Karachi’s property market is experiencing a period of growth, but the gains are being overshadowed by the more substantial returns currently seen in Pakistan’s equities and gold markets, according to reports from real estate agents and market data released on February 15, 2026. While residential and commercial property values are increasing, particularly in the upscale neighborhoods of Clifton and Defence Housing Authority (DHA), investment in industrial properties remains sluggish, prompting a shift in investor focus.
The surge in gold prices has been linked to global economic uncertainty, including fluctuations tied to US trade policy and geopolitical tensions. Pakistan’s stock market has also seen significant gains over the past two years, driven by political and economic developments, lower interest rates and a reluctance among investors to hold US dollars. This has created a dynamic where alternative investments are proving more attractive than traditional real estate, at least for some.
On January 1, 2024, one tola of gold in Pakistan was valued at Rs219,700. As of Saturday, February 15, 2026, that price had risen to Rs526,962, though it had dipped slightly from a peak of Rs572,862 on January 29, 2026. Simultaneously, the KSE-100 Index closed at 179,603.73 points on February 13, 2026 – nearly tripling its value from 64,661.78 points on January 1, 2024. This dramatic increase in the value of both gold and stocks is drawing capital away from the property sector.
Rising Property Values in Prime Locations
Muhammad Shafi Jhakvani, vice president of the Defence and Clifton Association of Real Estate Agents (DEFCLAREA), reported that residential plots in DHA and Clifton have seen price increases of 25-50% over the last two years. Commercial plots in these areas have experienced even more substantial gains, rising by 25-75% during the same period. Apartment prices have also followed suit, increasing by 10-40%.
Specifically, a three-bedroom apartment in Clifton’s Bath Island or Civil Lines, which cost between Rs55-60 million in 2023-24, now commands prices of Rs75-80 million or higher. In DHA, a 1,500 square foot apartment has seen its price climb from approximately Rs30-32 million to around Rs40-45 million, reflecting an increase from Rs20,000 per square foot to Rs28,000-30,000 per square foot.
The price increases aren’t limited to apartments. Bungalows, particularly those measuring 500 and 1,000 square yards, have also seen gains of 10-25% in value. Rental returns in Karachi typically range from 0.25% per month to 3-4% per annum, with smaller units experiencing higher increases due to a shortage of available rental properties.
Shift in Industrial Investment
While residential and commercial properties in Karachi are appreciating, the industrial sector is facing challenges. Abdul Wahab Parekh, owner of Parekh Estate, noted that Karachi hasn’t seen significant new industrial investment in the last 50 years, with many property owners dividing land for non-industrial uses. This lack of investment is driving investors to seek opportunities elsewhere.
Investors are increasingly looking towards areas like Nooriabad and Jhampir, drawn by lower rates. However, Parekh cautioned that 60-70% of land along the Super Highway is considered “risky and controversial.” This suggests that while alternative locations are gaining traction, they also come with their own set of challenges.
New construction trends in DHA reflect the changing market. Parekh observed that new 500-yard and 1,000-yard bungalows are increasingly being built as ground-plus-one units, often incorporating amenities like swimming pools. A 500-yard ground-plus-one bungalow now costs between Rs100-250 million, compared to Rs80-160 million two years ago. A 1,000-yard ground-plus-one bungalow in DHA now ranges from Rs130-450 million, up from Rs110-350 million.
Regional Variations in Price Increases
Price increases aren’t uniform across Karachi. In Clifton, a three-bedroom apartment (old or new) now costs between Rs25-50 million, compared to Rs20-40 million previously. Commercial plot prices have also risen significantly. In PECHS and along Sharea Faisal (on the side towards the airport), commercial plots are now priced at Rs1.5-2 million per square yard, up from Rs1-1.2 million earlier. On the opposite side of Sharea Faisal, prices range from Rs1 million to Rs1.5 million, compared to Rs700,000 to Rs1.2 million.
Commercial plots on Shaheed-i-Millat Road are currently valued at around Rs1.5 million per square yard, an increase from Rs800,000 to Rs1 million two years ago. I.I. Chundrigar Road, however, remains a relatively slow market, with rates pegged at Rs400,000 per square foot.
North Nazimabad Trends
In North Nazimabad, Mohammad Najeeb, a member of the Supreme Council of the North Nazimabad Association of Real Estate Agents (NNAREA), reported a more stable market for houses. A 240-yard ground-plus-one house has remained relatively unchanged at Rs55-65 million over the past two years, while a 400-yard ground-plus-one bungalow has risen to Rs60-70 million from Rs45-50 million. Larger bungalows, 600 and 1,000 square yards, are priced in the Rs70-100 million and Rs180-200 million ranges, respectively, up from Rs140-150 million two years ago.
Apartment prices in North Nazimabad have also increased. An old two-bedroom flat without amenities now costs Rs5-7 million, while new 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 costing 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 Karachi property market continues to evolve, influenced by both local economic factors and global trends. The next key indicator to watch will be the performance of the stock market and gold prices in the coming months, as these will likely continue to shape investment decisions and property values across the city.
Published in Dawn, February 15th, 2026
Disclaimer: This article provides general information about real estate trends and should not be considered financial advice. Consult with a qualified financial advisor before making any investment decisions.
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