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Contents

  1. (Top)
  2. 1. Key Numbers
  3. 2. Macroeconomic Drivers
  4. 3. Rental Trends by City
  5. 4. Rental Price Comparison Table 2026
  6. 5. Tenant Rights in Pakistan
  7. 6. Landlord Responsibilities
  8. 7. Property Management Tips
  9. 8. ROI on Rental Properties
  10. 9. Emerging Rental Trends
  11. 10. Pre-Letting Checklist
  12. 11. Frequently Asked Questions

Guide

Pakistan Rental Market Analysis 2026: City-Wise Trends, Tenant Rights, Property Management & ROI Guide

Pakistan Rental Market Analysis 2026: City-Wise Trends, Tenant Rights, Property Management & ROI Guide
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By Muhammad Yasir

Real Estate Analyst

20 June 2026Updated 21 June 202620 min read

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At a Glance: Pakistan faces a 10M+ housing shortage and mortgage penetration below 0.5%, making renting a long-term reality. Rents are rising by around 10% annually, with housing inflation reaching 11.5%. Islamabad has one of Pakistan’s tightest rental markets, while Rawalpindi offers lower costs with easy commuting. Commercial properties in Karachi offer some of the country’s strongest rental yields. Pakistan’s average gross rental yield is about 6.2%, remaining attractive compared to many global cities. Furnished properties can earn 25–35% higher rents than unfurnished units. Annual rent escalation clauses are essential to protect rental income. Tenants cannot be evicted without legal process through the Rent Controller. Landlords should use written agreements, maintain properties, and provide proper notice for rent increases. Thorough tenant screening and minimizing vacancies are critical for maximizing returns. Bank transfers provide a clear payment record and reduce future disputes. Rental income may be taxable, making proper documentation and tax compliance important.

1. Key Numbers

Pakistan has a 10-million-unit housing shortage, a sub-0.5% mortgage-to-GDP ratio, and an urban population growing at 3% per year. For most of the urban workforce, renting is not a transitional phase — it is permanent. The PSLM survey puts 13.4% of all households in rented accommodation nationally, rising sharply inside Islamabad, Lahore, and Karachi's commercial zones.

MetricFigureSource
Annual rental escalation (major cities)~10% YoYSavills Pakistan, 2026
Housing and utility inflation (March 2026)11.5%Savills Pakistan
Pakistan average gross residential yield~6.24%Global Property Guide, Q1 2025
Prime commercial yield (Karachi / Lahore)10–15%Market data, 2026
London gross yield (reference)~4.3%Global Property Guide
New York gross yield (reference)~4.9%Global Property Guide

Pakistan's rental market delivers structurally higher yields than comparable developed-market assets — but with higher management and legal complexity that must be priced into every net return calculation.

Search verified rental listings across Pakistan on Milkiyat.com.


2. Macroeconomic Drivers

The SBP policy rate declined from 22% to below 13% between 2024 and early 2026, while CPI inflation cooled from a peak of 38% — both forces reshaping rental demand and investment returns.

Remittances. Inward remittances rose over 31% YoY in 2025–26. A disproportionate share flows into real estate: overseas Pakistanis buy units in DHA, Bahria Town, and Capital Smart City and immediately list them for rent, feeding premium supply while generating rupee passive income.

Pakistan’s record remittances in 2025–26 have channelled a growing share of overseas capital into the rental property sector. Pakistan received recor

Infrastructure as a yield catalyst. Infrastructure lifts adjacent rents with a 6–18 month lag:

  • Rawalpindi Ring Road → re-rated values across Bahria Town Phase 8
  • Lahore Orange Line Metro → 8–12% premium within 500m of stations
  • Karachi M9 Motorway → growing suburban rental demand on the Karachi–Hyderabad axis

Inflation. At 10% annual rental escalation, a landlord without an escalation clause in their agreement erodes real yield every year. A 10–12% annual escalation clause is effectively inflation-indexed protection.


