Karachi property prices have risen significantly over the past two years, though gains have been outpaced by returns in Pakistan’s equities and gold markets, according to real estate agents. The increases are most pronounced in the city’s Defence Housing Authority (DHA) and Clifton areas.
Muhammad Shafi Jhakvani, vice president of the Defence and Clifton Association of Real Estate Agents (DEFCLAREA), reported that residential plot prices in DHA and Clifton have increased by 25-50% over the last two years. Commercial plots in those areas have seen even larger increases, surging by 25-75% during the same period. Apartment prices have risen by 10-40%.
Specifically, a three-bedroom apartment in Clifton’s Bath Island or Civil Lines area, which sold for between Rs 55-60 million in 2023-24, now commands prices of Rs 75-80 million or higher. In DHA, a 1,500 square foot apartment that cost around Rs 30-32 million two years ago is now selling for approximately Rs 40-45 million. Prices per square foot have risen from Rs 20,000 to Rs 28,000-30,000.
The price of larger properties has likewise increased. Bungalows measuring 500 and 1,000 square yards have seen price increases of 10-25%. Rental yields in Karachi typically range from 0.25% monthly to 3-4% annually, but are increasing with property values, particularly in smaller units where rental inventory is limited, Jhakvani noted. Demand for portions of larger homes is also high due to limited availability.
Investors have shown particular interest in commercial plots in Clifton, driving up prices. DHA Phase 8 has also seen significant investor activity since 2024, with prices expected to continue rising throughout 2026.
Abdul Wahab Parekh, owner of Parekh Estate, observed a trend towards the construction of ground-plus-one bungalows, often including basements with swimming pools. A 500-yard ground-plus-one bungalow now costs between Rs 100-250 million, up from Rs 80-160 million two years ago. A 1,000-yard bungalow in DHA now ranges from Rs 130-450 million, compared to Rs 110-350 million previously. Flat prices in DHA phases are now around Rs 20,000-35,000 per square foot, an increase from Rs 15,000-20,000 two years ago.
In Clifton, a three-bedroom apartment now costs between Rs 25-50 million, compared to Rs 20-40 million previously. Commercial plot prices have also risen, with plots in PECHS and on Sharea Faisal (left side towards the airport) now priced at Rs 1.5-2 million per square yard, up from Rs 1-1.2 million. On the right side of Sharea Faisal, prices range from Rs 1 million to Rs 1.5 million, compared to Rs 700,000 to Rs 1.2 million. Plots on Shaheed-i-Millat Road are now around Rs 1.5 million per square yard, up from Rs 800,000 to Rs 1 million two years ago. I.I. Chundrigar Road remains a slower market, with rates at Rs 400,000 per square foot.
While residential and commercial property values are increasing, the industrial sector in Karachi has seen little new investment in the last 50 years, according to Parekh. Many owners are dividing industrial premises and land for non-industrial uses. Investors are increasingly looking to Nooriabad and Jhampir due to lower rates, though he 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), reported more modest price increases in North Nazimabad. A 240-yard ground-plus-one house has remained relatively stable at Rs 55-65 million, while a 400-yard bungalow has risen to Rs 60-70 million from Rs 45-50 million. A 600-yard bungalow remains in the Rs 70-100 million range, and a 1,000-yard bungalow costs Rs 180-200 million, up from Rs 140-150 million two years ago.
In North Nazimabad, an classic two-bedroom flat without amenities costs Rs 5-7 million. New flats with facilities are priced at Rs 15-17.5 million, up from just over Rs 10 million. Old three-bedroom flats are priced at Rs 10-12.5 million, up from Rs 8-9 million, while new three-bedroom units with facilities are priced at Rs 17.5-35 million, compared with Rs 15-20 million two years ago.
