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 also risen, with a three-bedroom unit in Clifton’s Bath Island or Civil Lines now selling for between Rs75-80 million, up from Rs55-60 million in 2023-24.
In DHA, a 1,500 square foot apartment now costs approximately Rs40-45 million, compared to Rs30-32 million two years ago, representing a price increase from Rs20,000 to Rs28,000-30,000 per square foot. Prices for 500- and 1,000-square-yard bungalows have increased by 10-25% as well.
Abdul Wahab Parekh, owner of Parekh Estate, noted 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 prior. Larger 1,000-yard bungalows in DHA are priced between Rs130-450 million, compared to Rs110-350 million previously.
Clifton’s three-bedroom apartments, both older and newer constructions, are now priced between Rs25-50 million, an increase from the previous range of Rs20-40 million. Commercial plot prices have also seen substantial gains. Plots in PECHS and along Sharea Faisal (on the left side towards the airport) are now priced at Rs1.5-2 million per square yard, up from Rs1-1.2 million. On the right side of Sharea Faisal, prices range from Rs1 million to Rs1.5 million, compared to Rs700,000 to Rs1.2 million two years ago. Commercial plots on Shaheed-i-Millat Road are currently around Rs1.5 million per square yard, up from Rs800,000 to Rs1 million.
While residential and commercial property values are climbing in Karachi, industrial investment remains weak. Parekh Estate reported that there has been no significant new industrial investment in Karachi in the last 50 years, with existing landowners often dividing properties for non-industrial uses. Investors are increasingly looking to Nooriabad and Jhampir for industrial opportunities due to lower rates, while 60-70% of land along the Super Highway is considered “risky and controversial.”
In North Nazimabad, Mohammad Najeeb, a member of the Supreme Council of the North Nazimabad Association of Real Estate Agents (NNAREA), reported more modest price increases. A 240-yard ground-plus-one house has remained relatively stable at Rs55-65 million, while a 400-yard ground-plus-one bungalow has risen to Rs60-70 million from Rs45-50 million. Larger 600-yard and 1,000-yard bungalows are priced in the Rs70-100 million and Rs180-200 million ranges, respectively, up from Rs70-100m and Rs140-150m 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 priced at 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 rising property values in Karachi come as Pakistan’s stock market has also experienced significant growth. On February 13th, the KSE-100 Index closed at 179,603.73 points, nearly tripling its value from 64,661.78 points on January 1, 2024. Simultaneously, the price of one tola of gold reached Rs526,962 on Saturday, reversing from a peak of Rs572,862 on January 29, 2026, after starting 2024 at Rs219,700.
