Guide
MDA vs KDA Plots: Which Carries Less Risk?
By Maham Imtiaz
Real Estate AnalystVerified author
10 min read
Karachi buyers looking for a government-allotted plot usually choose between two authorities. The Karachi Development Authority laid out most of the city's mature neighbourhoods, from Gulshan-e-Iqbal to North Nazimabad, and holds about 700,000 plots. The Malir Development Authority, created in 1993, runs three outer schemes, Taiser Town, Shah Latif Town and the New Malir Housing Scheme, with about 125,000 plots. Dealers often present one as "safer" than the other. The record shows each carries a different kind of risk.
The comparison only makes sense layer by layer. Our guide on how to verify property in Karachi explains that land, building and title risks are checked separately, and MDA and KDA plots differ most on the land layer: whether the plot is delivered, developed and correctly recorded.
This guide compares MDA and KDA plots on title, records, development, possession, dues, encroachment, official values and transfer costs, and shows which checks matter most for each.
The two authorities side by side
| KDA | MDA | |
|---|---|---|
| Created | 1957 | 1993 |
| Schemes | About 45, plus townships | 3: Taiser Town, Shah Latif Town, New Malir Housing Scheme |
| Plots | About 700,000 | About 125,000 |
| Typical location | Central and established Karachi | North-east and east, along the National Highway |
| Typical plot size | 120 to 1,000 square yards and more | 60 to 400 square yards |
| Fresh land for allotment | None, KDA says | None, MDA told the High Court in 2024 |
| Building approvals | SBCA | SBCA |
| Records online | No; phased digitisation announced in 2026 | No |
Risk by risk
| Risk | KDA plots | MDA plots | Lower risk |
|---|---|---|---|
| Plot exists and is developed | Usually developed decades ago | Development incomplete in parts; utilities missing in some schemes | KDA |
| Possession | Usually taken long ago | Pending for many allottees | KDA |
| Utilities | Generally connected | Electricity and gas not installed in the New Malir Housing Scheme | KDA |
| Old record gaps | Common in files 40 to 60 years old | Files are newer | MDA |
| Amenity and china-cut plots | Concentrated in older KDA schemes | Fewer reported cases | MDA |
| Encroachment | Mostly on amenity land and outer blocks | Repeated in Taiser Town and Shah Latif Town sectors | Depends on location |
| Dues and cancellation | Old demands such as non-utilisation fees | Unpaid instalments and default cancellations | Depends on the file |
| Lease term | Many leases have decades already used | Leases newer or not yet executed | MDA, if leased |
| Liquidity | High in central schemes | Lower; varies by sector | KDA |
The pattern is clear. A KDA plot's main risk is in its history: an old file, a lease running down, an amenity plot sold as residential, or an old dues demand. An MDA plot's main risk is in delivery: whether the plot has been developed, handed over and connected.
KDA risks in practice
Old KDA files carry old disputes. In April 2026, the Sindh High Court ruled on Clifton plots where KDA had demanded non-utilisation fees calculated on a retrospectively enhanced plot value, in one case Rs2.34 million on a plot whose full occupancy value had been Rs1.2 million. The Sindh High Court judgment of 6 April 2026 held that KDA had no authority to enhance the value retrospectively and ordered dues recalculated on the original terms.
| KDA risk | What to check |
|---|---|
| Lease term running down | Lease date and remaining years |
| Non-utilisation fee on a vacant plot | Dues statement, and the basis of any demand |
| Amenity or china-cut plot | Layout plan |
| Broken transfer chain | KDA's transfer orders from the original allottee |
| Power of attorney chain | Whether each sale was registered |
Most of these risks come from time rather than from KDA itself. A plot allotted in the 1960s or 1970s may have passed through several owners, some by unregistered powers of attorney, while its lease has used up much of its 99-year term.
Ask for the full file before agreeing a price, not after. Gaps that take months to fix at KDA should lower what you pay.
The lease is KDA's main title document. Our guide to KDA lease and lease extension explains how to read the term and when to extend it.
MDA risks in practice
MDA's record is newer but thinner on delivery. In the Taiser Town audit for 2017-18, the Auditor General found MDA had collected about 72% of occupancy value and about 14.5% of utility charges due. In 2019, MDA said only 807 possessions had been handed over in Taiser Town's first phase, with 59,481 pending. A later report found only 231 of more than 27,107 New Malir Housing Scheme allottees had possession.
| MDA risk | What to check |
|---|---|
| No possession | Possession order and demarcation |
| No utilities | Water, power and gas on site |
| Unpaid instalments | Dues statement and no-dues letter |
| Cancellation for default | MDA confirmation the allotment is live |
| Encroached sector | Site visit and MDA anti-encroachment record |
| "KDA" label on an MDA scheme | Shah Latif Town and Taiser Town began as KDA schemes; verify with MDA |
| Fake ballot files | Allotment letter in the seller's name |
Our guide to the Malir and Lyari development authorities explains how MDA's three schemes compare with each other.
