Owning a home in Karachi not complex

• Mera Ghar is a dynamic plan; other projects in city likely woo investors

• Good time to buy apartments or villas in Bahria Town Karachi

Interview with Mr Nadeem Ahmed – CEO, Realancer

PAGE: Tell me something about yourself, please.

Nadeem Ahmed: I am a realtor. I hold degrees of an MS in Management Sciences, an MBA in Business Administration (Marketing), and an MA English Linguistics. My experience and association with people from various domains helps me to effectively manage people and their behavior. I am creative and possess excellent inter-personal management skills. I have also helped people in optimizing their investment in real estate business by providing them good consultancy. I am currently managing my own business with the name of REALANCER deals in real estate, marketing and construction in Bahria Town Karachi.

PAGE: Could you tell us about the prices of apartments and bungalows particularly in Bahria Town Karachi?

Nadeem Ahmed: Prices of apartments and bungalows in Karachi vary depending on their size and location. The prices of apartments range from Rs. 7,000 to Rs. 28,000 per square foot in Karachi. Some areas of Karachi like Gulshan-e-Iqbal, North Nazimabad, Gulistan-e-Jauhar and Scheme-33 have witnessed whopping raise in prices while there has been decline in prices of apartments in Clifton and DHA for a year. Prices of bungalows in Karachi vary from 10 million to 200 million. Prices of apartments and villas in Bahria Town Karachi are changing over time due to dynamic market. The apartment rates range from Rs. 8,000 to Rs. 13,000 per square foot. Currently, the apartment of 950 square feet ranges from Rs. 8.5 million to Rs. 10.5 million. Since there is much competition among builders and people have more options of getting the private builders project booked in Bahria Town Karachi, there is not much raise in prices of the apartment.

On the other hand, the prices of plot are on continual raise making the villas quite expensive. The prices of villa of 125 square yards start from Rs.13 million and go upto Rs.19.5 million.

Bahria Town Karachi gives a variety of options in sizes measuring 125, 250, 500, 1,000 and 2,000 square yard plots where people can build villas of their choice. This is a good time to buy apartments or villas in Bahria Town Karachi, because it is a new modern city under construction and presents various options to get the advantage of earlier mover there.

PAGE: What is your perspective about cost of construction nowadays vis-à-vis three years ago?

Nadeem Ahmed: The cost of construction has witnessed a mammoth raise in last three years; there has been 50 per cent rise in the construction cost that has affected adversely on the rates of apartments and bungalows. Such an unexpected rise in the construction and labor leads the builders to the situation where they will be unable to complete their projects what they offered booking on rates three years ago. The future cost of construction also seems obscure, so I see many builders leaving their projects unfinished.

PAGE: Could you tell us about bank financing for the purchase of apartments?

Nadeem Ahmed: We have very good option of bank financing in KDA or MDA leased property in Karachi. As the Prime Minister’s Housing Loan Scheme of Naya Pakistan Housing Scheme via banks provide loans to salaried and business class from Rs. 3 million to Rs. 10 million. Almost all banks offer loan facilities for leased property in Karachi, and give good options of buying their own apartment or house on subsidized rates.

Nevertheless, bank financing has given considerable raise to rates of small apartments and houses in Karachi. The option of bank financing in Bahria Town Karachi is not available, because of its lease issues. Only Escorts Bank offers this facility in Bahria Town Karachi.

PAGE: Could you give your views on the low cost housing?

Nadeem Ahmed: I appreciate the government’s initiative of Mera Ghar Housing Scheme in Pakistan; it is a great support to lower/middle-class income people who could never have thought of their own house. It is a dynamic scheme to facilitate low income earnings people in order to provide them their own house. These loans are with minimum interest rates with minimum documentation as a result those who are living in rental house can make their own house by paying the same rental amount as an installment to their loan. This housing scheme loans will benefit millions of Pakistani to have their own house.

PAGE: Kindly tell us about the future housing projects in Karachi:

Nadeem Ahmed: Many of builders aim to cater the needs of housing to people in Karachi and plan to bring new projects or expand the current ones in the future. Bahria Town Karachi, DHA Karachi, Pak China Town, ASF City, and Commander City are going to remain the center of attention for the investors in time yet to come. I see new projects coming on the M-9 Karachi.