Karachi Real Estate Forecast-2022

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The Karachi Real Estate industry has always been one of the top choices of investors across the country. As per World Bank, around 70% of Pakistan’s reserve has been invested in real estate. Although the real estate sector of Pakistan has been impacted majorly during the Covid-19 lockdown when the industry had come to a complete halt for straight six months, the investors were very optimistic about investing in the sector again as quickly as business activities resumed in the country.

Today, we are going to have a brief overview of how real estate is coping with post-Covid impact, How the market will perform in 2022, which areas will be the center of attraction for investors, and much more.

Background of Pakistan’s Real Estate Market in a Nutshell

In order to forecast the market situation and behavior of Real estate in Pakistan for the year 2022, we need to understand the background and dynamics of the market as a prerequisite. Despite the promising returns of investments and potential for growth, the industry is often viewed as dormant by the masses. When digging down deeper to identify the cause of it, the need for enormous capital for investment, and declining purchase power of a common man has been identified as the core reason behind intervals of inactivity.

The emergence of PropTech has enabled overseas Pakistanis to make themselves aware of the real estate developments and make investments in the country. However, the local Pakistani investors are suffering from political turmoil, weak economic policies, rising inflation, and weak purchasing power.

The series of bad financial strategies for the past 20 years has widely affected the country’s economic conditions resulting in the massive downfall of the Pakistani Rupee against the US dollar. With the local currency devaluation, overseas Pakistanis and the elite class remained the only potential investors and buyers of real in Pakistan. However, multiple low-cost schemes with easy installment plans have been introduced to facilitate a common man to participate in the real estate market, however, the ratio remained very insignificant. The real estate market will see similar behavior in 2022 as well with these two classes carrying on their dominance.

The year 2021 was no less than havoc for the real estate industry of Pakistan. The poor economic situation and uncertain political circumstances of the country continued to haunt the real estate market. All major cities suffered equally and failed to attract any significant development in real estate. The investors and other stakeholders were in the reconstruction and damage controlling phase throughout the year and counting the losses caused by the Covid hit 2020. However, investors are hopeful about the revival of the real estate sector in 2022.

The real estate sector is the country’s most potent sector. The fate of hundreds of other industries is dependent on this sector. This means the progress in the real estate sector ensures the boom in multiple other industries as well. Despite the flaws of regulatory frameworks, lack of low-cost housing schemes, outdated procedures, lack of transparency, the real estate sector is still the best investment option for local and foreign investors.

Various ultra-modern residential and commercial projects are lined up for launch in the following year. These developments have the potential to make the real estate sector once again a center of investment and progress throughout the country.

 

2022 And Karachi Real Estate

Karachi is a city of opportunities. From jobs to businesses, the city provides solid grounds for economic activities. Being home to around 30 million, the city still offers some of the most affordable housing schemes in the country. Therefore, Investing in Karachi’s real estate would not be a bad decision at all in the year 2022.

In the year 2022, there’s a fair chance that prices of houses in Karachi will drop in contrast to the economic events that happened in real estate last year. If prices fall as expected, the purchasing will be increased and this factor can contribute significantly to Pakistan’s real estate market as a whole.

The real estate forecast we made last year has proved fairly accurate and Alhamdulliah many of our readers have made handsome profits following our advice.

Area-Wise Recommendation For Investment in 2022

So before any further delay, let us jump to the area-wise recommendation for Investments in 2022.

1. DHA City

DHA city would be the real option to look out in 2022. Recently, FBR has actually devalued the prices of DHA City in their valuation and DHA management doesn’t seem to be satisfied with it. They are continuously coming up with rigorous marketing and development plans in order to justify their prices. So DHA city is the project you should consider in 2022 and you’ll not regret it.

Latest Prices Of DHA City 

2. Scheme 33

Scheme 33 would be our second recommendation for 2022. In scheme 33, you will get many options that are covered under the banner of Naya Pakistan Housing Scheme such as Saadi Garden, Pir Ahmed Zaman, Pir Gul Hassan, and Saadi Town.

As per World Bank, the demand for housing in Karachi is continuously increasing, and cooperative housing societies do not seem to be providing adequate supply to meet the demand.

Scheme 33 is the area mostly for end users. So it’s highly recommended for you to go for Saadi Garden, Pir Gul Hassan phase 2 near Scheme 33 side, and all other reliable and legal societies.

