Market Concerns Rise as NAB Targets Malik Riaz, Property Prices Drop in Bahria Town Karachi
Karachi:The property business in Pakistan, which had begun showing signs of recovery after years of decline, is facing a setback following National Accountability Bureau’s (NAB) renewed actions against property tycoon Malik Riaz. The news of NAB’s focus on Bahria Town and Malik Riaz’s controversial statements has cast a shadow over the booming real estate sector, particularly in Bahria Town Karachi.
Abdul Jalil Khan Marwat, a property owner and real estate professional associated with Bahria Town, shared his concerns, stating that just as the property market was improving, NAB became active, and Malik Riaz’s statements added fuel to the fire. He mentioned that traveling to Bahria Town from Karachi now incurs an additional cost of 140 rupees in toll tax and 120 rupees for using the Lyari Expressway, totaling 260 rupees daily. While Bahria Town had previously removed these tolls, they have now been reintroduced.
Regarding property prices, Marwat explained that just a month ago, there had been a positive shift, but since the recent statements, Bahria Town properties have once again seen a significant decline. He pointed out that properties, such as villas that were valued at 50 lakh rupees in 2021 and had risen to 95 lakh rupees, are now back to their original value of 50-55 lakh rupees. The value of a villa worth 1.95 crore rupees has now fallen to around 1.25 crore rupees. He speculated that prices may continue to drop further.
While some buyers are hesitant, Marwat noted that even those who already own properties in Bahria Town are now considering leaving, as many believe it would be better to secure their investments elsewhere.
Maaz Liaquat Abdullah, a property business professional, observed that property trading in Karachi had begun picking up, especially in the Defence area, and expected the positive trend to spread throughout the city and beyond. He acknowledged the dip in Bahria Town property prices but noted that it was likely a small decrease of around 5-10%. Despite the recent challenges, Abdullah pointed out that properties in Bahria Town were still a more affordable option compared to areas like Defence, with buyers seeing value in investing in Bahria Town for lower initial costs.
Faizal Sherwani, a Bahria Town Karachi-based real estate trader, explained that the recovery in Karachi’s property market began after a reduction in interest rates, with many individuals choosing to invest money from banks into real estate. The positive effects were also seen in Bahria Town Karachi. However, he acknowledged that the recent statements from NAB and Malik Riaz’s response had caused some uncertainty in the market. Despite this, he believes that as people understand the government’s efforts to curb money laundering, confidence in the market will be restored. Sherwani further mentioned that although some individuals sold their properties in fear, this didn’t imply that Bahria Town was collapsing; on the contrary, the market is still active, with both buying and selling continuing and even a boost in construction activities.
In conclusion, while the recent developments have caused some turbulence in the Bahria Town Karachi real estate market, industry professionals remain optimistic that the market will bounce back once the uncertainty subsides.