3. Rental Trends by City

Islamabad’s planned grid layout, green environment, and proximity to the Margalla Hills make it Pakistan’s most stable and premium rental market.

Islamabad and Rawalpindi

Islamabad is Pakistan's lowest-vacancy, most stable rental market. Tenant base: diplomats, expatriates, senior civil servants, MNC staff, and IT professionals — high-income, long-tenure renters. Vacancy in F-10, F-11, G-11, and DHA is typically under three weeks.

Market tiers:

  • Diplomatic / premium (E-7, F-6, DHA Phase 2 villas): PKR 3,00,000–6,00,000/month. Low volume, very high unit value.
  • Mid-market (G-11, G-13, I-8): PKR 40,000–80,000/month. Highest volume, fastest absorption.
  • Gated community (DHA Islamabad, Bahria Enclave): PKR 60,000–1,50,000/month. Preferred by overseas investors managing remotely.

Islamabad 2-bed apartment benchmarks (June 2026):

ZoneUnfurnished (PKR/month)Furnished (PKR/month)Vacancy
E-7 / F-680,000–1,50,0001,20,000–2,50,000Under 2 weeks
F-10 / F-1155,000–90,00075,000–1,20,0002–3 weeks
G-11 / G-1340,000–65,00055,000–85,0002–4 weeks
I-8 / I-1035,000–55,00048,000–70,0003–4 weeks
DHA Islamabad60,000–1,00,00080,000–1,30,0002–3 weeks
Bahria Enclave50,000–80,00065,000–1,00,0003–4 weeks

Furnishing cost for a 2-bed (beds, sofas, appliances, 2 ACs, washing machine, water heater): PKR 8,00,000–12,00,000. The 25–35% furnished premium recovers this in 50–60 months.

Rawalpindi absorbs Islamabad's rental overflow. As Islamabad rents escalate ~10% annually, mid-income renters relocate to Rawalpindi — 30–40% cheaper with a 30–45 minute commute.

Rawalpindi ZoneTenant Profile2-Bed Rent (PKR/month)
Bahria Town Ph 7–8Mixed families, professionals25,000–45,000
DHA Ph 1–6Defence personnel, executives35,000–60,000
Chaklala Scheme 3GHQ-adjacent employees22,000–40,000
Satellite TownBudget renters, traders18,000–32,000

Islamabad and Rawalpindi rental listings: Milkiyat.com


Lahore

Lahore’s Orange Line Metro and diverse economic base produce the broadest and most liquid rental tenant pool in Pakistan.

Lahore is Pakistan's most liquid property market. Tenant diversity — students, IT engineers, textile executives, pharmaceutical staff, multigenerational families — means demand holds across economic cycles. City-centre rentals grew 8% YoY in 2024–25. The Orange Line Metro created an 8–12% micro-premium within 500m of stations. The Arfa Software Technology Park and Gulberg tech corridor are generating a new sub-segment of IT professionals who pay above-market rent for quality 1–2 bed apartments with fibre internet near their offices.

Lahore benchmarks by zone (June 2026):

Zone2-Bed Unfurnished2-Bed Furnished5-Marla House
DHA Phases 5–950,000–80,00070,000–1,10,00070,000–1,10,000
Gulberg I / II / III55,000–90,00075,000–1,20,00080,000–1,40,000
Bahria Town Lahore35,000–60,00048,000–80,00045,000–75,000
Johar Town28,000–50,00038,000–65,00040,000–65,000
Model Town30,000–50,00040,000–65,00045,000–70,000
Wapda Town22,000–38,00030,000–50,00035,000–55,000

All figures PKR/month. Investor shortcut by budget:

  • PKR 80–100 lakh → Bahria Town Lahore: best yield-to-entry-price, large tenant pool
  • PKR 1.5–2.5 crore → DHA Phases 5–9: strongest resale liquidity, highest tenant quality
  • Student-housing focus → Johar Town: two major universities, year-round demand; use 10-month academic tenancy model

Karachi

Karachi’s unmatched employment density and coastal premium zones drive consistent demand across all rental price points.

