The Future of Pakistan Real Estate in 2025: Analysis and Predictions
I hope you all have a fantastic new year, and I’m grateful for your continued support of Imlaak in 2024. Our objective in this Pakistan Real Estate in 2025 projection is to determine the general path of the country’s real estate market in the year ahead.. Our 2024 forecasts turned out to be remarkably accurate in predicting overall market trends, which is something we can all feel proud of as we move forward together.
For decades, Pakistanis worldwide have placed significant trust in real estate as a primary investment, and it has often yielded substantial returns. However, because real estate investing in Pakistan is evolving, our strategies must follow suit. This article will explore the most promising investment opportunities in Pakistan Real Estate in 2025.
Moreover, amid lower interest rates and growing investor confidence, we expect high-rise property prices to rise 30–40% over 2025 and 2026, making these projects particularly appealing.
Summary Round-Up of Pakistan Real Estate in 2024
The year 2024 has generally remained as predicted in our yearly analysis, with the plots and files sector continuing to suffer amid pressure from taxation and government policies. On the other hand, the construction and rental sector moved upward slowly yet steadily, even during times of crisis, demonstrating remarkable resilience. In our assessment, many plots and files have hit rock bottom, such as Phase 10 files and DHA Quetta files.
Despite ongoing challenges, 2024 also brought a more stable economy, beginning with a strong recovery in the stock market—which has now crossed 100k points—and, most notably, a significant drop in interest rates. This downward trajectory of interest rates is expected to persist into 2025, injecting new optimism into the market, albeit cautiously.
Overall, while plots and files remain under pressure, the construction and rental segments have shown their ability to weather economic storms. With the improved economy, reduced interest rates, and PKR’s relative stability, 2024 has set the stage for what we expect to be an eventful year for Pakistan Real Estate in 2025.
Forecast for Pakistan Real Estate in 2025
Heading into 2025, the interest rate has already dropped to around 12%, and some analysts anticipate it could reach 9% if the current trend continues. The PKR is generally stable against the dollar, and inflation appears to be under control—signs of a stabilizing economy in recovery mode.
As a result, Pakistan Real Estate in 2025 has arrived with a clear indication of an upside in the sector, and we expect more potentially good news—perhaps an amnesty or tax cut—from the government to encourage real estate investment. However, until any such amnesty or tax relief is officially announced, it is difficult to predict if plots and files will experience a significant rally or continue to struggle in Pakistan Real Estate in 2025.
For several years now, we at Imlaak have focused our investments on high-rise developments, which have consistently delivered strong returns even during economic downturns. That strategy is now paying dividends, and we plan to continue emphasizing high-rise buildings in Pakistan and Dubai over the long haul. This remains our core investment strategy for 2025.
Where to Invest in Pakistan Real Estate in 2025
A Renewed Emphasis on Cash Flow Properties
Given the uncertainties surrounding plots and files, focusing on cash flow properties is more crucial than ever. Rental income from apartments, high-rises, hotels, or short-term rental properties can help investors:
- Generate Consistent Returns
Rental properties offer monthly or quarterly income, providing a cushion during economic slowdowns. - Build Long-Term Wealth
Steady cash flow can be reinvested, accelerating wealth creation more reliably than speculative plot or file price gains. - Hedge Against Inflation
Rental rates often rise with inflation, ensuring real returns on investment. - Reduce Risk
Diversifying from purely speculative assets (plots/files) into income-producing properties lowers your overall portfolio risk.
With lower interest rates, a stabilizing economy, and a growing emphasis on tourism, Pakistan Real Estate in 2025 is shaping up to be a strong year, especially in the high-rise and hospitality sectors.
While plots and files continue to face uncertainty pending any government amnesty or tax incentives, income-producing properties in urban and tourist-friendly locales are poised for significant appreciation.
- Focus on rental based properties to generate steady cash flow and hedge against economic and currency risks.
- Leverage installment based deals with built-in rental management solutions for easier entry and better ROI.
- Keep an eye on tourism hotspots, as government-backed initiatives in the Galiyat region will likely spur further development and property value growth.
