RESEARCH & FORECAST

REPORT
KARACHI OFFICE MARKET OVERVIEW - 2016

Accelerating success.

2016 | OFFICE MARKET

RESEARCH & FORECAST REPORT

KARACHI OFFICE MARKET REVIEW

PAKISTAN GDP GROWTH COMPARISON

5%

Pakistans economic growth is showing signs of sustained recovery compared to the previous years.
The factors contributing to this momentum in growth include reform initiatives from the government
(improvement in corporate governance, restructuring of Public Sector Enterprises, strategic
partnership through privatization, taxation and energy sector reforms), commitment to a calibrated
fiscal and monetary management and an overall improvement in macroeconomic conditions.

4%
4%
3%
3%
2%
2%
1%
1%
0%

PAKISTAN ECONOMIC OVERVIEW

2012
Pakistan GDP

2013

2014

2015

2016

World GDP (Avg.)

Linear (Pakistan GDP)
Source: Federal Bureau of Statistics

GRADE BASED DISTRIBUTION OF SPACE

8%
21%

71%

A Grade
B Grade
C and Below

The GDP growth rate in 2015 clocked in at 4.2% as compared to

GoP has envisaged GDP growth rate of 5.5% for 2016. The GDP
dependent on the continued improvement of law and order situation in
had previously restricted economic activity and reduced Foreign

4% in 2014. The
growth forecast is
the country, which
Direct Investment.

The initiation of new projects under the China-Pakistan Economic Corridor (CPEC) is also
expected to significantly contribute to future economic and GDP growth. The CPEC agreement
focuses on a portfolio of USD 45 billion, to be spent on building network of roads, railways and
other infrastructure related developments. Managing Pakistans fiscal deficit, together with high
government expenditure has been a daunting task. In 2015, the fiscal deficit of the country was
5.3% of GDP but is expected to reduce to 4.7% of GDP in 2016. Foreign exchange reserves
have been on the rise and are expected to rise to USD 21 billion in 2016. The inflation rate,
measured by changes in CPI, dropped to 4% in 2015 from previous year figures of 4.6%, and
is expected to remain in single digits which will lead to continued positive real interest rates.

KARACHI CITY OFFICE MARKET

Source: Colliers Research

The traditional office CBD area for Karachi is predominantly located on I.I Chundrigar Road. It
has reached saturation point. The offices in the area began linear expansion, encompassing
the immediate surrounding areas, particularly along M.T. Khan Road and Shahrah-e-Faisal.
The new and emerging business districts tend to be located closer to the high-income
population areas, such as Clifton and DHA. Some notable office developments coming up
in the Clifton area include Bahria Icon Tower, G4, Dolmen Tower A and B and Bakht Tower.

OYSTER COURT, LAHORE

Oyster Court, Gulberg II, Lahore is a fantastic new development in
Lahore. The site is unique in its position and rises above, both literally
and figuratively, all other high-end developments in the city. The
elite location of the development and its high-tech underpinnings
make for an enhanced experience of exclusivity, sophistication and
security.
Apartment Features Include:
Luxury apartments
24-hour security
Two seven story buildings connected through a central courtyard
Central Courtyard with water features
Fitness Gym, and Swimming Pool facility
50% of plot area allocated as an open space for side gardens
2 Floors reserved parking for residents
Separate parking for guests
For further details please contact
Ahsan Zaheer

+92 346 821 1039

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| COLLIERS INTERNATIONAL

RESEARCH & FORECAST REPORT | 2016 | OFFICE MARKET | RESEARCH & ADVISORY

DEMAND
The demand factors for office space in Karachi are dependent upon location, parking provisions and security. Lately, we have seen a vast improvement
in the law and order situation of Karachi, owing to the rangers recent clean-up operation. With traditional CBD areas (Chundrigar Road and
Shahra-e-Faisal) becoming congested there is a viable trend of multinational companies choosing to relocate from B grade developments to
those of a better stature. This is evident from the high occupancy rates of A grade developments such as Trakker Tower and Harbor Front.
ENVIRONMENTALLY SUSTAINABLE
DESIGN (ESD) DEVELOPMENT
ESD projects are a relatively new concept in Pakistan and thus far the only office development project
to incorporate ESD features is G-4 Tower located in
Clifton. ESD adds tremendous value for not only the
developer, but the end users (tenants) as well.
Energy usage savings;
Water and waste consumption and transportation;
Lowering of asset operating costs;
and lower green house carbon emission

