Pakistan’s Property Has An Unaffordable Future

Pakistan's property market looks quiet on the surface, but the funds moving underneath will shock everyone.

Key points

• From July 2026, the withholding tax for filers was reduced to 1.25 percent for property purchases and 2.75 percent for sales.
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• He remarked some residential costs have risen around 20-25 percent since the US-Iran war began.
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• I lately met a seasoned property dealer working out of DHA Multan and Model Town.

I lately met a seasoned property dealer working out of DHA Multan and Model Town. He believes the market is now less regarding whether costs can rise and more regarding who is bringing in the capital. Throughout Multan, Karachi, Lahore and Islamabad, there is a devilishly high demand but most of us can't afford it without a mortgage.

He remarked some residential costs have risen around 20-25 percent since the US-Iran war began. Bill Gates Should Stay Away From Pakistan. Pakistan Now Has 2 Markets.

Notably, the agent remarked there are two highly different property markets emerging in Pakistan now.

At the lower and middle end, genuine housing demand is providing backing. The Prime Minister's cheap housing scheme now allows financing of up to Rs. 10 million at a fixed 5 percent customer rate but there's more funds coming from undeclared assets. At the higher end, the story is more complicated.

He additionally stated expensive plots and luxury properties are now too expensive since transaction volumes are too fragile to justify asking rates. They are getting out of control and in the coming years even the rich won't be able to afford them, he continued.

That does not mean a major property crash is inevitable. "It means the market could behave very differently by location, property type and price bracket, " he explained.

There is additionally a new flow of capital to watch. While some funds and liquid assets are being redirected toward Pakistan, the Gulf war has disrupted the movement of Pakistani funds into Dubai.

For context, the agent remarked this behavior was supporting demand, particularly in established areas throughout urban Punjab and Karachi.

Policy is adding another layer. From July 2026, the withholding tax for filers was reduced to 1.25 percent for property purchases and 2.75 percent for sales.

That is why Pakistan's property market may be a sleeping kraken. But the real test is liquidity. A property can be worth Rs. 800 million on paper, yet mean little to the owner if nobody is willing to pay more than Rs. 400 million.

In practice, the next phase in the property sector may introduce a bigger difficulty: genuine housing in high-demand locations versus speculative land where asking costs have run far ahead of actual buyers. Stay Connected with ProPakistani.

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Taken together, the developments around pakistan's Property Has An Unaffordable Future point to a situation that is still moving, and the coming days should bring more clarity.