Karachi holds Pakistan's highest commercial yields: 10–15% gross in PECHS and DHA commercial zones. Residential demand is structural — employment density across corporate HQs, the port, industrial zones, and financial institutions keeps occupancy above 90% in established zones.

Critical Karachi dynamic: Weak public transport means employer proximity commands a 15–25% premium over comparable units further away. Factor commute distance into every purchase decision.

Karachi 2-bed apartment benchmarks (June 2026):

ZoneUnfurnished (PKR/month)Furnished (PKR/month)
DHA Phases 5–840,000–75,00060,000–1,10,000
Clifton / Bath Island50,000–90,00070,000–1,30,000
PECHS / Gulshan-e-Iqbal28,000–55,00040,000–70,000
Bahria Town Karachi30,000–55,00042,000–70,000
Scheme 33 / Malir Cantonment20,000–38,00028,000–50,000

DHA 2-bed residential yield is ~4.7% gross — lower than Islamabad and Lahore because purchase prices in DHA Karachi are disproportionately high relative to achievable rents. The city's real investment case is commercial.

Lahore and Karachi listings: Milkiyat.com


4. Rental Price Comparison Table 2026

Average monthly rents across five major Pakistani cities by property type. Islamabad commands the highest rents; Faisalabad offers the most affordable entry point.
CityStudio / 1-Bed2-Bed Apt3-Bed Apt5-Marla House10-Marla HouseAnnual Escalation
Islamabad20,000–35,00040,000–80,00060,000–1,20,00070,000–1,40,0001,20,000–2,50,000~10%
Rawalpindi12,000–22,00025,000–50,00040,000–70,00045,000–80,00080,000–1,40,000~8%
Lahore15,000–28,00035,000–65,00045,000–80,00050,000–90,00090,000–1,60,000~10%
Karachi18,000–32,00035,000–70,00050,000–1,00,00055,000–1,00,0001,00,000–1,80,000~10%
Faisalabad8,000–15,00018,000–35,00025,000–50,00028,000–55,00050,000–90,000~6–7%
Annual rental escalation is running at 10% in Islamabad, Lahore, and Karachi — landlords without escalation clauses are losing real income each year.

PKR/month. Standard localities. Gated communities and furnished units add 20–40%. Source: Savills Pakistan, Zameen.com, Graana.com, Milkiyat.com, June 2026.


5. Tenant Rights in Pakistan

A formally drafted, stamped, and registered tenancy agreement is the cornerstone of legal protection for both tenants and landlords in Pakistan.

Rental law is provincial, not national. Each province has its own Rent Control Act, administered through a Rent Controller — a judicial officer who hears eviction petitions, rent fixation applications, and deposit disputes.

Province / TerritoryGoverning Law
Islamabad (Federal)Islamabad Rent Restriction Ordinance
Punjab (Lahore, Rawalpindi, Faisalabad)Punjab Rented Premises Act 2009
Sindh (Karachi, Hyderabad)Sindh Rented Premises Ordinance 1979
KPK (Peshawar)KPK Rented Premises Act
BalochistanBalochistan Rented Premises Ordinance

National foundation: Transfer of Property Act 1882.

Lease vs. Licence

  • Lease: Transfers exclusive possession. Landlord cannot enter without notice. Tenant has stronger Rent Controller standing.
  • Licence: Grants occupancy only; no transfer of possession. Occupant has weaker protections.

The landlord is legally responsible for registering the agreement. An unregistered agreement weakens the landlord's case, not the tenant's.

Core Rights

Fair rent. All provincial acts restrict mid-tenancy increases. If a tenant considers an increase unreasonable, they file a rent fixation application at the Rent Controller. Under Punjab Rented Premises Act 2009, increases imposed without the tenant's written consent are challengeable and reversible.

