Builders focus on low-cost projects

[LahoreEstate]

Some builders, who had ventured in Dubai and Ajmaan, after either pulling out safely or making some profits in the boom period, are now coming back and focusing on low-cost schemes. - File photo.

KARACHI: As many as 30-40 new low-cost projects of apartments and houses have been launched in the past three months. As the response has improved, builders claim that many more are in the pipeline.

Aggressive media campaigns from various groups of builders and constructors have started attracting potential buyers as majority of advertised projects are located in the city’s remote areas like Northern Bypass, National and Super Highway, Surjani, Gulshan-e-Maymar, Malir Cant and Scheme 33.

Around 15-20 mega projects launched in November 2008 had received a lukewarm response despite massive discounts and other attractions at the time of booking.

However some builders, who had ventured in Dubai and Ajmaan, after either pulling out safely or making some profits in the boom period, are now coming back and focusing on low-cost projects starting from Rs600,000 to Rs1.5 million per unit in remote areas of the city.

Some builders are also offering high value gifts such as tickets for Umrah, Toyota Corolla and motorcycle and a few builders are offering free American kitchen and split AC in every room to lure buyers.

Association of Builders and Developers Chairman Babar Mirza Chughtai confirmed to Dawn that there were many investors of Dubai, who have arrived here and some of them are ABAD members. ‘Rufi Properties has launched a project after nine years,’ he added.

He said there were many reasons for launching low-cost projects primarily the fear of encroachment by land grabbers that had driven many builders to roll new projects out so that some construction activity and hustle and bustle could be started around the projects.

Land encroachers have been active in many areas.

Besides, the Sindh government and the KBCA have also allowed payment of security and scrutiny charges on installments basis on projects covering area of over one acre that lure builders to come out with new projects.

He said these projects were also aimed at attracting low and middle income group who failed to own any apartment or house in the last five years. He said the construction sector had started witnessing some pick up in activities after the launch of low-cost housing projects.

However, he said that the KESC had been creating problems for the last couple of months by not providing power to already built or near-completion houses and multi-storey buildings.

http://www.dawn.com/wps/wcm/connect/dawn...ojects--za