KARACHI, Sept 11: The September 11 catastrophe in New York last year has played havoc with property prices particularly in almost all the phases of Defence Housing Authority (DHA), resulting in shooting up of prices by 20-30 per cent following investors’ renewed interest coupled with arrival of home remittances.
A total of $2.8 billion has arrived in shape of home remittances from September 2001-02 as compared to $976 million from September 2000-01, showing a rise of over 150 per cent.
In the last one year, the genuine buyers have been at disadvantage as they have to manage more money to buy their desired residence. However, sellers have finally got some advantage to get the price above the actual rate prevailing before of September 11, 2001.
“The Defence market has now more sellers than buyers since the last one year,” owner of Pak Estate, Zubair Shaheen says.
An old bungalow in phase IV, 300 yards, which was priced between Rs3.5-4 million, is now available at Rs4-5 million, while a new bungalow in the same phase can now be purchased at Rs6-7 million from pre-September 11, 2001 price of Rs5.5-6 million, he said.
The price of an old bungalow (500 yards) in phase V now ranges between Rs6-6.5 million as compared to Rs5-5.5 million, while the new bungalow in the same phase now costs Rs8.5-9.5 million as against Rs7-8.5 million.
An old bungalow of 1,000 yards in Phase V, which was ranging between Rs6.5-7.5 million a year back, is now ranging between Rs7-9 million. The price of new bungalow in the same phase hovers between Rs12-17 million as compared to Rs10-11 million.
A two-bedroom apartment (well maintained) is now tagged at Rs1.6-2 million as compared to Rs1.2-1.5 million. The three-bedroom flat now costs Rs2.3-3 million as against Rs1.8-2.5 million. A four-bedroom flat carries price of Rs3-3.8 million in comparison to Rs1.7-2.5 million.
In open plots — a 300 yards plot in Phase 14, which was ranging between Rs2.5-2.8 million, now costs Rs2.5-3.4 million. A 500 plot in Phase V is now available at Rs3.5-4.6 million as compared to Rs3-4 million.
“Investors and speculators have been very much active in the last one year specially in Defence area that is why prices are very high,” Zubair says adding that people, who have sent their money in Pakistan, are also now on a hunt to make their lifetime capital in safest investment avenues.
He says that it has been first time after a gap of five years that property market in city’s main posh area has shown some activities.
However, prices of bungalows and apartments in Clifton areas have also peaked up by 10-15 per cent as a result of a follow up of increase in prices in Defence.
A market review of city’s other areas show that investors are very much active in Gulistan-e-Jauhar where prices have gone up by at least Rs300,000-500,000. A new 240 yards house (well decorated) in Block 15 now costs Rs3.8-4.2 million as compared to Rs3.3-3.5 million a year back.
Similar price hike trend has been witnessed in Gulshan-e-Iqbal area where brokers say that prices have been on the higher side by Rs200,000-300,000 per house in the last one year.
In other parts of the city like F.B. Area, North Nazimabad, Nazimabad, Liaquatabad, Korangi, Landhi, North Karachi and New Karachi — prices have not shown any increase due to investors’ lack of interest.
