KARACHI: With Rs0.5-2 million purchasing houses and plots for investment purpose, not only in posh areas but also in other parts of the city, looks extremely difficult because of phenomenal increase in real estate prices.
Investors with this amount can only think of acquiring shops and apartment.
"Buying a house or plot out of this amount in Defence, Clifton, Gulshan-e-Iqbal, Gulistan-e-Jauhar, PECHS, KDA Scheme, North Nazimabad, F.B. Area, Nursery, etc., is virtually impossible," estate agents say adding small investors may at best think of purchasing shops, offices, etc.
Even the amount of Rs0.5-2 million is not enough to open an estate agency in DHA and Clifton on ownership basis with an aim to sell it at a premium in future. However, options are open to have an agency on rental basis.
In property market, long-term investments are made only in shops and apartments and short-term investments in plots.
Proprietor of Pak Estate at Clifton, Khan Zubair Shaheen thinks that with this amount buying a shop and a flat in Clifton is out of question, further there is hardly any empty plot in the area. However, a Rs500-600 per square ft office in Clifton can be bought at Rs2 million.
In DHA, a shop or even a two-bed room apartment can be purchased at Rs1.2-2 million but again locality and area matters most. A shop at main road of Zamzama is available at Rs20,000 per square ft.
Chief Executive of Parekh Estate at Clifton, Abdul Wahab Parekh thinks that it is not possible to make investment in posh areas with only Rs0.5-2 million."A 300 yards plot costs Rs3.5 million in DHA and even quality flat prices in Clifton also range between Rs3-5 million," he adds.
Even in new popular and modern projects in the DHA and Clifton, it is really hard to find a two-bed room flat with this amount. However, small investors can take risk at Cantt Side where old flats are available at Rs1.8-2 million but it is not feasible for investment purpose.
At Zamzama, Boat Basin, etc., rates for shops range between Rs20,000-100,000 per square ft, he said.
Around five to seven upcoming apartment projects in Bath Island, Civil Line and Frere Town, falling in Clifton area jurisdiction, are being booked at Rs7-10 million for three to four bedroom flat while ready flats of three to four bedroom for sale and purchase in Mehran Square, Saima Spring Field, Columbus Towers, Grand Yousuf, Mehran Arcade, Parsa, Diplomat Residency, President Residency, etc., are available at the rate of Rs6-8 million.
Near Bilawal House, two-bed room flat in some projects cost Rs2-2.5 million while three-bed room flat is priced at Rs2.5- 4 million. In posh area of Block 2 Clifton flat prices range between Rs5-6 million.
People can think of buying a two to three-bed room at Gulistan- e-Jauhar, Gulshan-e-Iqbal, North Nazimabad, F.B. Area, Al Hilal Society, etc., for Rs2 million depending on the construction and facilities.
Even in Lyari, a 200 yard plot in a good area costs Rs4-5 million while on goodwill basis it can be had at Rs1-1.5 million.