For many overseas Pakistanis, property has never been just numbers on a page. It’s a link back to family, a place to return to, and a way of keeping wealth safe. In 2025, the global conversation has shifted toward one measure in particular: rental yields. Look closely, and Pakistan’s main cities compare well against some of the world’s biggest markets.
Rental yield is simply the rent a property earns each year as a percentage of its value. Investors follow it because it shows income strength, not just headline prices. In today’s environment, where inflation, interest rates, and currencies move quickly, steady yields are reassuring.
For those looking deeper, rental yield sits alongside return on investment (ROI) as a key measure of property performance. Investopedia notes that ROI helps investors assess profitability by factoring in income, expenses, and financing costs. Together, yield and ROI give a fuller picture of whether a property is generating meaningful returns.
In the world’s most mature property markets, yields are relatively modest. London averages around 4.3%, despite its reputation as one of the most dynamic financial hubs. New York sits at 4.9%. In Paris, typical rental yields sit close to 4.6%. Tokyo is lower still, often between 3.4% and 4.2%.
What these examples show is that in the world’s most expensive cities, ownership comes at a premium. Buyers often accept smaller annual returns because they value long-term appreciation or the prestige of holding property in these markets.
Against this backdrop, Pakistan’s two leading cities stand out. Islamabad delivers an average gross rental yield of 6.75%, while Lahore offers about 5.9%. That difference is significant. A property in Islamabad can generate nearly 50% more rental income relative to value than one in London or Tokyo.
What drives this? Lahore’s universities create steady housing needs for students. Its commercial districts, such as Gulberg, attract professionals. In Islamabad, a mix of expatriates, government staff, and private sector workers sustains a reliable tenant base. This demand diversity reduces vacancy risk and underpins yield performance.
The higher yields in Pakistan are not accidental. In global hubs like London or Paris, property values have escalated so much that returns are squeezed. In Pakistan, values remain more accessible relative to rent, which lifts yields.
Urbanisation plays a part too. New roads, transport links, and commercial projects are pulling activity into areas once seen as peripheral. Families, students, and professionals are following opportunities, while housing supply struggles to keep pace. This imbalance keeps rents and yields strong.
For overseas Pakistanis, the comparison is personal. Many live in cities where yields rarely cross 5%. They know the cost of entry in London, New York, or Tokyo is measured in millions, often for modest rental returns. To see yields above 6% in Islamabad and close to 6% in Lahore offers perspective: Pakistan is not outside the global real estate conversation; it is part of it.
At the same time, reforms are making investment easier. Land records are being digitised, different government programmes give overseas families direct access, and regulators are increasing oversight. These changes add confidence and transparency.
At One Homes, we believe overseas Pakistanis should be part of this conversation with confidence. Our projects in Lahore and Islamabad are designed around the same principles that drive yield strength: prime locations, lifestyle appeal, and transparent systems. For families abroad, property in Pakistan is both a financial decision and a personal one, and in 2025, the numbers show it belongs on the global stage.