by 
From Old Structure to Modern Asset — Real DHA Karachi Numbers Explained
(ApnaDHA Research Desk, 2025 Edition)
🏙️ Introduction — Why This Case Study Matters (Reliable Contractor in DHA Karachi)
Every day in DHA Phase 6, old 500-yard homes are being torn down and rebuilt.
But few investors actually track the math behind these projects — the real cost, timeline, resale gain, and ROI percentage.
This detailed ApnaDHA case study breaks down a realistic 500-yard rebuild project in Phase 6 (Rahat) — including before-and-after cost analysis, BOQ summary, builder challenges, and final profit calculation.
It’s designed to help builders and homeowners replicate this ROI model safely and smartly in 2025–26.
🧱 1. Project Overview — Phase 6 Rebuild Snapshot
| Detail | Data |
|---|---|
| Plot Size | 500 Square Yards |
| Location | Rahat Commercial Back Lane, DHA Phase 6 |
| Old House Age | 19 Years (Built 2005) |
| Old Structure Type | 2 Floors + Basement (weak RCC foundation) |
| Project Type | Full Demolition + New G+2 Rebuild |
| Total Timeframe | 13 Months |
| Project Lead | ApnaDHA Verified Builder |
| Goal | Sell Post-Rebuild / Investor Flip |
💣 2. Pre-Rebuild Evaluation (Old House Condition)
Before demolition, engineers noted:
- Cracks in load-bearing walls (settlement signs).
- Weak waterproofing in basement.
- Poor ventilation & small kitchen layout.
- Old plumbing using steel pipes causing rust stains.
- Outdated mosaic flooring and electrical junctions.
📉 Market Observation (Q1 2024):
Old 500-yd homes in Rahat averaged ₨ 200–220k/yd² — nearly 25% below market of new builds.
Before starting demolition or excavation, every builder must comply with the official DHA Karachi Building By-Laws to ensure structural safety and NOC approval.
🏗️ 3. Project Scope & Design
Objective:
Create a modern, energy-efficient, family-oriented house for upper-middle-class buyers.
Highlights of New Plan:
- 2-unit layout (Ground + First Floor separate entrances).
- 6 bedrooms + basement entertainment zone.
- Open kitchen with island.
- Skylight & smart lighting.
- Dual solar + grid backup.
- Car porch for 4 vehicles.
💡 Design Note: Architect used north-south orientation for cross-ventilation — crucial for Karachi’s humidity and resale appeal.
As illustrated in our Renovation vs Rebuild Cost in DHA Karachi (2025 Guide), full reconstruction consistently doubles long-term returns compared to surface-level renovations.
💰 4. Cost Breakdown (Actual 2025 Rates)
| Category | Estimated Cost (₨) | % of Total |
|---|---|---|
| Demolition + Waste Disposal | 1.5 M | 6 % |
| Grey Structure (RCC + Masonry) | 8.8 M | 35 % |
| Plumbing + Electrical | 3.5 M | 14 % |
| Finishing (Tiles, Paint, Ceiling) | 7.2 M | 29 % |
| Woodwork + Fixtures | 2.8 M | 11 % |
| Exterior + Landscaping | 1.5 M | 5 % |
| Total Build Cost | ₨ 25.3 Million | 100 % |
📎 Reference: Construction Cost per Sq Ft in DHA Karachi (2025 Guide)
📆 5. Timeline Breakdown
| Stage | Duration | Notes |
|---|---|---|
| Demolition & NOC | 3 Weeks | Smooth DHA approval |
| Foundation + RCC | 2 Months | Excavation + steelwork |
| Masonry + Roof Work | 3 Months | 3 floors |
| Finishing + MEP | 4 Months | Imported tiles & Porta sanitary |
| Woodwork + Painting | 2 Months | Mix of ash & walnut |
| Final Touches + Handover | 1 Month | QA & cleaning |
💡 Total Project Duration: 13 Months (from plot clearance to sale listing)
The project avoided typical delay and cost overruns by following the exact procedures outlined in How to Choose a Reliable Contractor in DHA Karachi (2025 Checklist).