Habitable property. Landlords must maintain structural integrity, plumbing, electrical safety, and common areas. This duty is active — it does not wait for a tenant complaint.

Privacy. Landlord cannot enter without 24–48 hours' notice (except genuine emergency), cut utilities, or obstruct lawful use. All three acts are explicitly unlawful under every provincial ordinance.

Eviction due process. Lawful grounds: non-payment, material lease breach, or illegal activity. Even with grounds, a formal Rent Controller eviction order is required. Self-help eviction (changed locks, removed belongings, utility disconnection) entitles the tenant to an emergency injunction and financial damages.

Security deposit. Capped at 1–3 months' rent. Must be returned within 7–14 days of handover, minus documented deductions for damage beyond normal wear and tear.

Tenant Obligations

  • Pay rent on time; bear repair costs for own negligence
  • No subletting without written landlord consent
  • Written permission required before structural alterations
  • Give contractually specified written notice before vacating

IIPS tenancy rights guide | Pakistan Law Bot


6. Landlord Responsibilities

ObligationLegal StandardConsequence of Breach
Maintain habitable conditionActive duty — cannot wait for complaintRent Controller complaint; rent withholding
Register the tenancy agreementLandlord's responsibility, not tenant'sUnregistered agreement may be inadmissible as evidence
Issue rent receiptsMandatory (weekly); essential (monthly)Cannot disprove tenant's claim of payment
Return security depositWithin 7–14 days; documented deductions onlyRent Controller deposit recovery claim
Rent increase process30–60 days' written notice; compliant with agreement; no mid-tenancy impositionRent Controller challenge; increase reversed
Respect tenant privacy24–48 hours' notice before entry; no utility cuts; no obstructionEmergency injunction; financial damages to tenant

Practical compliance minimums:

  • Lawyer-drafted, stamp-paper-executed, registered agreement for all tenancies above PKR 50,000/month
  • Timestamped photographs of every room at every tenancy transition, both parties present
  • Tenant CNICs registered with local police station (legal requirement in most Pakistani cities)
  • All material notices — rent increases, inspections, termination — issued in writing

Mughal Barristers rental law overview


7. Property Management Tips

Digital property management platforms are transforming how landlords track rent collection, maintenance requests, and occupancy across multiple units.

Tip 1: Price to Market

One month's vacancy at PKR 80,000 = PKR 80,000 lost. A PKR 5,000/month reduction across a full year = PKR 60,000 lost. Overpricing always costs more. Check active comparables on Milkiyat.com — same sector, same size, same furnishing status. Include a 10–12% annual escalation clause from day one.

Tip 2: Screen Tenants Before Signing

A contested tenancy (Rent Controller fees, legal costs, vacancy during proceedings) routinely erases 12–18 months of income. Before signing, verify:

  • CNIC copies of all adult occupants
  • Salary slip, bank statement, or business registration
  • Previous landlord reference — call directly, not via screenshot
  • Intended occupancy count and use (residential vs. commercial)

Tip 3: Use a Registered Agreement

Verbal agreements have no Rent Controller standing. The written, stamp-paper agreement must specify: rent in words and figures, payment date and method, security deposit and deduction conditions, lease dates, notice period, maximum occupancy, utility responsibility, maintenance split (landlord: structural; tenant: consumables and negligence damage), and annual escalation mechanism. Register with the Sub-Registrar or Rent Controller.

Tip 4: Joint Move-In and Move-Out Inspection

Photograph every wall, fitting, appliance, and door with timestamps on possession day. Both parties sign a written inventory. Repeat on the final day. Security deposit disputes are resolved — or made inarguable — by this document alone.

Tip 5: Maintain Proactively

A PKR 2,000 drain tile fix in Year 1 becomes a PKR 50,000 waterproofing job in Year 3.