MARKET OUTLOOK

SUPPLY
According to our estimates, Karachis office market accounts for a total supply of nearly 15 million
sq. ft., located in commercial buildings of different grading scattered across the city. Clifton accounts
for the major share of A grade developments, whereas I.I. Chundrigar and Shahrah-e-Faisal have a
majority of B and C grade developments. Clifton is fast emerging as the new business district due to
less traffic congestion, better security measures, being closer to the high income residential suburbs
and excellent linkage with the other parts of the city through the Mai Kolachi bypass. Prominent office
developments in the Clifton area include Harbour Front, Executive Towers, Ocean Tower and Emerald
Tower. The offices in these buildings are known for their quality and stand out from the rest of the office
stock available in the city. Recently, Colliers has witnessed considerable demand from multinational
companies requiring office space in the Clifton area largely attributed to the aforementioned reasons.

LEGEND KEY - UPCOMING (HIGH END)

OFFICE DEVELOPMENTS
With several projects in the pipeline (Bahrias
Icon Tower, G-4, Bakht Tower, Dolmens Office
SR. NO. NAME
EXPECTED YEAR
Towers) it appears that the Karachi office market
1
Bahrias Icon Tower
2017
might see a slow take up rate due to the multiple
2
G4 Mega Tower
2016
options to be added to the current supply. Although
3
Dolmens Office Tower
2017
we do feel that there is room for quality office
4
Bakht Tower
2016
space, this demand needs to be sustained by
OTHER
the overall economic climate of the country. If
Karachi
International Airport
Pakistan remains economically stable, then we
Karachi
Citys Outer Boundary
foresee many foreign companies will enter the
Karachi citys Main CBD (I.I. Chundrigar Road)
market and in effect will procure quality office
Karachi Citys Secondary CBD (Shahrah e Faisal)
space. Moving towards B Grade and C Grade
office developments again depends upon economic
Karachi Citys Emerging CBD (Clifton & Defence)
Source: Colliers Research
indicators it will be difficult for these buildings
to fill up in a timely manner but if the economy keeps growing at the pace it has been we can expect demand for these developments. Currently many
small to mid-size companies are relocating from traditional areas such as M.A Jinnah Road to B Grade and C Grade developments located on
Shahrah-e-Faisal due to ease of access, better office premises etc.

GRAND SQUARE MALL, LAHORE

Colliers International presents an opportunity to invest in prime
retail/office space in a modern building that will showcase all that
Lahore has to offer. The site is uniquely situated at Centre point
with links to key parts of the city. Grand Square Mall will be home
to exclusive brands and the finest fashion stores. Our offices will
cater to the elite business segments of Lahore and will provide
high-quality office space of different sizes.
Development Features include:

House of Brands


Food Court


Spacious Car Parking

Full Back-up Generator and much more

For further details please contact

P. 3

| COLLIERS INTERNATIONAL

Play Zone
Executive Offices

Jehanzaib Akram
+92 346 821 1041

RESEARCH & FORECAST REPORT | 2016 | OFFICE MARKET | RESEARCH & ADVISORY

WHY COLLIERS INTERNATIONAL PAKISTAN?

