Karachi: Low-cost houses get strong response

[Naveed Yaseen]

By Faryal Najeeb
KARACHI: The very first project in the low-cost housing scheme that private builders have taken up along with foreign developers has already been launched in Karachi amid tremendous response, signifying the private sector’s commitment to the real estate sector.

Following the UAE real estate meltdown, not only did Pakistani investors return to the country but many international builders and developers turned their attention to Pakistan in search of lucrative investments.

Local builders claim that these foreign investors are ready to invest in Pakistan as the housing projects launched here have strong demand from the public as means of personal investment and not profiteering.

They said the fact that people are investing for personal gains assures foreign investors that there would be just one owner of the house and there would be no change of hands as was the situation witnessed in the UAE real estate investments which led to an ultimate disaster for the Arab country.

Chairman of K K Builders Munir Sultan said that due to the housing backlog that the country faces and the disinterest of the government to tackle the issue, private builders have been provided with opportunities to take the challenge in to their hands and meet the growing demand for low-cost houses.

He informed that some of the countries with whom MoUs or contracts have already been signed include Singapore, Malaysia, UAE and Saudi Arabia. He further said that all the agreements that have been signed so far are for low cost housing schemes and aimed towards the local and middle class society of the country.

The scheme that has already been launched in this initiative is by Al Manzil Builders and Developers in collaboration with Lightweight Construction Methodology, Malaysia. The housing project based on 26 acres of land near Northern Bypass and by the name of Areesha City would comprise of over 500 one unit bungalows of 120sq yards.

Muhammad Naeem, owner of Al Manzil, informed that only they have the license to use the Malaysian technology of using lightweight concrete material to build houses. “This way we not only brought foreign investors into Pakistan but also introduced a new form of technology for the housing sector,” he added.

Naeem said that they plan to introduce further low cost housing projects all over Pakistan and about three additional schemes are in the planning stage. He said that they introduced their first low cost houses in Karachi as the market is firm here and now they would be turning towards Multan.

He commented that people are willing to invest in houses if they are within their budget and if the builders are trustworthy. “The unfortunate part is that the government is not at all willing to help us private builders in our initiatives that either delay projects or cause other hindrances which consequently also affect our relationship with our investors,” he expressed.

Citing the example of his venture Areesha City, Naeem said that 80 per cent of the project had been sold out within a week of its launch as people were ready to shell out a million rupees to own a home where prices of properties had hiked to several million rupees that not everyone could afford.

“This highlights several points that should be taken note of,” he continued.

“The potential in the market and the willingness of the people to invest their savings which in turn also reflects the magnitude of the demand against the supply in the county,” he further stated.

http://www.thenews.com.pk/daily_detail.asp?id=161862