📊 6. Market Value Comparison
| Stage | Value (₨) | Change |
|---|---|---|
| Old House (Pre-Demo) | 105 M | — |
| Post Rebuild (New Structure) | 150 M | +45 M |
| Net Value Increase | — | ≈ 43% |
💬 ApnaDHA Realtor Insight:
“In Phase 6, new 2025 houses sell 25–30% faster and 40% higher than old 2000s structures — especially those built by branded teams.”
The project avoided typical delay and cost overruns by following the exact procedures outlined in How to Choose a Reliable Contractor in DHA Karachi (2025 Checklist).
💹 7. ROI Calculation
| Parameter | Value |
|---|---|
| Total Investment | ₨ 105 M (land) + ₨ 25.3 M (build) = ₨ 130.3 M |
| Final Sale Price | ₨ 150 M |
| Gross Profit | ₨ 19.7 M |
| Holding Period | 13 months |
| Net ROI | ≈ 15.1% in 1 year (post-tax) |
📎 Compare With: Renovation vs Rebuild Cost in DHA Karachi (2025 Guide)
🧾 8. Factors That Boosted Profit
✅ Efficient design (two-unit = dual buyer target).
✅ On-time completion (13 months vs average 16).
✅ Imported finishes (bath fittings, tiles).
✅ Documented contractor (DHA-approved).
✅ Open-plan layout & smart lighting package.
📊 Additional Bonus: Sold with 1-year maintenance warranty — added buyer confidence and 2% price edge.
⚙️ 9. Common Challenges
| Issue | Impact | Solution Used |
|---|---|---|
| Steel & cement price fluctuation | +8% cost increase | Pre-booked bulk material through supplier contract |
| Labor shortage during Eid season | 2-week delay | Brought backup crew from Phase 7 |
| Approval delay for solar plan | 10 days | DHA E&E Section coordination via ApnaDHA partner |
💡 Lesson: Always pre-plan utility NOCs (K-Electric, Solar, Gas) parallel to finishing stage.
For readers planning interior or electrical works, see our Electrical & Lighting Checklist for DHA Homes (2025 Finishing Guide) and the full House Finishing Cost in DHA Karachi (2025 Guide) for updated brand-wise cost comparisons.
🧱 10. Buyer Demand Pattern (2025–26)
| Buyer Type | Demand % | Preference |
|---|---|---|
| Overseas Pakistani Families | 40 % | Ready-to-move luxury finish |
| Local Business Owners | 30 % | 2-unit rental model |
| Builders / Investors | 20 % | Flip resale potential |
| Tenants (corporate) | 10 % | Lease options |
📈 Phase 6 Rebuilt Houses now command ₨ 280k–350k/month rent — among DHA’s top-performing zones.
🧩 11. Lessons for Builders
- Pre-book material to hedge inflation.
- Use ApnaDHA contractor checklist for supervision.
- Add small luxury touches (smart locks, warm lights).
- Design dual-entrance layout to attract both families & tenants.
- Never compromise on branded materials — resale buyers verify receipts.
This case study supports the broader data from our national report DHA Karachi Investment Strategy 2026, outlining where the next wave of returns will come from
💡 12. Long-Term Impact
| Metric | Old House (Pre-2005) | Rebuilt (2025) |
|---|---|---|
| Maintenance | ₨ 1.2M/year | ₨ 350k/year |
| Rent | ₨ 180k/month | ₨ 330k/month |
| Buyer Interest | Low | High |
| Structural Life | 10 years | 25 years |
| ROI | 6–8% | 15–20% |
🧠 Meaning: Every rupee spent on rebuilding multiplies into long-term rental yield and resale credibility.
🏁 Conclusion — Smart Rebuilding Pays Off
This case study proves what hundreds of builders already know:
DHA Phase 6’s old houses are hidden opportunities.
A smart rebuild not only doubles your design appeal — it multiplies your investment.
📲 Get Help from Verified Builders & Engineers
Visit ApnaDHA.com — Pakistan’s DHA Property Portal to connect with verified contractors, architects, and investors shaping the future of Karachi’s real estate.
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