Investing In Restaurants In Karachi

In the last five years, nearly 22% of houses located along primary thoroughfares across Pakistan have been converted into commercial enterprises such as banks, clinics, restaurants and schools. Restaurants are an especially popular investment option as they provide an estimated annual ROI in excess of 55%.

If you are thinking about establishing a restaurant in Karachi, here are three localities which are attracting the most investment:

1 Block 4, Clifton is located between Phase V Extension, DHA, and Block 3, Clifton. Nearly 10% of the houses have been converted into cafés and restaurants, and the demand for houses increase by 25 to 30% each year.

Available plot sizes: 600 and 1,000 square yards

Purchase price ranges: Rs 90,000-110,000 per square yard

Monthly rental range: Rs 400,000-650,000

2 Khayaban-e-Roomi, Clifton stretches between Sea View Road and Khayaban-e-Shaheen. An increasing number of double- and triple-storey houses along this artery are being converted into cafes and restaurants. The demand for houses there increases by 18 to 22% each year.

Available plot sizes: 1,000 and 2,000 square yards

Purchase price ranges: Rs 120,000-150,000 per square yard

Monthly rental range: Rs 550,000-850,000

3 Tipu Sultan Road stretches from Shahrah-e-Faisal to Karsaz Road and is located in proximity to several upmarket neighbourhoods. The demand for residential property for commercial use increases by 18 to 22% every year. Double-storey houses, which have five to six rooms, a terrace and a lawn are especially popular among investors.

Available plot sizes: 1,000 and 2,000 square yards

Purchase price ranges: Rs 78,000-88,000 per square yard

Monthly rental range: Rs 600,000-850,000

By Uzma Khateeb Nawaz. Information provided by CITI Associates, Karachi.