Rates improving in some areas because of improved security situation
The real estate sector, which had been stagnant for the past year, has begun showing signs of revival with property prices rising between 10 and 15% in various area of the Sindh metropolis, property dealers said on Tuesday.
Attributing the rate rise on price hikes, they said that the situation was improving after the lifting of lockdowns and anti-coronavirus restrictions and rates of commericial and residential properties are going up.
Rates of apartments, plots, shops and bungalows have gone up in middle-income areas but there has been no change in property rates in posh areas of Karachi, they agreed.
According to them, there is uncertainty in areas near the newly-vitalized circular railway or buildings demolished under court orders and buyers are hesitant in buying properties in the immediate vicinity.
The joint secretary of the Defence and Clifton Association of Real Estate Agents, Muaz Liaquat, said that the law and order situation in the city has also improved which is reflected in property sector in various areas.
“Rates in some areas are rising because of the general price hike and investors are preferring to sell expensive properties and opting to buy larger flats, plots or bungalows in relatively cheaper areas … This is also pushing the rates up in areas where investors are buying land,” Liaquat said.
He said that there was no difference in rates of properties in the city’s posh areas such as Clifton, DHA, PECHS, SMCHS, Dhoraji and KDA Scheme 1. “Property rates in these areas are already far higher than other areas in the city and people seldom sell their properties in these areas, resulting in firming up of prices,” he said.
Property dealer Johar Iqbal pointed out that rates have especially gone up in new projects in the Malir district. “But there is no difference in rates in either DHA or the Bahria Town,” he said.
Another property dealer, Muhammad Kashif said that rates were also going up in Gulshan-e-Iqbal, Gulistan-e-Jauhar, Pehelwan Goth, Malir and residential schemes on the University Road.
Property dealers said that although there was no change in property prices in Saddar, MA Jinnah Road, Jamshed Road and Tariq Road, the tendency to covert commercial properties to warehouses was pushing the rates up.
Dealers also said that prices have also gone up in Kharadar, Lyari, Garden and other old city areas in the wake of improved security situation in these areas. Rates had improved in Orangi Town and Metroville areas, but the rise was affected by a chronic shortage of water.
Land prices have also increased in Nazimabad, Liaquatabad, Water Pump, Hyderi, North Karachi and other areas in Central district.
Buyers were not showing much interest in various schemes along Super Highway, Gul Muhammad Mamond. “There has been no change in prices of plots in Mehran Town and Shah Latif Town,” he said.