Interest Rates Drop — Perfect Time to Invest in Property

Inflation Drops to 60-Year Low as Interest Rates Expected to Fall — A Golden Window for Real Estate Investment

March 2025 marks a historic economic milestone for Pakistan, with inflation falling to just 0.7%—the lowest level recorded in nearly six decades. This dramatic shift comes at a time when the country is witnessing broader macroeconomic stabilization, and experts now anticipate a further softening of interest rates, potentially dropping to 9% or even lower in the months ahead.

This dual improvement in inflation and borrowing costs is expected to provide a significant boost to Pakistan’s real estate sector, especially for buyers reliant on property financing. As the cost of capital decreases, developers and investors alike are likely to benefit from easier access to credit and reduced loan repayment burdens.

Perhaps most notably, this economic turn presents an exceptional opportunity for overseas Pakistanis. With the rupee stabilizing and purchasing power amplified through stronger currencies like the dollar or pound, expats now have access to more favorable entry points, allowing them to lock in prime real estate assets at attractive prices and capitalize on long-term capital appreciation and rental yields.

Real estate developers have already begun adjusting their financing options, offering flexible installment plans, discounts on upfront payments, and enhanced investment returns in response to the improving economic climate.

If this trajectory continues, 2025 could very well become a landmark year for Pakistan’s property market, revitalizing local investment and positioning the country as a regional hotspot for real estate growth.