For decades, Karachi has been the hub of more than just the economy, culture, trade and education. Unfortunately, though the charm posed by the city for the dwellers a few years ago is dwindling ever so abruptly.
Karachi plays home to almost all ethnic groups of Pakistan which move about in the tightly knit communities. Due to a rapid increase in the population throughout the 1970s and the 80s which continued well into the 90s, Karachi real estate boomed. With the multitudes pouring in from all corners of the country, investors and realtors began erecting residential towers which, in turn, gave birth to a lifestyle which was unique to Karachi. This lifestyle and the economic prosperity of the city helped its real estate value sky rocket. Despite the high prices of the flats, Karachi retained its attraction.
These flats or apartments served two basic purposes. First, they offered affordable accommodation for the multitude of people who were flocking to nest in the city. Second benefit of this boom was a direct positive effect on Pakistan real estate in general and Karachi real estate in particular. The prosperity that came along with this boom was unprecedented for any of the other cities of Pakistan.
This high rush of property in Karachi did not last for long. The recent series of unfortunate events has adversely affected all sectors of the city, including its real estate. Because of deteriorating law and order conditions in the city, the realtors too are afraid of investing in the sector where selling a piece of land is becoming harder with every passing day. This has proven to be a drastic blow for Pakistan real estate and for Karachi in particularly since the recent turn of event has reinforced the long ever arising security concerns of the local residents.
Even though the never ending inflation and recession seem to have badly bruised the purchasing power of people, the situation in other cities however improved. The real estate prices and rent in Islamabad & Lahore, among other cities, have somewhat stabilized.