ItemFrequencyCost (PKR)
Pre-monsoon roof and drainage inspectionAnnual (May)3,000–8,000
AC service — 2 unitsAnnual (April)4,000–8,000
Plumbing checkAnnual3,000–10,000
Electrical safety inspectionEvery 2 years5,000–12,000
Water heater service / replacementEvery 3–5 years8,000–25,000
Painting and touch-upEvery 2–3 years20,000–50,000
Annual reserve (1% of PKR 60 lakh property)PKR 60,000

Tip 6: Collect Rent Digitally

Specify in the agreement: rent due by the 5th of each month via bank transfer to a named account. JazzCash, Easypaisa, and standard bank transfers produce timestamped records. Include a PKR 500–1,000/week late fee beyond a five-day grace period.

Tip 7: File Rental Income Tax

Under Finance Act 2025: income above PKR 600,000/year (PKR 50,000/month) is taxable at 5–15% by slab. Deductibles: maintenance, management fees, property taxes, insurance. Tax reduces gross yield by 1–2 percentage points. Register with FBR; file annually; engage a chartered accountant for multiple units.

Tip 8: Use Professional Management for Remote or Multi-Unit Portfolios

Fee: 5–10% of monthly rent + one month's rent letting fee. Services: tenant screening, lease registration, rent collection, maintenance coordination, utility monitoring, inspection reports. For overseas Pakistanis, the cost is recovered through reduced vacancy periods alone. For local investors with 3+ units, the time saving justifies the fee.


8. ROI on Rental Properties

Gross vs. Net Yield

Gross yield = (Annual Rent ÷ Purchase Price) × 100

Net yield deducts:

CostTypical Range
Annual maintenance1–1.5% of property value
Property tax / local charges (CDA, RDA, LDA, KMC)Varies
Rental income tax (Finance Act 2025)5–15% above PKR 600,000/year
Property management fee5–10% of rent
Vacancy provision2–6 weeks of rent per year

Net yield runs 1.5–2 percentage points below gross.

Worked example — Islamabad G-11, 2-bed furnished apartment:

ItemFigure
Purchase pricePKR 1,20,00,000
Monthly rent (furnished)PKR 55,000
Annual rentPKR 6,60,000
Gross yield5.5%
Annual costs (maintenance PKR 72,000 + tax PKR 18,000 + 3-week vacancy PKR 31,800)PKR 1,21,800
Net annual incomePKR 5,38,200
Net yield~4.5%
10% capital appreciationPKR 12,00,000
Combined Year 1 total return~PKR 17,38,200 (~14.5%)

City-Wise Yield and Investment Decision Matrix

City / ZoneProperty TypeGross YieldNet YieldBest For
Islamabad F-10 / F-11Residential apartment6–8%4.5–6%Conservative investors; overseas Pakistanis
Islamabad DHA / Bahria TownHouse5–7%3.5–5.5%Long-term holders; retirement assets
Islamabad E-7 / F-6Premium villa4–6%3–5%High-capital; diplomatic-tenant strategy
Lahore Gulberg2-bed apartmentUp to 8%6–6.5%Income-maximisers; active managers
Lahore DHA Ph 5–9Residential5–7%4–5.5%Balanced yield + appreciation
Lahore Bahria TownMid-market residential5.5–7.5%4–6%Entry-level investors; PKR 80–100 lakh budget
Karachi DHA / CliftonResidential apartment4.7–6%3–4.5%Resale liquidity priority
Karachi PECHS / DHACommercial unit10–15%8–12%Commercial income investors
Rawalpindi Bahria Ph 8 / DHAResidential5–7%3.5–5.5%Value investors; Islamabad employment base
Pakistan average (residential)Mixed~6.24%~4.5%Benchmark

Source: Global Property Guide Q1 2025, Goldcrest Views Pakistan, imlaak.com, Milkiyat.com, June 2026.

