Daily Times report by Abrar Hamza
Buying residence in thickly populated posh areas of Karachi has become a dream for the middle-class segment of the society as property prices of the said areas have escalated by 30 percent to 40 percent this year.
The reason of this price escalation is heavy investment from property investors and increasing remittances. The prices of property have increased in the last five months after remaining stable for some years.
These posh areas are relatively better in the law and order situation and did not get affected due to violence in the city; therefore, the investors after buying properties in such areas have been selling them on high prices in order to make hefty profits.
The reason people prefer buying residence in these areas is they are peaceful and have a safe environment for their families as compared to their current areas of residence, said Abbas, a local state agent.
Most of the buyers are now purchasing upper or lower portions of bungalows in the areas of Gulshan-e-Iqbal, Pakistan Employees Cooperative Housing Society (PECHS), FB Area etc.
In this regard, one of the posh areas of the metropolis is PECHS that is witnessing a substantial price increase trend in its properties. The prices of the properties remained flat for a few years, but during the current year it witnessed a heavy increase which can be ascertained with this example that a 400 square yards bungalow is now available at Rs 25 million to Rs 30 million, whose price was Rs 20 million the last year. Similarly, the current increased price of a 200 square yards unit is Rs 20 million while the same property was available at Rs 15 million last year.
Sources told Daily Times that investors are responsible for this price hike, particularly in PECHS. The city’s big investors have shifted their interests in the area and they are buying residential and commercial units on asked prices.
This has created demand and supply issue, resultantly there are more buyers now than sellers. Moreover, the investors-cum-developers are making huge profits by purchasing single residential units at high prices and re-constructing several portions in them just to sell them as individual units on high prices.
It is worth adding that Allama Iqbal Road, which is one of the prime locations of the PECHS area, has become a gold mine for investors because the previous government has granted it commercial status from residential. Due to this status, the prices of plots and bungalows on this street have increased massively. For example the plots that were available in the range of Rs 300 million have their prices surged manifold and now their price range is up to Rs 700 million after getting commercial status.
According to Saab Property, a leading property dealer in Defence Housing Authority (DHA), the prices of property in DHA Karachi currently are trading at highest levels ever, especially in Phase VIII. The market prices of 500 square yards residential plot in D cutting, Phase VIII, reached at around Rs 17 million, while defence streets Phase VIII plots are available at Rs 11.5 million.
In DHA the sales of bungalows have also shown a steep rise as 500 square yards brand new house is available at Rs 42.5 million to Rs 47.5 million. The price of a 1,000 square yards house is around Rs 80 million to Rs 100 million and 2,000 square yards bungalows are priced at Rs 180 million to Rs 200 million.