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DHA City Karachi – 2013 Year in Review


DHA City Karachi - 2013 Year in Review

DHA City Karachi (DCK) is another land mark project by DHA Karachi located on Super Highway at 20 minutes drive from Jinnah International Airport. DCK is a unique residential cum commercial project meticulously planned as a premium scheme of international stature. As the project transcends to the execution phase, the team engaged in this process is working day and night to make this project a livable entity by 2015-16. Total available land in DHA City Karachi is 11640 acres.

For DCK, the year 2013 was quite interesting and it gave excellent returns on investment for those who bought in early 2013 and also good for those who got the plots in DHA City Balloting in 2010. Market multiplied almost 3 to 4 times in a single year (Sector-Wise) but on minimum side it increased 2 times. Though these days market is quite slow but still there are buyers in the market, interested to invest in DCK.

DHA City Karachi - 2013 Year in ReviewThe major news for DCK in 2013 was the balloting of plot numbers and sectors. After the balloting, prices increased alot and within the span of 4 months market changed its price level amazingly (You can see in the charts below). Besides this the development work on the site is going at a very good pace.

Besides these the overall increasing prices of other properties in DHA Karachi, Clifton, and other posh societies also played a major role behind the increase in DCK prices. The current prices of other developed areas are almost out of reach for a common Pakistani and people who have savings; want to invest in real estate sector. They only have one choice of DCK. With same confidence level of DHA Karachi and very secure and crystal documentation procedure attract many investors to invest their hard earn money in DCK. Still the prices of DCK plots are within reach.

In Karachi, we have seen many bogus schemes became successful from booking point of view and people bought units and plots in huge quantity, though those schemes were not completed, nor they fulfilled their commitments. The other reason of this interest is a huge back lock of housing units and shortage of successful housing schemes. With presence of all these circumstances, DCK will be successful and the overall real estate trend is very much positive as well.

Pictures at the START of the year 2013

January 2013

The first month of 2013 was slow for DHA City Karachi. Market did not move much as compared to the month of December 2012. Prices settled down. ON money prices decreased a little from the level it started. The balloting date was expected in December 2012 but there is no confirmed news from the authority.

Top Stories:

February 2013

The market remained stable & slow for DHA City Karachi in the month of February 2013. Market did not move much as compared to last month. Prices settled down. ON money prices decreased a little from the level it started last month.

One more thing that the price range difference also shrink down and transaction has been made with very little difference. The gap between buying & selling witnessed very low. It is also the sign of stability in the market.

Top Stories:

March 2013

Just like the month of February 2013, the market remained stable for DHA City Karachi in the month of March 2013. Market moved just a bit on the positive side as compared to last month. Prices settled down. ON money prices increased a little from the level it started last month.

One good thing that was noticed during this month (just like the past couple of months) is that many transactions are made with short payment time. Short payment times are always good sign for any market which also give confidence to buyers and it will create positive impact on the market.

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April 2013

After the balloting of DHA City Karachi (DCK), the prices of DCK plots is a big question mark for everyone. It was quite interesting, when the news of balloting was roaming around and the prices jumped to almost 20 to 30% increase in ON money prices.

At those high prices, files has been traded and many transactions done. But one day before the balloting there was no buyer in the market. And every one was waiting for the balloting results.

Just after the news of balloting there was prompt jump in the prices of all categories and there was no confirm seller. Everyone wants to hold their plot for the taking full advantage of this price hike.

Top Stories:

May 2013

The month of May 2013 was assumed very important for DHA City Karachi (DCK) because it was the first month after balloting (held on 23rd April 2013). Market has to settle the prices because at the balloting news it makes new peak, and there are many questions raised for the price related issues.

It was mention in the balloting that development work is divided into three phases of different time frames and that was identified with different colors i.e Red, Yellow & Green. On this news, price was completely dependent on the colors in which the plot is located.

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June 2013

In the month of June 2013, DHA City Karachi (DCK) prices continued the previous pace and further moved on the upward side, specifically in the few categories and sizes, like commercial plots are in high demand and lack of sellers in the market. On the residential side, big plots like 1000 and 2000 square yards are on high demand.

The main reason of this spike in these categories and sizes is non-availability of plots as 1000 and 2000 square yards plots are less in quantity. Total residential plots of 1000 square yards are only 1357 and 2000 square yards are only 137. Same trend on commercial side, specifically Central Business Sub-District (CBD) is on high demand and there is no confirm seller in the market for CBD plots.

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July 2013

In the month of July 2013, DHA City Karachi (DCK) prices followed the bullish trend again and made new price hike in almost all sizes and categories. One thing noticed that prices of YELLOW and GREEN Sectors increased more on higher side, and in RED sector because of already high price it didn’t move more on higher side. As recommended earlier that the more suitable buying is in Yellow and Green Zone for investment purpose.

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August 2013

In the month of August 2013, DHA City Karachi (DCK) prices followed the bullish trend again and made new price hike in almost all sizes and categories. Prices increased from 25 to 50% in a single month, which looks so volatile. The reason behind this hype is that everyone would like to hold their plot or even want to buy more plots. No one is interested in selling and buyer has to buy plots at higher price.

On commercial side, Central Business Sub-District (CBD) prices are touching sky and figures are amazing at this stage. Profits are multiplied amazingly and nobody wants to sell their plot in CBD. The same trend happened with 1000/2000 yards residential plots.

