Most people in the city now prefer low-cost housing schemes, in relatively less posh areas, to fulfill their basic housing needs rather than buying property for investment sake.

The areas where low-cost housing is available are quite far from the centre of city and includes areas such as Orangi Town, Surjani Town, Gulshan-e-Tuaheed. Gulshan-e-Maymar, Quetta Town, Gulshan-e-Mehran, Gulistan-e-Kazim and Gulshan-e-Shiraz.

These housing schemes are not just easy on the pockets of the middle class, but in most cases, they can buy property there by paying easy installments, which particularly suits the salaried class.

Plots and one-unit bungalows of 80,120, 400 and 600 square yards or flats are available in these areas at prices ranging from less than Rs 500,000 and Rs 30,00, 000 or above, depending on size, location and facilities available in the area.

Real estate business in terms of investment has been dull for the last two years, not just in Karachi but also throughout the country. Property rates have generally declined by about 20-25 percent and investors seem disinterested in risking their capital in real estate.

Rising cement and steel prices are also a factor hindering investment in the real estate business.

"The real estate business has been in a sate of lull for the last two years and it is a 'wait and see' situation right now," said Ammad Sultan Khan, a real estate consultant operating in Defence, adding: "We do not see any ray of hope for this business and, instead, we are see a more bleak picture for it in the future."

"The situation can further deteriorate in the wake of increasing turmoil in the country, such as the suspension of the Chief Justice of Pakistan on Friday and the impact that will be caused if the US attacks Iran," he said.

Even people buying real estate in more posh and expensive areas such as Defence, Clifton, PECHS, Bahadurabad, etc these days, in most cases, are satisfying their housing needs rather than looking forward to investment prospects.

In recent times, foreign real estate developers have shown increasing interest in investing in Pakistan and developing luxury housing projects to cater to the need of the affluent class.

"The entrance of foreign developers does not mean Pakistan's real estate business will be boosted by any means. Foreign developers have initiated projects in Pakistan for the gentry, but whether it will impact the whole of real estate business is Pakistan, remains to be seen," Ammad said.

There have been talks that the introduction of Real Estate Investment Trusts (REITs) in Pakistan -companies that own real estates and float their shares in the stock market- would bring the real estate business back to its feet. The Securities and Exchange Commission of Pakistan has prepared the draft of rules that will govern REITs in Pakistan.

"There are a lot of legal requirements that will have to be completed before the launch of REITs in Pakistan," Ammad said. "So we do not see much hope in this regard as well."

REITs, even when they are launched, will have a daunting task of spreading awareness among people of what they are and how they operate before winning investors' confidence and enticing them to consider real estate investment again.