Karachi’s property market has posted steady gains over the past two years. However, gold and equities have delivered far stronger returns during the same period. Consequently, many investors are shifting focus toward bullion and stocks.
Global uncertainty has driven investors toward gold. Market volatility linked to tariff policies and geopolitical tensions strengthened bullion demand. As a result, gold prices surged sharply.
On January 1, 2024, one tola gold traded at Rs219,700. Recently, it stood at Rs526,962, after touching a record Rs572,862 on January 29, 2026. Therefore, gold nearly doubled within two years.
Similarly, the stock market recorded remarkable growth. On February 13, the KSE-100 Index closed at 179,603.73 points. In contrast, it stood at 64,661.78 points on January 1, 2024. Hence, equities almost tripled in value.
DHA and Clifton Lead Property Gains
Despite stronger performance in other assets, Karachi’s real estate market also experienced appreciation. Residential plots in DHA and Clifton increased by 25 to 50 percent across various blocks. Meanwhile, commercial plots surged by 25 to 75 percent.
Apartment prices also climbed. In Clifton’s Bath Island and Civil Lines, three-bedroom apartments previously priced at Rs55 to 60 million now range between Rs75 and 80 million. In some projects, rates are even higher.
In DHA, a 1,500 square feet apartment previously cost Rs20,000 per square foot. Now, prices range between Rs28,000 and Rs30,000 per square foot. Consequently, total values rose from Rs30–32 million to Rs40–45 million.
Bungalow prices also moved upward. Units of 500 and 1,000 square yards recorded increases of 10 to 25 percent. Moreover, many new bungalows now feature ground-plus-one designs with basement pools.
A 500-yard ground-plus-one bungalow currently costs Rs100 to 250 million, depending on location. Two years ago, similar units ranged between Rs80 and 160 million. Likewise, 1,000-yard units now cost Rs130 to 450 million, compared with Rs110 to 350 million earlier.
Rental yields remain modest. Typically, returns stand at 0.25 percent per month, or 3 to 4 percent annually. However, smaller units sometimes generate slightly higher returns due to limited supply.
Commercial Property Sees Sharp Increase
Commercial real estate in Clifton and DHA Phase 8 attracted strong investor activity. In Phase 8, prices surged significantly since 2024. Therefore, market participants expect new benchmarks in 2026.
In PECHS and on Sharea Faisal, commercial plot prices range between Rs1 million and Rs2 million per square yard, depending on location. On Shaheed-i-Millat Road, rates now average around Rs1.5 million per square yard.
However, I.I. Chundrigar Road remains comparatively slow. Rates there hover near Rs400,000 per square foot.
Industrial Investment Remains Weak
While residential and commercial segments expanded, industrial investment in Karachi stayed limited. No major new industrial projects have emerged in decades. Consequently, some owners are repurposing land for non-industrial uses.
Investors are increasingly moving toward Nooriabad and Jhampir. Lower land prices and development prospects attract buyers there. Meanwhile, large portions along the Super Highway remain considered risky.
North Nazimabad Market Trends
In North Nazimabad, property trends vary. A 240-yard ground-plus-one house remains priced at Rs55 to 65 million. However, 400-yard units increased to Rs60 to 70 million from Rs45 to 50 million.
A 1,000-yard ground-plus-one bungalow now costs Rs180 to 200 million. Previously, such units ranged between Rs140 and 150 million.
Flat prices also rose. Older two-bedroom flats without amenities cost Rs5 to 7 million. Newer units with facilities now range between Rs15 and 17.5 million.
Therefore, Karachi’s property sector shows consistent growth. Nevertheless, gold and equities continue to outperform in terms of rapid returns.