Official values: not what dealers suggest
KDA land is not always valued above MDA land. The FBR's 2024 Karachi table shows the outer KDA schemes valued below MDA's.
| Scheme | Authority | Residential open plot, per sq ft |
|---|---|---|
| KDA Scheme 1 and 1-A | KDA | Rs8,200 |
| Chandni Chowk, Scheme 7 | KDA | Rs2,600 |
| Scheme 33 (general row) | KDA area, society land | Rs1,100 |
| Taiser Town | MDA | Rs700 |
| Shah Latif Town | MDA | Rs500 |
| Surjani Town, Scheme 41 | KDA | Rs400 |
A plot in KDA's Surjani Town is valued lower than one in MDA's Taiser Town. The authority's name says less about value than the scheme and its development.
Transfer costs compared
| Cost | KDA | MDA |
|---|---|---|
| Authority's transfer fee | Published: Rs345 per sq yd up to 120 sq yd, Rs518 above, in Schemes 24 and 36 | Paid by challan; MDA does not publish a schedule online |
| Mutation after a registered deed | Rs173 per sq yd | Recorded by MDA |
| Stamp duty | 2% of the FBR value on a registered sale deed | Same, once the plot is leased |
| Advance tax | On the FBR value | On the FBR value |
Because stamp duty and advance tax follow the FBR value, a central KDA plot costs far more to transfer than an MDA plot of the same size.
Which should you choose?
| Your priority | Usually lower risk |
|---|---|
| Building a house soon | A developed KDA plot, or an MDA plot with possession and utilities confirmed |
| Lowest entry price | MDA, or an outer KDA scheme |
| Long-term hold with clean records | A recently allotted MDA plot with a clear dues record, or a KDA plot with a long lease remaining |
| Avoiding amenity and china-cutting disputes | MDA, or a KDA plot confirmed on the layout plan |
| Easy resale | Central KDA schemes |
Neither authority's plots are safe by default. Match the checks to the risk each one carries.
What the numbers show: Milkiyat.com findings
KDA holds about 5.6 times as many plots as MDA. 700,000 ÷ 125,000 = 5.6 times.
Central KDA land is valued nearly 12 times MDA's Taiser Town. Rs8,200 ÷ Rs700 = about 11.7 times.
But MDA's Taiser Town is valued 75% above KDA's Surjani Town. Rs700 ÷ Rs400 = 1.75 times.
Stamp duty on a 120-yard plot ranges from about Rs8,600 to Rs177,000. 120 square yards = 1,080 square feet. At 2% of the FBR value:
- Surjani Town (KDA): 1,080 × Rs400 = Rs432,000 × 2% = Rs8,640
- Taiser Town (MDA): 1,080 × Rs700 = Rs756,000 × 2% = Rs15,120
- KDA Scheme 1: 1,080 × Rs8,200 = Rs8,856,000 × 2% = Rs177,120
MDA had handed over about 1.3% of Taiser Town's first possessions by 2019. 807 ÷ (807 + 59,481) = about 1.3%.
A KDA lease from 1965 has 38 years left. 1965 + 99 = 2064; 2064 − 2026 = 38 years.
The disputed KDA demand was nearly twice the plot's original value. Rs2,344,290 ÷ Rs1,200,000 = about 1.95 times.
Checklist for either authority
| Check | KDA plot | MDA plot |
|---|---|---|
| Authority holding the file today | KDA | MDA (even if papers say KDA) |
| Allotment and transfer chain | KDA land department | MDA land department |
| Lease and remaining term | KDA | MDA, if executed |
| Dues statement | KDA | MDA |
| Possession | Usually settled; confirm | Possession order and demarcation |
| Utilities | Usually connected | Confirm on site |
| Layout plan use | Check for amenity | Check sector plan |
| Approved building plan | SBCA | SBCA |
Frequently asked questions
Q1. Are KDA plots safer than MDA plots?
A. Not automatically. KDA plots are usually developed and possessed, but older files carry record, lease and amenity risks. MDA plots are newer, but many lack possession or utilities.
Q2. Why are MDA plots cheaper?
A. MDA's schemes are on Karachi's outer edges and many sectors lack full development. Some outer KDA schemes, such as Surjani Town, are valued even lower.
Q3. Do MDA and KDA plots need SBCA approval?
A. Yes. SBCA approves building plans in both authorities' schemes.
Q4. Can a Taiser Town plot be a KDA plot?
A. Taiser Town and Shah Latif Town began as KDA schemes but are now held by MDA. Verify them with MDA.
Q5. Which has better records?
A. Neither has records online. KDA files are older and more likely to have gaps; MDA files are newer but may show unpaid dues or cancellations.
Q6. Can either authority cancel a plot?
A. Yes. KDA has issued cancellation notices over old dues, and MDA over unpaid instalments. Courts have limited both when demands were unlawful.
Q7. Which is better for building a house now?
A. A developed KDA plot, or an MDA plot where possession and utilities are confirmed on site.
This guide is for general information. Scheme conditions, values and procedures change, and buyers should verify every plot directly with KDA or MDA, SBCA and a qualified lawyer before paying.