Real Estate Prices Declining in Karachi: Report
By
March 29, 2024
Recent research by the House Building Finance Corporation (HBFC) reveals some interesting trends in Karachi’s real estate market. Over the past five years, adjusted for inflation, real estate prices in Karachi have been dropping compared to other cities in the region.
Karachi’s real estate scene stands out when compared to cities like Mumbai and others in Asia. In the last year alone, Karachi saw a significant 15 percent decrease in property prices, whereas Mumbai experienced a smaller 3 percent drop.
This decline isn’t new; it’s been happening over a decade, with Karachi’s property prices falling by 4 percent, unlike Mumbai, which saw an 8 percent growth. Interestingly, other Asian cities like Tokyo and Taipei have seen remarkable long-term growth, highlighting different market dynamics.
While Southeast Asian cities like Bangkok and Hanoi show impressive growth rates, Karachi lags behind. The reasons are multifaceted, including inflationary pressures, lack of infrastructure, and poor civic services.
In terms of property affordability, Karachi stands out with its low buying price per square meter at $131, unlike cities like Hong Kong and Singapore, where prices are significantly higher.
Looking ahead, Pakistan’s real estate market needs strategic reforms to regain stability and investor trust. It’s a crucial aspect of Pakistan’s economic future and requires attention from developers, investors, policymakers, and consumers alike.