Short-Term vs. Long-Term Rental

ModelGross YieldManagementVacancy Risk
Long-term lease (12+ months)4–6%LowLow
Short-term / serviced (monthly / weekly)6–9% effectiveHighModerate–high
Co-living (per-room model)7–10% house-levelVery highLow per room

Short-term income runs 30–50% above long-term monthly rent — but furnishing, housekeeping, management, and turnover costs substantially narrow the net advantage. Viable only in proven corporate-traveller zones (F-10/F-11 Islamabad, Gulberg Lahore, DHA Karachi) with professional management in place.

Five ROI Principles

  1. Combine yield and appreciation. DHA Islamabad yielded 5–7% while appreciating 12–18% annually over five years. Both numbers compound.
  2. Buy where tenants already exist. Employment hubs generate daily rental demand. Emerging land does not.
  3. Legal clarity is a yield variable. Title ambiguity and disputed NOC are never adequately priced into the purchase price.
  4. Vacancy is the biggest yield killer. One month at PKR 70,000 = 8.3% of annual income gone.
  5. Escalation clauses are non-negotiable. No clause on a PKR 60,000/month rent over 3 years = approximately PKR 198,000 in cumulative income forfeited vs. a 10% annual increase.

Dawn Business | ProPakistani Real Estate


9. Emerging Rental Trends

Co-living. A 5-bed house at PKR 65,000/month as a single-family tenancy earns PKR 90,000/month rented per room at PKR 18,000 — a 38% gross revenue uplift. Growing in Lahore (Johar Town, Gulberg, Model Town) and Islamabad (I-8, G-9, G-10). Trade-off: individual agreements per room, more disputes, higher turnover. Requires local, direct management or a dedicated co-living operator.

Serviced apartments. Fully furnished, utility-included, housekeeping-enabled units rented monthly to corporate clients command 40–60% premiums over standard furnished rents. A furnished F-10 Islamabad apartment at PKR 90,000/month standard may achieve PKR 1,30,000–1,50,000/month as a managed serviced unit. This is hospitality management, not passive landlording — only viable with professional management in place.

PropTech. Milkiyat.com, Zameen.com, and Graana.com host hundreds of thousands of active listings. Price transparency means overpricing by 10% reduces inquiry volume by an estimated 70–80%. Digital rent collection (JazzCash, bank transfers) and online agreement generators are reducing the informal cash-and-verbal-agreement model across mid-market Pakistan.

The furnished premium. Furnishing a 2-bed to mid-range standard costs PKR 8,00,000–12,00,000. The 25–35% rental premium recovers this in 50–60 months while reducing vacancy periods. For overseas investors managing remotely, a managed furnished unit is materially easier to rent at a premium than a bare-shell property.


10. Pre-Letting Checklist

Pre-Purchase

  • Verify title chain via property lawyer (7-year minimum)
  • Confirm NOC / LOP with CDA, RDA, LDA, DHA, or relevant authority
  • Check for encumbrances, mortgages, or active litigation
  • Model gross yield, net yield, and vacancy-adjusted annual income before buying

Pre-Listing

  • Complete all repairs before listing
  • Decide furnished vs. unfurnished; price against current Milkiyat.com comparables — not last year's rates
  • Have a lawyer draft a stamp-paper tenancy agreement
  • Photograph every room and fitting; prepare signed move-in inventory
  • Settle all outstanding utility bills; confirm meter readings

Tenant Onboarding

  • Collect CNIC copies of all adult occupants
  • Verify income documentation; call previous landlord directly
  • Execute stamped agreement with two witnesses; issue security deposit receipt
  • Register tenant CNICs with local police station
  • Register tenancy agreement with Sub-Registrar or Rent Controller
  • Conduct joint move-in inspection; both parties sign inventory

Ongoing Management

  • Collect rent via bank transfer; issue receipts
  • Annual pre-monsoon inspection (May; 48-hour notice to tenant)
  • Maintain 1–1.5% of property value per year as maintenance reserve
  • File FBR annual return (mandatory above PKR 600,000/year rental income)
  • Review market rents 60–90 days before renewal; issue written increase notice 30+ days before new lease period

End of Tenancy

  • Issue renewal offer or notice to vacate 30–60 days before expiry
  • Joint move-out inspection against move-in inventory
  • Return deposit or documented deductions within 7–14 days of handover
  • Transfer or reset utility accounts

List your property on Milkiyat.com.