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September 2013

The month of September 2013 was too volatile and it looks like that history repeats itself. Remember the month of December 2012 which was same as September 2013 where the volume and prices were different at the start of the month and made new highs and then took correction, touches the price level below the starting price of the month.

Price went up to almost 10 to 25% within two weeks of September and touches the highest level ever and made history. The minimum required amount to enter in the DCK market climbed up to 2.7-Million from less than 2-Million a month before. Whenever this kind of market movement occur market took correction. As I mention earlier in September forecast that market looks in overbought situation and will take correction.

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October 2013

October 2013 was too dull, as market is bearish and continued coming down. Not many transactions witnessed. As mention earlier that the market is in the wait and see position, and normally whenever market took this type of move, it will take some time to settle down.

According to ON Money prices, market is almost further decreased by 10 to 15% and become overall down by 40%. Very thin volumes of transaction has been witnessed.

During the same period, Bahria Town announced their projects in Karachi and got a very good response. Just after the closing date of registration of clients, people are ready to buy those slips with ON Money amount, even without any confirmation of location of its project i.e. Bahria Town Karachi.

Top Stories:

November 2013

November 2013 was too dull even the last month’s given price further dropped down in the start of November. Till 18th of November, the market was bearish and prices were almost at the bottom. 200 Square Yards (Civilian) minimum price touched at 13 to 14 Lacs ON money.

From 19th November onwards, prices started increasing and it looked like that somebody wants to increase these prices artificially and prices were increased very rapidly. Within 12 days till 30th November prices touched for the same plot around 23 to 24 Lacs ON money. That means a 10 Lacs increase within 12 days, which is not normal at all.

On 30th November, DHA City Karachi (DCK) administration also invited Real Estate Agents of Defence and Clifton for a site visit. People were so much positive about this event and it looked like that huge buying will take place in the market but actually it didn’t happened.

Top Stories:

December 2013

December 2013 was too dull, as market is bearish and continued coming down. Not many transactions witnessed. As mention earlier that the market is in the wait and see position, and normally whenever market took this type of move, it will take some time to settle down.

Prices are almost at the same November 2013 lowest level. Though after those lower level price, market took bullish move and came up but that was only for 10-15 days and in December 2013 market moved back to the previous level.

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Pictures at the END of the year 2013

ON Amount Charts

200 Yards (Civilian) – Residential

[DHA City Karachi] 200 Yards (Civilian) – Residential

200 Yards (Civilian) – Residential

300 Yards (Civilian) – Residential

[DHA City Karachi] 300 Yards (Civilian) – Residential

300 Yards (Civilian) – Residential

500 Yards (Civilian) – Residential

[DHA City Karachi] 500 Yards (Civilian) – Residential

500 Yards (Civilian) – Residential

1000 Yards (Civilian) – Residential

[DHA City Karachi] 1000 Yards (Civilian) – Residential

1000 Yards (Civilian) – Residential

2000 Yards (Civilian) – Residential

[DHA City Karachi] 2000 Yards (Civilian) – Residential

2000 Yards (Civilian) – Residential

200 Yards (Civilian) – Commercial

[DHA City Karachi] 200 Yards (Civilian) – Commercial

200 Yards (Civilian) – Commercial

All Civilian Residential Plots

[DHA City Karachi] All Civilian Residential Plots (ON Amount Chart) [DHA City Karachi] All Civilian Residential Plots (ON Amount Chart)

Average Transfer per Day (Aprox.)

[DHA City Karachi] Average Transfer per Day Chart

Average Transfer per Day (Aprox.)

Forecast:

As market followed the bullish trend since 2011 and according to my personal opinion it did not complete its move, and still there is gap in the market and over all real estate sector have a great potential because of real demand and huge liquidity in the market, people are ready to make investment and don’t want to miss any good investment opportunities. Plus overseas Pakistan’s are also have good percentage in all these investments. All these things looks that 2014 will be one more good year for Real Estate Sector for Pakistan and specially for Karachities!

This article is written by Mr. Muhammad Shafi Jakvani, CEO – Citi Associates.

Citi Associates – Real Estate Consultancy, Brokerage and Investment Services

Comments (4)

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  1. AR Khan says:

    Mr. Jakvani,
    Accurate and excellent analysis sir.
    Your time and efforts are much appreciated.

  2. Tariq Mahmood says:

    What is the current update prices for all plots at actual?
    What will be the trend for the 2014, as per your comments in last paragraph prices seems will raise, whereas BTK has been announced somewhere near to DHA City, then what will be the impact of the BTK on DHA Prices?
    We heared that DHA City extension is going to be announced, is it the correct, if yes, any schedule for the announcement?

    • For the current update prices you can check the January prices,

      Trend for 2014 will share in forecast 2014 very soon,
      and in the last paragraph I did’nt mention that particularly DCK prices will raise, It seems that 2014 will be another good year for Real Estate Sector, it does’nt mean that DCK prices will rais, things will be clear by end of first quarter.

      Will BTK Impact DHA City? It will.

      About the DHA city extension No official new from DHA, they might go for another piece of land 8000 Acres for industrial estate, but not sure,

      According to my personal opinion the remaining land in existing DCK will not be offered to Civilians.

      Lets see what exactly will happen.

      Hope you got the answers.

      Many Thanks.

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