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Karachi Property Holds Steady as High Interest Rates Cool Speculation

Karachi Property Holds Steady as High Interest Rates Cool Speculation

IQI’s October 2026 market outlook says Karachi’s property market is holding up despite the State Bank of Pakistan’s 11.50 percent policy rate, with buying now driven more by genuine, value-focused buyers than by leveraged speculation.

Premium residential values remain relatively firm, with a benchmark of about US$320,000 for a 350-400 square yard premium home, and detached houses valued well above apartments. IQI puts Karachi’s citywide gross residential rental yield at about 6.67 percent, below the policy rate.

IQI expects a selective but resilient market in the near term, favouring well-located, occupied properties with good infrastructure access.

What this means for you: With rental yields below bank rates, property is being bought for long-term value rather than quick returns. Location and genuine demand matter most right now.

Source: IQI, 2026-10-10. Summarised by Paras Estates.