However, there are still a few mid-range commercial property options available for investors. The four areas of Karachi where commercial property can still be purchased within a price range of Rs 5 and 15 million are:
1 Block 2, Clifton. This is a well-established commercial area, primarily dominated by standalone shops. The rental yields are promising, while annual ROIs can go as high as 18 to 20%. It is therefore not surprising that the demand for commercial property in Block 2, Clifton, has increased by 25 to 30% year-on-year.
Available shop size: 200 square feet
Purchase price range: Rs 10-15 million
Monthly rental range: Rs 60,000-150,000
2 Block 2, PECHS. Comprising many commercial hubs, including Tariq Road, Khalid Bin Waleed Road and Shahrah-e-Qaideen, Block 2, PECHS has plenty of small shops offering yearly ROIs of 22 to 25%.
Available shop size: 200 square feet.
Purchase price range: Rs 8-12 million
Monthly rental range: Rs 40,000-65,000
3 North Karachi Industrial Estate. A small industrial unit is the ideal investment choice here. Demand of built-up property is increasing by four to eight percent every year, while investors can expect annual ROIs of 10 to 20% as well as steadily growing rental incomes.
Available factory size: 80 square feet (ground plus one )
Purchase price range: Rs 8-10 million
Monthly rental range: Rs 38,000-60,000
4 Rashid Minhas Road: With the increasing presence of shopping malls and commercial centers in this area, annual ROIs of 10 to 20% and rental yields increasing by nearly six to eight percent a year have become the standard for shops located within malls are more expensive, but also offer substantially higher ROIs and rental yields.
Available shop size: 300 square feet
Purchase price range: Rs 7.5-12 million
Monthly rental range: Rs 30,000-90,000
By Maria Moten. Information provided by Global Real Estate, Karachi.
