Real estate is considered to be an imperishable asset which never slows down its increase in value. Our economy is driven by real estate as well. In major cities of Pakistan, there is a high demand for property investment due to the ever-increasing population and lavish housing projects ready to tempt new investors.
Pick one: LAHORE OR KARACHI?
For an average person in Pakistan, his preferences of living in Karachi or Lahore depends on his affordability and the cost which these cities are offering. Karachi and Lahore are the two most prominent cities in the country and equally magnetic when it comes to people who want to reside in here. It’s all about the preferences and affordability cycle of the investors.
The number of people living in Lahore is half of those living in Karachi. It is a crystal clear demonstration that Karachi is a cheaper choice for people. According to the Economist Intelligence Unit Survey of 2014, Karachi is ranked to be the second cheapest place in the world to live in. For 2011, 2012 and 2013, the city of lights stood in third place in the same category.
How is Lahore CHEAPER than Karachi?
Karachi is the largest metropolis in the country but still renting a one-bedroom apartment in this city will cost you about PKR 10,725. On the other hand; the same requirement in Lahore will cover a cost you about PKR 14, 650. The price difference here among both cities is about 36.7%. However, the selling price of property in Karachi is comparatively higher than in Lahore re. If you decide to buy a 1-bedroom apartment in Central Lahore, per foot square of this property will cost you about PKR 77, a 625. The same requirement in Karachi will cost you about PKR 96,485. We hope that the difference the we provided can support your decision power in picking the best!
It is not surprising to see that population rise in Karachi is not slowing down. Reason based is low property prices. This argument can be supported by the development of new and luxurious housing projects along M9 Motorway such as ASF City, DHA City, Bahria Town, and Karachi Hills etc. The aura of every city attracts the people towards itself but people are smarter than before which makes them prefer cities with low cost and high employment opportunities. These are some of the reasons which strengthen the design power when it comes to property buy and sells.
• Comparison in Rents
When we compare the rents in Karachi and Lahore, then;
KARACHI LAHORE DIFFERENCE
1 Bedroom Apartment (City Center) PKR 18,069 PKR 20, 897 -14%
1 Bedroom Apartment (Old Center) PKR 11,755 PKR 12, 218 -4%
3 Bedroom Apartment (City Center) PKR 38,695 PKR 49, 017 -21%
1 Bedroom Apartment (Old Center) PKR 27,378 PKR 27, 034 1%
• Comparison in Apartment Prices 50
KARACHI LAHORE DIFFERENCE
Price per sq. meter (City Center) PKR 131, 896 PKR 126, 541 4%
Price per sq. meter (Old Center) PKR 110, 447 PKR 65, 836 68%
AUDIENCE POLL: best place for secure investment is?
According to the people, the place they chose to live in is KARACHI! But is there any place which can give a tough competition, even to the city of lights? Yes, it’s GWADAR! There are a lot of reasons which supports this statement.
Karachi to Gwadar – Discovering Property through Road Trip!
The best way to discover property and land is a road trip. The one way trip from Gwadar to Karachi is about 650km, and it will take about 7 hours. In the meanwhile; you will discover that Gwadar is one of the best options for buying commercial property as compared to Karachi, Lahore or any other city. As China has taken control over turning Gwadar into the commercial hub, this place will undergo a qualitative change.
Differentiation by BUSINESS PERSPECTIVES
This place is entirely different from other parts of the country just because of its commercial importance from a business point of view. According to the Ministry of Planning, Development and Reform, the development of Gwadar is considered a top priority and the main focus is the quick industrialization in this area. It is expected that the industrial zone of Gwadar will bring a greater rate of return than any other commercial area of the whole country. These factors make Gwadar better than the real estate sector of any other country.
• CPEC and Gwadar
President Xi Jinping launched a 15-year mega-project in which he declared Gwadar to be a part of CPEC (China-Pakistan Economic Corridor). It is expected to be the biggest port of South Asia, making it one of the biggest commercial success in the world. The real potential of Gwadar is different from the rest of the country. As compared to other cities of Pakistan; it has a different approach in terms of investment.
• ‘Land Economy’ or ‘Blue Economy’?
Karachi and all its new projects flourish due to the land economy. There are some projects and housing schemes in Karachi which delivers well-developed residential and commercial options. On the other hand, Gwadar exceeds because of its “blue economy”. Gwadar has begun to be transformed into a transhipment hub.
A TOUGH CALL - Karachi or Gwadar or Lahore?
Real estate is extensive, and it has a lot of options coming up with many qualities in all the cities around the whole country. Some places are good for renting a home or a commercial area whereas; other places are profitable enough to be bought. Karachi, being the most attractive city in the country is the cheapest to live in. Lahore has other perks as compared to the city of lights. However; Gwadar still wins the race because of its recent developmental work which has astonished the world.
In the end; wherever you choose to live, be sure that the property is free from any kind of reputational damage or any other flaws which can impact your decisions negatively. In case of any queries regarding buying, selling, or renting property, contact REDBOX and all your real estate related problems will be solved.