‘Black Saturday’ riots haunt real estate business in Karachi

KARACHI: The booming business of real estate in the metropolis suffered a set-back due to the May 12 carnage following rumors of ethnic riots as sharp decline in value of real estate in the city has registered in aftermath of the Saturday’s bloodbath.

A survey conducted by Online revealed that a sharp decline in value of plots, flats and shops has registered in many area of the city ranging from 20 per cent to 50 per cents.

In some areas the property dealers have stopped the process of selling of lands, plots, flats and shops, however they were seen pursuing the people to sell their flats, plots and shops amid to exploit the prevailing situation.

The works of thousands of estate agents involved in the business have virtually come to standstill in the some parts of the city.

Sources attached to the business told Online that some investors were intending to shift their capital from the sector to any other.

The survey revealed that after the May 12 bloodbath value of real estate has declined about 20 percent in Defence, Clifton, PECHS, North Nazimabad, North Karachi, while in Gulshan-e-Iqbal, Gulistan-e-Jauhar, Nazimabad, New Karachi, Surjani, Al-Falah, Shah Faisal Colony and some other areas the decrease is 30 to 40 per cent.

On the other hands, the large scale selling and purchasing activities of plots in Scheme 33, Super Highway, which was underway in full swing prior to the May 12, also slowdown and a high decline of about 50 percent in property prices registered in the area.

Reports said that in days to come more investors were expected to draw their capital from the business.