Hotel Apartments in Islamabad – Emerging Horizons of Real Estate
Islamabad, the capital city of Pakistan, is nestled against the backdrop of the Margalla Hills. It is a modern, meticulously planned city known for its lush greenery, serene environment, and high standards of living. The city is home to several significant landmarks, including the Faisal Mosque, Pakistan Monument, Daman-e-Koh, and the Centaurus Mall (Blue Area) among many others. With its blend of natural beauty and urban sophistication, Islamabad has also become a prime destination for hotel apartments in Islamabad, offering both residents and investors an attractive lifestyle and investment opportunity in the heart of the capital.
Islamabad is characterized by its organized sectors, wide avenues, and a peaceful atmosphere that stands in contrast to the bustling nature of many other major South Asian cities. Being a Capital city, Islamabad serves as the political, administrative, and diplomatic hub of Pakistan; and as such, it hosts more than 70 foreign diplomatic missions that include embassies, high commissions, and consulates. E-7 Sector, F-6 Sector, and F-7 Sector are usually seen as epitome of real estate development in Islamabad. Kohsar Market, Beverly Centre, Jinnah Super Market are among the most mature commercial areas in these sectors.
In addition to these prime areas, the growing demand for hotel apartments in Islamabad is reshaping the city’s modern real estate landscape, attracting both investors and residents.
What’s happening in Islamabad’s Real Estate:
In the last decade, real estate market in and around Islamabad has experienced a massive boom, transitioning from a city with confined sectors to a sprawling metropolis. This expansion has been largely driven by major infrastructural developments like New Islamabad International Airport, and better road connectivity. The dynamics of this growth are best understood by examining the key corridors and the societies that have flourished along them.
The eastern and southeastern parts of Islamabad have witnessed the most significant and well-established real estate expansion. This growth is directly linked to the Islamabad Expressway and the Grand Trunk (GT) Road. These two major arteries connect Islamabad to Rawalpindi and other cities, creating a continuous urban corridor. Prestigious and large-scale developments like DHA Islamabad, Bahria Town, Park View City and Gulberg Greens are quite notable ones in this area. Although the real estate sector is witnessing consistent gains in-general, but newer high-rise projects offering premium and luxury lifestyle are in high demand in these areas. Among these developments, hotel apartments in Islamabad are emerging as a top choice for investors and residents seeking a blend of modern living and long-term value.
More recent, but equally rapid, development and expansion is witnessed in the western part of Islamabad and its surroundings. This growth is inextricably linked to the M-2 Motorway (Lahore-Islamabad Motorway), CPEC Corridors and the new Islamabad International Airport. The construction of the airport and new motorway interchanges has made this area highly accessible and a new frontier for real estate development in Islamabad and its surroundings. Major emerging developments include Capital Smart City, Top City-1, and Faisal Town.
Looking forward, the ongoing Rawalpindi Ring Road project is set to be the next major catalyst for real estate expansion in Islamabad. This road is designed to bypass the congested city centers and connect major highways, including the GT Road, M-1, and M-2 Motorway. With these transformative projects, demand for hotel apartments in Islamabad is also rising, offering lucrative opportunities for investors in this rapidly expanding region.
Ever Increasing Demand of Luxury Serviced and Hotel Apartments in Islamabad:
The demand for serviced apartments in Islamabad and hotel apartments in Islamabad has been steadily increasing, driven by a combination of factors. This growth has attracted significant investment in recent years, and is reshaping the city’s hospitality landscape. Here are some key pointers on this trend:
Business and Diplomatic Hub:
As the capital, Islamabad is a major center for government, business, and diplomatic activity. This generates a continuous stream of business travelers, foreign delegates, diplomats, and expatriates who require high-quality, secure, and flexible accommodation options for extended stays.
Increased Domestic and International Tourism:
Pakistan’s tourism sector has been experiencing a boom, particularly in the northern areas. Islamabad often serves as the gateway to northern regions, making it a crucial stopover point for tourists. Furthermore, the city’s own attractions, such as the Margalla Hills and historical sites, draw a large number of visitors. In line with this rising influx of travelers, the demand for hotel apartments in Islamabad has surged, providing both comfort for tourists and solid investment opportunities.
