000-250,000 a year back.
At I.I. Chundrigar Road, the rate is Rs200,000-250,000 per square yards which was ranged between Rs150,000-200,000 a year back.
Published in Dawn, March 6th, 2016