* Industrial real estate dearer in Karachi than China, Malaysia, Thailand, UAE, Sri Lanka and India

By Sajid Chaudhry

ISLAMABAD: Industrial land in four successful industrial estates in Karachi is more expensive than the real estate available in industrial estates of China, Malaysia, Thailand, UAE, Sri Lanka and India.

Availability of industrial land in existing industrial estates of Karachi is minimal and over the last few months prices have dampened and stabilised, reveal the findings of a survey details of which were presented before the Economic Coordination Committee (ECC) of the Cabinet.

Industrial land in Federal "B" Area Karachi costs Rs 85 million per acre for a 99-year lease, Korangi (Main) Rs 56 million per acre for a 99-year lease. Landhi charges Rs 36 million per acre for 99-year lease. An acre in North Karachi industrial costs Rs 65 million for 99-years' lease. Land in S.I.T.E (Main) is priced at Rs 56 million per acre for a 99-year period.

It is hoped that availability of industrial land at Rs 24.50 million in low-density areas and at Rs 85 million per acre high-density areas of Korangi Creek Industrial Park, Karachi would help overcome the shortage of land for industrial purposes for rapid provincial industrialisation.

A comparative study was conducted by independent valuer to get an estimate of current market prices of different industrial estate lands in Pakistan and surrounding regions. For land in Karachi, valuers visited areas at Korangi Industrial Estate, Landhi and Quaidabad Industrial Estates, Sindh Industrial and Trading Estate, Federal B Industrial area and Port Qasim Industrial Zone.

This survey was conducted in a manner that independent valuers contacted several real estate agents and other sources in locality in order to ascertain the current asking price of industrial land. It was visible from the survey that prices of industrial land vary a great extent in different localities depending upon location, size and frontage.

In Punjab no concept of lease was not in vogue and the survey revealed that industrial land in Punjab is available on ownership basis at competitive rates. M3 City Faisalabad costs Rs 5 million per acre on ownership basis. Sunder Industrial Estate, Lahore is priced Rs 4.3 million per acre. Land in Value Added City, Faisalabad costs Rs 5 million per acre. Sialkot Industrial Estate charges Rs 5 million per acre.

Prices of industrial land in NWFP show that real estate in Hayatabad costs Rs 4 million for a 99-year lease, Hattar Industrial Estate and Gadoon Industrial Estate charge Rs 0.66 million for a 99-year period.

The survey also quoted price of industrial land in China. In Beijing Zhongguancun Life Science Park land costs Rs 50.75 million per acre, Shanghai Zhangjiang Hi-tech park Rs 56.86 million per acre and Chengdu High Tech Development Zone at Rs 15.41 million per acre.

Land in Technology Park, Kuala Lumpur, Malaysia is available for Rs 10.38 million per acre and at the Emirates Modern Industrial Area at Rs 29.23 million per acre.

Among the industrial parks in Thailand, the survey quoted prices of the Amata Nakoram Industrial Estate at Rs 10.89 million per acre, Eastern Seaboard Industrial Estate, Rs 10.89 million per acre, Wellgrow Industrial Estate Chachoengsao, Rs 20.19 million per acre and Rojana Industrial Park at Rs13.28 million per acre.

In Sri Lanka, Seethawak Industrial Park charges Rs 5.5 million per acre, My Phuoc Industrial Park Rs 9.87 million per acre.