Technological Integration and Amenities:
The demand is for accommodations that are not only comfortable but also technologically advanced. Serviced apartments and modern hotel apartments in Islamabad are increasingly offering amenities like high-speed Wi-Fi, smart security systems, fitness centers, and co-working spaces to cater to the needs of the modern traveler.
Shift in Real Estate Investor Interest:
There is a notable shift in investor interest from traditional real estate (plots and files) to income-generating properties like serviced apartments and hotel apartments in Islamabad. These properties offer the potential for steady rental income and capital appreciation.
New Projects and International Brands:
The growing demand has attracted both local and international developers. New projects are being launched that specifically cater to this market, often in partnership with well-known hospitality brands. Examples include premium hotel apartments in Islamabad projects like Raddison Blu, Signature Rotana, and Golden Tulip Islamabad in TopCity-1, while Giga Mall Extension Hotel Apartments in DHA Phase-2 and Green World Towers (GWT) in Gulberg Greens are prominent among luxury serviced apartments projects in Islamabad.
Supply and Demand Gap:
Despite the new projects, there is still a significant gap between the supply of high-quality serviced apartments and hotel apartments in Islamabad and the ever-increasing demand. This is particularly true for high-end accommodations, which is a major driver for new developments.
A 2025 report from Pakistan Today estimated that Islamabad has approximately 4,000 hotel rooms available per night, while the demand is for over 8,000 rooms. This suggests a supply gap of at least 4,000 rooms, or a deficit of 50%.
The city has only a few five-star hotels and a limited number of four and five-star accommodations. Only worthwhile options include Serena Hotel, Marriott Hotel, Move n Pick, and Ramada; together offering less than 1200 rooms. Interestingly, all these options are within only Central Areas of Islamabad, leaving a huge gap of premium hospitality options in peripheral areas of Islamabad for tourists who frequently opt for Islamabad as gateway to Northern Areas.
Key Locations for making Real Estate Investments in Islamabad:
Western Periphery: The area around the New Islamabad International Airport, and the M-2 Motorway is a prime location for new projects, as it caters to both international travelers and business professionals. Societies like TopCity-1 along the Srinagar Highway are becoming hubs for these developments. The CPEC routes are also playing pivotal role in ever increasing demand of real estate, including demand for premium international hospitality options. J7 Group is a prime example among the real estate developers in this zone who is majorly focusing on bringing International Hotel Chains (e.g. Golden Tulip Hotel) in this zone. In this backdrop, hotel apartments in Islamabad near the airport corridor are emerging as a natural extension of these hospitality-driven developments, serving both frequent flyers and investors looking for strategic proximity.
Central Sectors and Commercial Areas: Established areas like the Diplomatic Enclave, Blue Area, and sectors F-6 and F-7 remain popular for their central location and proximity to business and tourist sites.
Southeastern Corridor: Developments along the Islamabad Expressway and in DHA continue to be attractive for their modern infrastructure and accessibility, making them ideal for both residential and short-term rental purposes.
Bottom-line for Prospecting Investors in Islamabad:
While Islamabad is a hub for business, diplomacy, and a gateway to Pakistan’s growing tourism, its existing hotel infrastructure, especially for high-end accommodations, is insufficient. This has resulted in high occupancy rates and rising room prices, creating a lucrative environment for new developments. Locations such as Top City-1, strategically situated near the new Islamabad International Airport, are particularly attractive.
Due to sharp rise in demand of luxury serviced apartments, investors can explore options in areas like Gulberg Greens Islamabad. It stands out as a luxurious, well-planned society that combines a serene, green environment with modern amenities and robust security. Its strategic location on the Islamabad Expressway provides excellent connectivity, making it an ideal choice for both high-end residential living and a growing number of corporate offices, like Telenor Pakistan and Teradata Global.
Imlaak is here to help you make right decisions:
Imlaak is excited to inform its valuable investors that we have expanded to Islamabad in 2025. We at Imlaak, are only a call away to provide you with our trusted and exceptional consultancy/ asset management services.
Muhammad Ahmad
Chief Business Officer at Imlaak
- Mobile: +92 300 204 9988 (WhatsApp)