Mohammad Saifi (52), a tailor who has been living in the building with his four family members since last nine years on rent, heard some loud earthquake-like sound late in the night.
"He woke up his family and as soon as they came out, the building collapsed like a pack of cards," said a police official, adding two persons suffered minor injuries in the incident.
The collapse also caused a short circuit in an electric pole nearby which set the victims' belongings on fire.
A joint team of fire department, police, National Disaster Response Force (NDRF) and National Disaster Management Authority (NDMA) carried out the rescue operations in the right earnest. Nobody was found trapped in the rubble.
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The building was found to be at least 20 years old.
Police said either the faulty design of the house or the dilapidated condition of the building caused the collapse.
Two other buildings also suffered damage due the collapse, they said.