By aligning your portfolio toward cash flow investments in strategically located high-rise projects and tourist hubs, you can position yourself for both short-term gains and long-term stability in Pakistan’s evolving real estate landscape
Tapping into Tourism: Galiyat and Other Northern Regions
In 2025, we plan to focus extensively on tourist-friendly areas such as Galiyat and other northern regions of Pakistan. The hospitality industry has proven to be a viable opportunity for short-term rental income—especially in popular tourist spots. Key reasons include:
- Year-Round Demand
Popular tourist destinations often see consistent occupancy, leading to higher rental yields. - Short-Term Rental Premiums
Nightly or weekly rates in holiday hotspots can significantly exceed regular urban rental rates. - Infrastructure Developments
- Government Funding: The government has sanctioned 500 crores for developing winter sports in the Galiyat region.
- Glass Train Project: A new glass train from Islamabad to Murree has also been approved, promising to enhance tourism and offer unique travel experiences in the coming years.
- Diversification
Owning property in a tourist zone spreads investment risk across various geographical markets.
With these robust initiatives in place, the hospitality and tourism sectors in northern Pakistan are set to flourish, further supporting short-term rental revenue for well-placed investments.
Serviced Apartments, High-Rises, and Constructed Properties
As we’ve highlighted, constructed properties—particularly high-rise buildings—are poised for robust demand in Pakistan Real Estate in 2025. Beyond their rental income resilience, several advantages stand out:
- Investment Threshold: Commercial properties in prime urban centers have grown very expensive. Serviced Apartments and serviced suites offer a more accessible entry point while still delivering strong ROI.
- Installment Flexibility: Many projects provide 3–4 year installment plans, enabling investors to start with a smaller down payment.
- Tax Benefits: Government policies often favor the construction sector, including shorter capital gains tax brackets (two years for high-rise properties vs. six years for plots).
- Lower Maintenance: Serviced Apartments usually require less maintenance than standalone homes, making them more appealing in volatile economic climates.
- Tenant Appeal: Amenities and security features often found in apartment complexes help maintain steady demand.
- Scalability: It’s easier to own multiple Serviced apartments in one building than multiple houses in different locations.
Given declining interest rates and rising tourism, we anticipate at least 30–40% price appreciation in select high-rise projects across 2025 and 2026.
Recommended High-Rise Projects in 2025
We divide our recommended high-rise projects into two main categories:
Lahore
Galiyat & Tourism Hubs
Lahore
a) Sixty6 Gulberg Luxury Hotel/ Serviced Apartments in Lahore
Sixty6 Gulberg reached a significant milestone by completing its grey structure on schedule—one year after our initial “1 Crore Challenge” projection. We foresee an additional 50% gain by the time the project hands over in the first half of 2026.
- Possession in 2025: Importantly, possession is expected in 2025, and we anticipate a significant price jump this year as the project approaches completion.
- Highlights:
- Managed by Imperium Developers
- 1- and 2-bed hotel-style apartments, plus select 3-bed penthouses
- Pakistan’s first smart rental building with a cutting-edge open-access pool rental management system
- Three fine-dining restaurants, a coffee/pastry shop, fitness bar, and cigar club
Given its innovative rental management model and upcoming possession, Sixty6 Gulberg remains a top choice for high returns in Lahore’s real estate market for 2025.
b) Alfaris Heights by Falettis
Alfaris Heights is a serviced apartment in Lahore project near Wapda Town, offering our revolutionary 1% per month payment plan:
- Flexible 1% Payment Plan
Investors can pay 70% until possession and the remaining 30% over 30 months post-possession. - Rental Offset
Ideally, the last 30% can be covered by the apartment’s generated rental income, effectively reducing the investor’s out-of-pocket expenses. - Short-Term Rental Management
Integrated with Imlaak’s Landlord Portal for seamless rental management and high-yield opportunities.
For those seeking prime rental assets in Lahore or Serviced Apartments in Lahore , Alfaris Heights by Falettis stands out as a strategic, cash-flowing investment in 2025.
