Karachi  -  Mohammad Ali Jinnah University’s Prof Dr Zubair Shaikh says that an MBA programme on Real Estate Management will be launched at the university from next year. He said that it will be the first degree programme started by any university in the country here.

He stated this while addressing an MAJU fortnightly programme at the university campus last evening.

 

Head of CITI Associate Mohammad Shafi Jakvani delivered his lecture on the topic of “Four Decades of Real Estate Sector in Karachi”. MAJU Associate Dean Dr Shujaat Mubarak, Director of QEC D. Munir Hussain, HODs, Dr Aziz Ur Rehman Saifee, Dr S.M. Noman Shah and Asif Naji and Business Administration & Social Sciences faculty members were present on this occasion.

 

 

 

Speaking to this program, Shafi Jakvani said that Real Estate Sector which is highly profitable sector of the country is declared as industry, its regulatory body is constituted and MBA-Real Estate Management degree programs be started in Pakistani universities. He told that according to a study on Real Estate activities from 1980 to 2016, it was revealed that price increase of gold per ounce was 41 times, KSE 100 index 42 times but DHA, Phase VIII plot was noted 4,000 times during this period.

He said that average compound rate of return in real estate sector since 1980 to 2016 was remained on gold per ounce 10.62 %, KSE 100 Index, 14.36 % and on DHA Phase VIII plot was 24.04 %. He told that those who obtained plots in DHA, DHA City at Super Highway, Clifton and Bahria Town areas earned huge profits on their investment.

He said that prices of land in DHA till 1980 were on very lower side but due to deteriorated law & order condition in the city the prices shoot up at very higher side and millions of rupees profit was earned by the investors. He said that when DHA City was announced at supper high way, a large number of peoples purchased plots there. He further told that a plot of DHA City purchased at the rate of Rs. 1.9 million was later on sold at an amount of up to Rs. 20 million. Shafi Jakvani said that in 2013 when Bahria Town, Karachi was announced around one lakh and fifty thousand peoples obtained its membership.

He told that according to an estimate Bahria Town administration have earned around Rs. 3 thousand billion profits during last five year. Forecasting about Real Estate sector in 2018, he said that Purchase prices of apartments, house and plots will go up by 5 to 10 %, but rental rates will be remained same. He told that demand for apartments will Increase by 10 to 20 % and new apartment blocks will be constructed to meet it.

 He expressed his concern over not updating of valuation table of properties by Sindh government since 1986. He said that for this reason there exists a big gap between documented and market price of the properties. He told that a property having value around Rs. 10 million is documented at a price of Rs. 3 million only. However, the valuation table announced by Federal Board of Revenue (FBR) in 2016 is very realistic to meet the market requirement.