3. Garden City

Garden City saw a boom in 2021 as per our prediction. Our forecast for Garden City is still optimistic for the year 2022 as the project is seeing healthy activity from investors. One of the reasons Garden City is the center of attraction for investors is the price hike of Gulshan-e-Maymar. Investors are seeing Garden city as an alternative investment option especially when it’s priced almost half of Gulshan-e-Maymar.

4. Gulshan E Maymar

Maymar secured the fourth spot in our forecast for 2022 because we believe Maymar has already seen its peak in 2021. We are expecting around 10 to 15% ROI in Maymar.

In particular, we would recommend you to go for sector Q. However, overall Maymar is highly recommended for commercial property.

Latest Prices of Gulshan E Maymar

5. Taiser Town

Taiser Town performed superbly in 2021. It’s a low-cost housing scheme, planned for middle-class communities. It’s one of the best economic investment options in Karachi.  Purchasing a file in Taiser Town means you can easily make a 10% ROI.

In particular, we would recommend you to consider sector 65,72,73,74,76,79,80,81 and sector 30.

6. Bahria Town Karachi

Interestingly, Bahria Town Karachi performed well in the last quarter of 2021. Prices in Bahria Town Karachi are at their peak at the moment. So, we recommend you to look for Bahria Town only for long-term investment. But before investing, you should make sure precincts where possessions and utilities are already available.

Bahria Town is the talk of the town these days for its frequently rising maintenance charges. We have seen a series of protests by residents raising their voices against the charges. However, we believe Bahria Town is not the place to live for a middle-class community. Although the rates Bahria Town offers initially largely attracted middle-class communities but the cost of living in Bahria Town is no longer affordable for the middle-class.

Latest Prices of Bahria Town Karachi

Factors that may influence Pakistan’s Real Estate in 2022

We are expecting a number of factors that may affect Pakistan’s real estate market in 2022. There will be many unexpected factors as well. A few years back, nobody thought that a pandemic will occur and halt the industry for an indefinite period of time. Such unforeseen circumstances will also play a crucial role in shaping the fate of the industry in 2022. Some of the predictable factors are as follows:

• Another wave of COVID-19
• Government policies
• Worsening economic conditions
• Rate of interest
• Political turmoil
• Rising Inflation
• Investor’s trust

Another Wave Of COVID-19

The risk of the Covid-19 wave is a constant threat for businesses globally. It can occur anytime and have the potential to stay for an indefinite period of time.

Governmental Policies

Government is responsible to create such an environment through its investor-friendly policies that encourage investors. The real estate sector is also in a dire need of the government’s attention to boom again. The government should introduce reforms in the regulation of real estate in Pakistan. The establishment of a new regulatory authority (RERA) will also play a significant role in Pakistan’s real estate in 2022.

Worsening Economic Conditions

The worsening economic conditions of the country are another threat to the real estate industry. We are optimistic about economic progress in 2022 which may positively influence the real estate sector.

Pakistan is currently facing a severe housing crisis. So there’s a huge demand-supply gap which may attract many investors in this domain.

Rate of Interest

The government set the rate of interest through the State bank of Pakistan in order to overcome the economic crises of the country. The rate of interest is going to directly impact the real estate investments in Pakistan this year. The lower the interest rate, the more the investors market will attract.

However, we firmly discourage the interest in its all forms.

Political Turmoil

Political turmoil always has a major part in deciding the fate of Pakistan’s real estate industry. Political stability is very important to attract local and foreign investors. Political stability can influence the government policies for Real estate in 2022. The alignment of real estate progress and rhythm of government approach will be key in 2022.

Rising Inflation

Rising inflation is one of the key threats to the real estate industry in 2022. It directly hurt the purchasing power of the common man. Most of the population in Pakistan belongs to the middle-class income groups. Therefore, the rising inflation can directly impact the investors of the real estate market in 2022

Investors’ Trust

Last but not least, Investors’ trust in Pakistan’s real estate market will be the key even if every point mentioned above goes well. Steps taken by the government in 2021 such as the establishment of RERA and tax modifications shook the investor’s trust a bit. In 2022, the government’s focus to regain the investors’ trust will be the key factor for real estate.

Conclusion

So this is our brief research regarding the expected behavior of Pakistan’s real estate market in 2022. Overall, we can say the real estate market will see progress and upward trends in 2022. So don’t lose hope, keep investing money with proper homework. Do reach us for guidance regarding lucrative deals and reliable projects. Let us know in the comment section if you wish to add or inquire about anything or contact on WhatsApp and official Facebook page.

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