MARKET LEADERS IN PAKISTAN REAL ESTATE

Amongst the Big Four Property Advisory Firms, Colliers International is the only global firm
with operational offices in Pakistan. We specifically deal and specialize in real estate sector
including mixed use development, residential, commercial, hospitality, retail and industrial
projects.
IN-DEPTH KNOWLEDGE OF LOCAL REAL ESTATE MARKET

Our experience in Pakistan for many years has enabled us to establish strong relationship
with key stakeholders of the real estate market. This has led us to acquire unmatched market
intelligence which assists us in providing systematic recommendations to our clients in order to
take key investment decisions.
HIGHLY EXPERIENCED TEAM

We have a highly qualified and competent team with extensive experience and knowledge of the
local real estate sector gained over the course of our operation in Pakistan. Our team comprises
of:
- Market Research Analysts
- Property Valuers
- Sales & Lease Executives

554 offices in
66 countries on
6 continents
United States: 153
Canada: 34
Latin America: 24
Asia: 39
ANZ: 192
EMEA: 112
$2.5 billion in annual revenue
billion square feet under
management

Over

16,000 professionals

Colliers International Statistics 2015

Colliers International Pakistan (Pvt) Ltd.

Suite 1/A, Level 1, Harbour House
off M.T. Khan Road, Lalazar Avenue, Karachi
Pakistan
Tel +92 21 3561 2550-2
Fax +92 21 3563 6382
Email: hussain.khan@colliers.com

ACCESS TO GLOBAL COLLIERS EXPERTISE

Colliers International Pakistan is a part of and linked with Colliers global network. On specific
requirements of the project and scope of work, we liaise and draw expertise from Colliers
offices around the world.
CREATIVE THINKING & RECOMMENDATIONS

We have a methodological approach for carrying out our projects in which experts from research,
valuation and sales divisions brainstorm to provide creative solutions to the real estate needs
of the client. We pride ourself in providing factual recommendations based on realistic market
conditions

Muhammad Hussain Khan

Senior Manager - Research & Advisory Services
Contact No. +92 346 821 1002

EXCEPTIONAL PROJECT TRACK RECORD

During our operations in Pakistan, we have worked on most of the high-profile projects
announced in major cities of Pakistan.
HIGH PROFILE CLIENTELE

We take pride for having worked with all the major developers whether foreign or local currently
working in Pakistan. Some of our local clients include Dolmen Group, MCB, K Electric, Nishat Group,
Dawood Group, Orange Group, Dhabi Group, Avari Group, DHA Karachi, Lahore and Islamabad.
Our foreign clients include Emaar, Etisalat, Pfizer, Siemens, Urbis, Johnson & Johnson, Sanofi
Aventis, Standard Chartered Bank, US Dept. of State, Foreign and Commonwealth Office UK.

Research focus on key urban cities including Karachi, Lahore,

Islamabad, Faisalabad & Gujranwala
Comprehensive market reports
Up to date and extensive research database
In-depth analysis of supply and demand position
Critical watch on pricing trends

+92 346 821 1000

+92 346 821 1003

may not be reproduced, either in whole or in part, nor altered in any way,

DEVELOPMENT ADVISORY

Highest & Best Use Study of large plots

Comprehensive project feasibility reports
Development Appraisal and Due diligence
Coordination with master planners and architects in project
planning stages
Investment appraisal using sophisticated Estate Master

PROPERTY VALUATION

INVESTMENT SERVICES (SALES & LEASING)

Property valuation based on market evidences and residual

land value method
Registered with Pakistan Bankers Association
Registered with Pakistan Engineering Council
Registered with Pakistan Council of Architects and Town
Planners

www.colliers.com/en-gb/Pakistan
www.colliers.com/en-gb/Pakistan

Kamil Noorani
Manager Research & Advisory

This document has been prepared by Colliers International for advertising. It

OUR SERVICES
REAL ESTATE MARKET RESEARCH

Hammad Rana
Senior Manager Corporate Solutions &
Investment Advisory

Preparation of title deeds and sales documents

Assisting and management of transactional process
Client & Tenant representations
Preparation of marketing documents including brochures,
flyers, press ads
Assessment of lease terms

without the prior written consent of Colliers International. The information

and analysis contained in this report has been obtained from or based on
information from a variety of sources generally regarded to be reliable and
assumptions which are considered reasonable, and which was current at the
time of undertaking market research. However, no representation is made,
or responsibility accepted by Colliers International, in respect of the accuracy
or currency of this information. Potential investors or developers are
encouraged to carry out their own assessment of market potential and
development feasibility.

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