The building located in Choori Mohalla of Hyderabad city was in dilapidated condition and local authorities had issued warnings for its evacuation.
There were eleven casualties, including two women and two children who belonged to one family, senior police official Sarfaraz Bhutto said.
The building, which housed a bangle-manufacturing unit, collapsed around 2pm local time.
"The entire building has collapsed and it was a residential compound but few families were residing in it," an official said.
The official said rescue operations were on to find people still trapped under the debris, but added that their efforts were hindered due to congestion in the locality.
In a similar incident in 1996, 25 people were killed when a multi-storey building collapsed in Market Tower area due to deep digging on an adjacent plot by a builder.