KDA shuts residential scheme

The People's Sky View residential scheme, launched by the Karachi Development Authority (KDA) in 2023, had set out to provide affordable housing to the low and middle-income classes. However, just a year and a half into the project's initiation, the scheme has been called off by the KDA on the grounds of its failure to lure in the target investors. Sources close to the project blame the KDA for failing to account for local purchasing trends when pricing the scheme, while also overlooking rising construction costs.

Initially, 700 citizens had expressed their interest by purchasing the application forms, with 150 taking the next step and submitting their applications for the housing project which had aimed to sell approximately 1,200 flats planned across 26 floors, at prices ranging from Rs8.75 million to Rs12.27 million. The total cost of the project was estimated to be around Rs11 billion.

Once such investor was Riyaz Ahmed, a resident of the Federal B Area, who had initially purchased a form for Rs5,000 but ultimately decided not to proceed with the investment due to the soaring inflation rate and the flat's exorbitant price. However, Ahmed expressed optimism about reconsidering the purchase if the KDA revised the pricing. "If KDA reduces the price of the flat, I will definitely buy it," he said.

According to Chaudhry Muhammad Manzoor, a real estate expert in Surjani Town, the exorbitant prices of the flats sold under the People's Sky View scheme contributed significantly towards its failure. "The project's developers failed to consider the local residents' buying and selling habits, leading to a significant mismatch between supply and demand. Such luxury projects may thrive in affluent areas like Clifton, but they are unsuitable for Surjani Town, where expensive flats are unaffordable. In Surjani Town, private builders offer flats for Rs3.5 to Rs5 million, which is a more realistic price range for the local market," expressed Manzoor.

Conceding to Manzoor's claims, an officer from the KDA, speaking on the condition of anonymity stated that despite the People's Sky View project offering luxurious facilities, the high construction costs made the flats unaffordable for many citizens. "The KDA should have considered Surjani Town's real estate situation before initiating the project, which was to be completed in five years," said the official.

Commenting on the matter, Director General KDA, Syed Shujaat Hussain, confessed that the People's Sky View project faced significant challenges, ultimately leading to its discontinuation. One major obstacle, he said, was the lack of interest from citizens, resulting in a disappointingly low number of application forms collected.