Physical activity (PA) is pivotal for health, and Neighborhood Environment (NE) is understood to play a significant role in increasing physical activity. The investigation into the combined effects of NE on PA considering the differences between gated and non-gated types of neighborhoods in developing countries is relatively scarce. As an effort towards filling this gap, this paper reports an investigation that focuses on the association of PA with NE; moreover, it compares the PA in gated and non-gated neighborhoods in Karachi, Pakistan. Data were calculated through objective and subjective methods. 8 out of 16 neighborhoods were gated. 499 out of total 1042 participants were from the gated neighborhoods. Partial correlation and binary logistic regression analyses were carried out. The effects of age, gender, and employment status were controlled for the purpose of statistical analysis. Positive relationships were identified between walking and street connectivity and land-use mix. The relationship between walking and housing density was negative. The number of physical activity facilities (PAF) was found to positively influence vigorous physical activity (VPA). It was noted that there were more PAF in gated neighborhoods, hence an enhanced VPA there, but only among young age group people. Therefore, it has been concluded that new policies for neighborhoods design should be formulated to provide multiple choices for every individual so that they can achieve the required levels of physical activity.