The stock equities market has averaged a 7% return over the last five years. Similarly, from 2016 to 2020, gold investors had an average return of almost 16%, but a five-year PIB is currently yielding over 9%. Despite the high returns, many Pakistani investors prefer to put their money into real estate. They do so because real estate has a much bigger profit margin. The Karachi real estate market is a good example. The cost of living in the country’s biggest cities has grown dramatically. Unprecedented growth in the city’s population as a result of unregulated rural-urban migration has exacerbated housing shortages. Because of the gravity of the situation, In this blog, we’ll look at the real estate market trends and analysis in Karachi.
Builders and businesspeople could take advantage of the barren terrain in the city’s environs as a result of urbanisation. The vicinity of the freeway attracted a lot of attention. The establishment of Bahria Town in Karachi is a big step forward in the market trend. The rise of Bahria Town coincided with the price increases of dozens of cooperative residential societies on both sides of the highway. Homes that cost as little as Rs. 4 million in 2016 were sold/purchased for around Rs. 20 million last year. This equates to an annual return of about 80% and a 400% return over the holding period. The main beneficiaries of a price hike are many new ventures.They could attract speedy investment due to their proximity to the motorway and surrounding communities such as Gulshan-e-Iqbal and Gulistan-e-Johar.
House prices and flats in Gulshan-e-Maymar town, which is located alongside the expressway, increased fivefold in the last decade. The house, which was originally listed for Rs. 2 million, is now on the market for more than a million rupees. The price hike helped CHS communities and towns in the vicinity, such as Garden City in Scheme 45. Furthermore, once sparsely populated residential regions are now heavily populated. This gridlock has paved the way for a slew of new residential developments outside of the expressway, as well as a secure, residential lifestyle.
The current housing market trend also provides a safe haven for politicians and entrepreneurs to hide their illicit earnings. These are the people who have profited the most from the government’s provisions under the pretence of the building package, which legitimises misconduct by scrutinising financial resources. As a result, Pakistan’s illicit money sector employs a large number of people. As a result of growing demand, property prices are rising. The horrible problem is that housing is becoming increasingly out of reach, particularly for those in the middle class. Living in a low-cost environment is a positive step forward.
As Pakistan’s commercial centre, Karachi serves as the country’s economic engine. Karachi’s GDP is expected to account for almost 25% of the country’s total. The port city acts as a gateway for Pakistan’s exports and imports, as well as a desirable location for investors looking for new opportunities. Furthermore, Karachi’s demographics show that the city has a significant human resource base, with the influx of people from other parts of Pakistan growing over time. Apart from serving as Pakistan’s economic core and growth engine, Karachi is a popular tourist destination for people seeking a lifestyle that blends tradition and modernity, distinguishing it from the rest of the country in a number of ways.
Karachi’s property market has always provided numerous opportunities to invest in the midst of the hustle and bustle of daily life; among the relief bundles provided to the building sector, Karachi’s real estate is displaying more uptrend in costs of dwellings in the countless residential societies of Karachi. As a result, housing values have climbed at a breakneck pace during the previous five years, and the trend is expected to continue in the coming months.