11. Frequently Asked Questions

Q1: What is the average rent for a 2-bedroom apartment in Islamabad in 2026?

Mid-market (G-11, G-13, I-8): PKR 40,000–65,000/month unfurnished. Premium (F-10, F-11, DHA): PKR 60,000–90,000/month unfurnished. Add 25–35% for furnished. Dedicated parking adds PKR 3,000–8,000/month where not included.


Q2: How much notice is required before a rent increase?

No single national standard. Safest legal position: 30–60 days' written notice before the new lease period. Under the Punjab Rented Premises Act 2009, mid-tenancy increases without the tenant's written consent are challengeable. Increases above 10–15% annually face Rent Controller scrutiny if contested.


Q3: Can a landlord forcibly evict a tenant in Pakistan?

No. Cutting utilities, changing locks without a court order, removing belongings, or physical intimidation is explicitly illegal under all provincial tenancy laws. The landlord must apply to the Rent Controller, prove just cause, and obtain a formal eviction order. Tenants can seek an emergency injunction and financial damages for unlawful conduct.


Q4: What is the standard security deposit?

2 months' rent is the most common standard; the legal range is 1–3 months. Return within 7–14 days of handover, net of documented deductions for damage beyond normal wear and tear. Issue a formal receipt on collection.


Q5: Is rental income taxable in Pakistan?

Yes. Under Finance Act 2025: income above PKR 600,000/year is taxable at 5–15% by income slab. Deductibles: maintenance, management fees, property taxes, insurance. File annually with FBR. Non-declaration carries surcharges and audit risk.


Q6: Which city offers the best rental ROI in 2026?

  • Lowest vacancy / best stability: Islamabad F-10 / F-11
  • Highest gross residential yield: Lahore Gulberg (up to 8%)
  • Highest commercial yield: Karachi PECHS / DHA commercial (10–15%)
  • Best entry-price-to-yield ratio: Rawalpindi (5–7% gross at 30–40% below Islamabad purchase prices)

Q7: Furnished or unfurnished — which is better for yield?

Furnished: 25–35% rental premium, faster letting, higher-income tenants. PKR 8,00,000–12,00,000 furnishing cost recovered in 50–60 months. Unfurnished: longer-tenure families, lower maintenance, simpler management. For overseas investors managing remotely, furnished is almost always the better model.


Q8: What documents are required for a valid tenancy agreement?

CNIC copies of landlord and all adult tenants; full property address and type; monthly rent in words and figures; payment date and method; security deposit terms; lease start and end dates; notice period; maximum occupancy; utility and maintenance split; annual escalation mechanism. Execute on stamp paper with two witnesses; register with Sub-Registrar or Rent Controller.


Q9: How do I calculate net rental yield?

[(Annual Rent − Annual Costs) ÷ Purchase Price] × 100

Example: PKR 1,20,00,000 property; PKR 55,000/month (PKR 6,60,000/year); PKR 1,21,800 costs. Net income = PKR 5,38,200. Net yield = 4.5%. Add 10% capital appreciation → combined Year 1 return ~14.5%.


Q10: What happens if a tenant refuses to vacate after lease expiry?

The tenant becomes a holdover tenant — a Rent Controller eviction order is still required. Issue written notice to vacate 30 days before expiry; do not accept rent after expiry (acceptance may create a new implied periodic tenancy). If the tenant remains, apply immediately to the Rent Controller.


Disclaimer: Rental figures, yield data, and legal summaries reflect market conditions and publicly available legislation as of June 2026 and are subject to change. This article is informational only — not legal, financial, or investment advice. Consult a qualified property lawyer, chartered accountant, or licensed real estate professional before making decisions specific to your situation.

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