USD 43Bn development project approved

According to this news report, Emaar, the largest real estate development firm in the gulf, will develop 2 of Karachis neighbouring islands, Bundal and Buddo at a total cost od USD 43 billion.

Emaar will hold 85% stakes to the project, while the remaining 15% will be held by the Port Qasim Authority in exchange for the real estate.

The project will take approximately 13 years to complete and will have housing, educational facilities, hospitals, malls and office complexes.

Question: With the extreme upsurge in the supply of “luxury housing”, is it not possible that Karachi may be faced with higher supply than the demand for such projects? Currently, according to some sources, Dubai is facing the same.

8 Comments so far

  1. MB (unregistered) on September 30th, 2006 @ 10:53 am

    “Development” ? Of whom ?. Those who already have “housing, educational facilities, hospitals, malls and office complexes ” will have more.
    Whats the point in it, i wonder. So will a person from korangi will go to Bundal and Buddo to this so called hospital there.Dont they have anything better to serve inside Karachi. But anyways, they have every right to do what ever pleases them. Its just another money-making adventure.

  2. SWA (unregistered) on September 30th, 2006 @ 11:27 am

    I hope they include cheap housing for the lower and lower middle classed people as well.

  3. Wahidi (unregistered) on September 30th, 2006 @ 11:31 am

    well answering ure question……
    the higher supply will simply lower the prices….:)….so not only the higher class can afford it….but highr-middle or even middle can join the ranks:)……

  4. Wahidi (unregistered) on September 30th, 2006 @ 11:32 am

    well answering ure question……
    the higher supply will simply lower the prices….:)….so not only the higher class can afford it….but highr-middle or even middle can join the ranks:)……

  5. verysmart (unregistered) on September 30th, 2006 @ 4:35 pm

    The supply isnt too high yet, consider buying an appartment in karachi .. the decnetly priced ones start at Rs 5 millions.

    .. when u try to buy a decent appartment in karachi you cant get one, the one which are nicely built are usually deprived of water supplies and other necessisities… so in terms of microeconomics the lure is there and is absolutely promising

    Ths issue is.. in terms of Macroeconomics, till when our economy can sustain the lending rates that the banks are offering now, few months ago we saw a hike by state bank when it raised the lending rates from 9% to 9.5%, they did it for controling inflation but if they overdo it, the ever-so-bloomed bubble of our economy will bust (similar has happend three months ago in USA) and all these property values will come tumbling down, people will loose money as they may be forced to sell their properties at a price which is even lower than what they have to return to the banks.

    this may come sooner than we anticipate as i have heard that bank alfalah has already been warned by state bank as they have crossed the limit of their qurterly lending qouta one month earlier than the quarter ends! this is definitley not good news.

    that will be disasterous, I am a pure optimist, but be carefull before you invest in these kind of situations.

  6. yo yo (unregistered) on September 30th, 2006 @ 5:35 pm

    Sounds like great idea to me…Jobs will be created. And Karachi needs a infrastructure boost.

  7. Jamal Shamsi (unregistered) on October 1st, 2006 @ 12:17 pm

    What JOBS ??

    I did not read anywhere in the article how they are going to manage the basic infra structure of electricity and drinking water in those projects. If thats all self generated what could be cost of living / communting from those places.

    Safety security and managing those areas, who will have the jurisdiction, Cantonment boards or the city administration?

    new dubai is 24 KM away from main down town., cost of living there is higher then the usual and super stores / grocerries are charging min 10 ~ 15 % higher then the down town grocerry stores close to appartment complexes.

    vacant appartments are charged for Service charges close to US$ 100 per month for maintaining security and collectiong and distribution of utility bills.

    UP market property development is a good idea, however, maintaining a up market standard for living is quiet different task.

  8. Arsalaan Haleem (unregistered) on October 1st, 2006 @ 3:31 pm

    It’s in the paper, Dawn, today that even the Sindh Govt. doesn’t even know about this gigantic developement project initiated right at its doorsteps.

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