Rental Yields 2025: Best Areas in Lahore, Karachi & Islamabad for 8%+ ROI — A Guide for Overseas Pakistanis
Rental yields in Pakistan 2025 range from 5% in Clifton to 8.7% in Bahria Town Phase 8. If you’re an overseas Pakistani searching for passive income above 8%, this data-backed guide covers the best areas to invest in Lahore, Karachi, Islamabad, and Rawalpindi — complete with expert insights and market trends.
Lahore mein rental income ka acha moka chahte hain? Karachi aur Islamabad ke top areas janiye jo 2025 mein behtareen returns de rahe hain.
Rental Yield Data Table (June 2025)
| City | Area | Property Type | Avg. Price (PKR) | Monthly Rent (PKR) | Estimated Yield (%) | Furnished / Long-Term | Data Source & Notes |
|---|---|---|---|---|---|---|---|
| Lahore | Gulberg | Studio | 10M | 68,000–74,000 | 7.8% | Mostly furnished, short-term Airbnb | IQI Pakistan, Imlaak* |
| Rawalpindi | Bahria Town Phase 8 | 2-Bed Apartment | 12M | 80,000–85,000 | 7.1% | Long-term | Global Property Guide, Local Agents |
| Islamabad | F-11 | Furnished Apartment | 18M | 120,000 | 8.0% | Furnished, short & long-term mix | IQI Pakistan Market Report |
| Lahore | DHA Phase 6 | 2-Bed Apartment | 16M | 97,000 | 7.2% | Long-term | Global Property Guide |
| Karachi | DHA Phase VIII | 1-Bed Apartment | 14M | 82,000 | 7.0% | Long-term | Global Property Guide |
| Karachi | Clifton | 3-Bed Apartment | 22M | 110,000 | 6.0% | Long-term, less furnishing | Imlaak & Local Brokers |
Note: Rental yields vary by furnishing status and tenancy type. For example, Bahria Town Phase 8’s highest yields are from furnished short-term rentals; long-term yields are generally around 7.1%.
Top 5 Areas with 7%+ Rental Yields in Pakistan 2025
- F-11 Furnished Flats, Islamabad (8.0%)
- Gulberg Studios, Lahore (7.8%, furnished Airbnb style)
- DHA Phase 6, Lahore (7.2%)
- DHA Phase VIII, Karachi (7.0%)
- Bahria Town Phase 8, Rawalpindi (~7.1% long-term; 8.7% furnished short-term)
“Yeh areas 2025 mein best rental income dete hain, khas tor pe agar aap furnished ya short-term rental ka plan bana rahe hain.”
Location Deep Dive: Where to Invest in 2025
Lahore
“Lahore mein rental investment karna hai? Gulberg studios aur DHA Phase 6 sab se popular hain.”
- Gulberg studios have high short-term rental demand, especially from students and professionals looking for furnished spaces.
- DHA Phase 6 appeals to long-term tenants like corporate employees and families due to its amenities and secure environment.
Karachi
“Karachi mein best returns chahiye? DHA Phase VIII aur Clifton pe focus karein.”
- DHA Phase VIII offers good tenant demand with a balance of yield and occupancy.
- Clifton is known for capital appreciation but slightly lower rental yields compared to DHA.
Islamabad & Rawalpindi
“Islamabad aur Rawalpindi mein F-11 aur Bahria Town Phase 8 ka jawab nahi.”
- Islamabad’s F-11 furnished apartments attract expats and diplomats, pushing yields up to 8%.
- Bahria Town Phase 8 in Rawalpindi is becoming a hotspot for long-term rental income with strong community development.
Hidden Costs to Consider
- Maintenance Fees: Society charges, repair costs can affect net yield.
- Taxes: Rental income above PKR 600,000 annually is taxable (see tax section below).
- Vacancy & Turnover: Short-term rentals may have higher vacancy rates and tenant turnover.
- Utilities & Services: Sometimes paid by landlords; include in your ROI calculations.
Short-Term vs Long-Term Rental: Pros & Cons
| Feature | Short-Term (Furnished/Airbnb) | Long-Term (11-Month Lease) |
|---|---|---|
| Rental Yield | Higher (7–8.5%) | Stable (~6.5–7%) |
| Vacancy Rate | Medium-High | Low |
| Maintenance Cost | Higher | Lower |
| Ideal Locations | Gulberg, F-11, Bahria Town | DHA, Clifton |
How to List Property for Rent Without an Agent (5 Easy Steps)
- Visit properties.therentalbazaar.com
- Sign up or log in
- Click Add Listing
- Enter details and upload photos
- Publish and share your listing!
🟢 No documents required — list in under 5 minutes!
TRB does not verify listings; please perform your own due diligence.
Important Legal & Tax Disclaimer
Rental income is subject to tax under Pakistan’s Income Tax Ordinance. As per Finance Act 2025, rental income above PKR 600,000 per year is taxable with rates from 5% to 15% depending on slabs.
Always consult a licensed tax advisor or real estate lawyer before investing or finalizing agreements.
TRB disclaims responsibility for user listings or transactions.
Frequently Asked Questions (FAQ)
Do I have to pay tax on rental income in Pakistan?
Yes. As of Finance Act 2025, rental income above PKR 600,000 per year is taxable. The tax rates range from 5% to 15% depending on your income slab. It’s best to consult a qualified tax advisor to understand your exact obligations.
Are short-term rentals allowed in DHA and Bahria Town societies?
Policies differ by society. Some may restrict short-term or Airbnb-style rentals. Always check the specific society’s bylaws or contact management before listing your property for short-term rent.
What documents do I need to list my property for rent on TRB?
No documents are required to list your property on TRB. You can add your listing within minutes by providing property details and photos. However, it’s recommended to keep your rental agreement and ownership documents handy for tenant verification and legal safety.
How can I promote my rental listing effectively?
Share your TRB listing link on WhatsApp groups, Facebook, and local community forums. Use clear, high-quality photos and write accurate descriptions in both English and Roman Urdu to reach a wider audience.
Is it better to rent furnished or unfurnished in Pakistan?
Furnished rentals often yield higher monthly rent, especially for short-term tenants or professionals. However, unfurnished properties tend to have lower vacancy rates and maintenance costs. Choose based on your target tenant profile and area demand.
Helpful Links
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Did You Know? TRB Isn’t Just for Property Rentals
The Rental Bazaar (TRB) is Pakistan’s first C2C rental marketplace where anyone can list anything for rent — not just houses or apartments. Whether you have a car, bridal dress, camera, generator, or catering service, TRB makes it easy to reach thousands of local renters.
No commission, no middleman — and no listing verification by TRB. All users are responsible for their own listings and deals.
Important: TRB does not verify listings. Please conduct your own due diligence before renting or signing any agreements.
Roman Urdu Line:
“Car se lehenga tak — har cheez ab kiraye par dein TRB pe. Lekin khud verify karna zaroori hai.”