Galiyat & Tourism Hubs
a) Faletti’s Grand Hotel Ayubia
Faletti’s Grand Hotel Ayubia is a 4-star hotel and serviced apartments in Murree tower nestled in Pakistan’s scenic Galiyat region, making it one of the best rental income project for Pakistan Real Estate in 2025:
- Project Scale
Spanning over 12 Kanals, the master plan includes an amphitheater, virtual golf, basketball court, archery range, and two towers. - Imlaak Short-Term Rental Solutions
Offers high rental yields through Imlaak’s specialized short-term rental management. - 1% Monthly Payment Plan
For the first time in Pakistan at this luxury level, investors can pay just 1% monthly for Serviced Apartments in Murree. - Possession in 2025
Like Sixty6 Gulberg, possession is also slated for 2025, positioning this project for a significant jump in prices as it nears completion.
This financing structure, coupled with the location’s booming tourism appeal, makes Faletti’s Grand Hotel Ayubia an exceptionally attractive option for 2025.
b) Clematis by The Cloud (Nathiagali)
Developed by The Cloud Hotels, Clematis Nathiagali is a boutique hotel project that has entered into an agreement with Imlaak to offer our investors a reliable rental model:
- Units
1-bed, 2-bed, and 2-bed penthouses - Investor-Centric Approach
Tailored rental solutions via Imlaak’s management platform - Tourist Attraction
Nathiagali’s year-round tourist traffic elevates its income-generating potential
Whether it’s Ayubia or Nathiagali, the Galiyat region stands out for short-term rental income—especially for those targeting the hospitality industry or Serviced Apartments in Murree.
The recent government initiatives to develop winter sports and introduce a glass train from Islamabad to Murree are likely to further boost demand in these areas.
Other Areas and Societies: Plots & Files Outlook for 2025
Beyond our focus on cash flow properties and high-rise developments, here’s a quick overview of what we anticipate in other major real estate hubs—unless there is a major policy shift or amnesty scheme by the government. Importantly, investing in plots and files that do not produce cash flow remains a risk due to high volatility and a “gambling mindset” among certain investors, making these assets susceptible to rapid price swings. While we do see some stabilization in these sectors, significant upside is unlikely without favorable government intervention.
DHA Lahore
In DHA Lahore, we don’t see much action happening in 2025 except stability. Prices may see slight positivity, but there will be no huge surprises, particularly in plots and files, which we expect to remain relatively flat. Even Phase 10 files will likely continue to fluctuate around ±20% within the existing price levels. While there may be a renewed interest from end-users, any major price surge would require substantial policy incentives.
DHA Multan
DHA Multan may see some positivity primarily because its prices are still much lower compared to other DHA phases. We anticipate an increase of 10–20% in prices, driven by end-users looking for affordable options and investors seeking slightly faster growth prospects. However, even this modest growth can be influenced by speculative activity, so remain cautious.
DHA Quetta
While DHA Quetta files are already on an upward trend, we caution that purchasing these files remains a gamble. The current upward movement might be artificial, largely driven by speculators. Although DHA Quetta could be a safe bet at these lower prices, any potential gains come with a high risk: the trend could be “highly rewarding or highly devastating.” If you choose to invest, be sure you understand the risks thoroughly.
Conclusion
With lower interest rates, a stabilizing economy, and a growing emphasis on tourism, 2025 is shaping up to be a strong year for Pakistan’s real estate market, especially in high-rise and hospitality sectors. While plots and files continue to face uncertainty pending any government amnesty or tax incentives, income-producing properties in urban and tourist-friendly locales are poised for significant appreciation.
- Focus on rental-based properties to generate steady cash flow and hedge against economic and currency risks.
- Leverage installment-based deals with built-in rental management solutions for easier entry and better ROI.
- Keep an eye on tourism hotspots, as government-backed initiatives in the Galiyat region will likely spur further development and property value growth.
- In traditional plot and file markets like DHA Lahore, DHA Multan, and DHA Quetta, expect modest activity and potential small upsides, but major gains will likely hinge on policy changes or amnesty schemes.
By aligning your portfolio toward cash flow investments in strategically located high-rise projects and tourist hubs, you can position yourself for both short-term gains and long-term stability in Pakistan’s evolving real estate landscape.
Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
- Mobile: +92 333 1717170 (WhatsApp)
- Mobile: +92 333 1616160 (WhatsApp)
Disclaimer: The above content offers general guidelines and perspectives on the Pakistan real estate market. Individual circumstances vary, and it is recommended to conduct thorough research or consult with a professional before making any investment decisions.
