Karachi Property Prices Rise: DHA, Clifton See Biggest Gains in 2 Years
- Karachi’s property market has demonstrated resilience over the past two years, but gains have been overshadowed by the stronger performance of equities and gold, according to real estate...
- The surge in gold prices has been driven by global uncertainty, including fluctuations linked to US trade policy and geopolitical tensions.
- Muhammad Shafi Jhakvani, vice president of the Defence and Clifton Association of Real Estate Agents (DEFCLAREA), reported that residential plots in DHA and Clifton have seen price increases...
Karachi’s property market has demonstrated resilience over the past two years, but gains have been overshadowed by the stronger performance of equities and gold, according to real estate agents and market data. While residential and commercial property values are increasing, particularly in prime locations like Clifton and DHA, industrial investment remains sluggish, prompting a shift in investor focus towards alternative areas.
The surge in gold prices has been driven by global uncertainty, including fluctuations linked to US trade policy and geopolitical tensions. One tola of gold reached Rs572,862 on , before slightly receding to Rs526,962 by , a significant increase from the Rs219,700 recorded on . Pakistan’s stock market has also experienced substantial growth, with the KSE-100 Index closing at 179,603.73 points on – nearly tripling its value from 64,661.78 points on .
Muhammad Shafi Jhakvani, vice president of the Defence and Clifton Association of Real Estate Agents (DEFCLAREA), reported that residential plots in DHA and Clifton have seen price increases of 25-50% over the last two years. Commercial plots in these areas have experienced even more substantial gains, rising by 25-75%. Apartment prices have also followed suit, increasing by 10-40%.
Specifically, a three-bedroom apartment in Clifton’s Bath Island or Civil Lines, which cost between Rs55-60 million in 2023-24, now commands prices of Rs75-80 million or higher. In DHA, a 1,500 square foot apartment has seen its price climb from approximately Rs30-32 million to around Rs40-45 million, reflecting an increase from Rs20,000 per square foot to Rs28,000-30,000 per square foot. Bungalows, too, have appreciated, with prices rising by 10-25%.
Rental yields in Karachi typically range from 0.25% per month to 3-4% annually. However, Jhakvani noted that rental income is also increasing in line with property price hikes, particularly for smaller units where inventory is limited. Demand for rental properties, especially portions of larger homes, remains high due to limited availability.
Investor activity is particularly strong in Clifton’s commercial plots, with prices escalating rapidly. DHA Phase 8 has also attracted significant investment since 2024, and Jhakvani anticipates further price increases in 2026 for both residential and commercial properties in that area.
Abdul Wahab Parekh, owner of Parekh Estate, highlighted a trend towards the construction of ground-plus-one bungalows with basements and swimming pools. A 500-yard ground-plus-one bungalow now costs between Rs100-250 million, up from Rs80-160 million two years ago. A 1,000-yard equivalent now ranges from Rs130-450 million, compared to Rs110-350 million previously. Flat prices in DHA phases have increased from Rs15,000-20,000 per square foot to Rs20,000-35,000 per square foot.
In Clifton, a three-bedroom apartment now costs Rs25-50 million, compared to Rs20-40 million previously. Commercial plot prices have also risen significantly. In PECHS and on Sharea Faisal (towards the airport), commercial plots are now priced at Rs1.5-2 million per square yard, up from Rs1-1.2 million. On the opposite side of Sharea Faisal, prices have increased from Rs700,000 to Rs1.2 million to a range of Rs1 million to Rs1.5 million per square yard.
Plots on Shaheed-i-Millat Road are now selling for around Rs1.5 million per square yard, up from Rs800,000 to Rs1 million two years ago. I.I. Chundrigar Road, however, remains a slower market, with rates pegged at Rs400,000 per square foot.
A notable divergence is occurring in the industrial sector. Parekh reported a lack of significant new investment in Karachi’s industrial areas over the past 50 years, with many owners subdividing land for non-industrial uses. This has led investors to seek opportunities in Nooriabad and Jhampir, where land rates are lower. He also cautioned that 60-70% of land along the Super Highway is considered “risky and controversial.”
Mohammad Najeeb, a member of the Supreme Council of the North Nazimabad Association of Real Estate Agents (NNAREA), indicated that prices in North Nazimabad have been more stable. A 240-yard ground-plus-one house has remained relatively unchanged at Rs55-65 million, while a 400-yard equivalent has risen to Rs60-70 million from Rs45-50 million. Larger bungalows, 600 and 1,000 yards, have seen increases to Rs70-100 million and Rs180-200 million respectively, up from Rs70-100 million and Rs140-150 million two years ago.
Apartment prices in North Nazimabad have also increased. An older, two-bedroom flat without amenities now costs Rs5-7 million, while newer flats with facilities are priced at Rs15-17.5 million, up from just over Rs10 million. Three-bedroom flats have seen similar increases, with older units now costing Rs10-12.5 million (up from Rs8-9 million) and newer units with facilities priced at Rs17.5-35 million, compared to Rs15-20 million two years ago.
The Karachi property market, while experiencing growth, is navigating a complex landscape where the allure of equities and gold is proving strong. The shift away from industrial investment within the city raises concerns about long-term economic diversification and the need for infrastructure development in alternative industrial zones.