Hyderabad real estate: Unfortunate casualty of Karachi operation
Surviving under shadow of Karachi, Hyderabad gets affected by ups and downs of capital of Sindh
HYDERABAD: (Web Desk) - Hyderabad, the city that manufactures beautiful ajraks, precious ornaments, delicate bangles and yummylicious cakes of Bombay Bakery, is the sixth largest city of Pakistan. This multiethnic city has always been in the limelight for the reasons mentioned in the beginning along with its flourishing real estate. However, the city has lost its charm of late.
Surviving under the shadow of Karachi, Hyderabad gets affected by the ups and downs of the capital of Sindh. Of late, Karachi has observed betterment in terms of political and security conditions. A news report by Reuters, mentioned stats by Citizens-Police Liaison Committee (CPLC), specifying that in 2015 the quantity of enlisted murder cases in Karachi dropped to 650, which is a plunge of 75% in comparison with the murder cases recorded in 2013. Similarly, enlisted extortion and abduction cases have declined 80% and 90% respectively. The improving conditions in Karachi have caught investors’ interest in the city’s real estate.
Safety in Karachi has influenced the Hyderabad realty unfavourably. As pointed out by a representative of Almas Property Consultant, “when lawlessness in Karachi was on the peak, property prices in Hyderabad spiked 10% every year for five years back to back.”He further adds that, “when the general circumstances of Karachi improved, Hyderabad s realty saw a sudden drop in property estimations.”
As per the same representative, Bahria Town Karachi has stolen the limelight from Hyderabad realty. Individuals from interior Sindh have also started investing in the Karachi realty for the extravagant living standards.
In the past, investors in Karachi used to capitalise their sources into Hyderabad ventures when Karachi property market was rickety. Conversely, as Karachi s situation showed positive signs, the investing patterns changed altogether.
Remarking on the effect of motorway on Hyderabad, Almas Property Consultant’s representative feared that "with the development of motorway, Hyderabad real estate will totally be stifled."
In the middle of all this, a drop in the sale and purchase volume of houses in Hyderabad has also been witnessed. People have discontinued investing their resources in this city and began moving their funds to Karachi in view of the accessibility of humongous prospects in the city.
Despite the fact that Hyderabad has facilities like hospitals, an airport, transport terminals, recreational parks, Gymkhana Club, its property sector needs a solid thrust. Extensive volumes of unused land lays fruitless. This land can be utilized to create business and private projects.
Despite having various property projects like, Downtown Residency, Attar Duplex Residency, Green City and a lot more, there is a shortage of purchasers in Hyderabad, which has brought the realty market to a standstill.
Pre and Post Tax Scenario:
The new tax regime, announcing increased taxes for the property sector, has further shook the Hyderabad real estate sector. “We were able to have at least eight to ten deals in a month before the imposition of the new tax mechanism. However, from the past three months only two to three deals have been finalised” says Mazhar Memon of Perfect Associate Real Estate and Marketing. He further adds that ‘post July, 90 percent of the realty market has crashed’.
Hyderabad property sector was already performing slowly for the last couple of years. The implementation of taxes has troubled Hyderabad real estate, hitting the rock bottom. If the state of affairs remains the same, Hyderabad real estate will have to face irrevocable damages.
The story was researched by Zameen.com and shared exclusively with Dunya News.
