Pakistan’s real estate market is entering a pivotal moment. Backed by improving economic indicators, growing investor confidence, and rising demand for quality urban housing, the sector is drawing attention from both domestic and overseas buyers. Stable currency reserves, robust remittance inflows, and a cooling inflation environment are reinforcing market fundamentals, while infrastructure development and modern lifestyle projects are reshaping city skylines.
Pakistan’s Economic Stability Fuels Real Estate Growth
Pakistan’s macroeconomic indicators are signaling stability and growth, critical drivers of real estate demand. Workers’ remittances hit a record US $38.3 billion in FY 2025, up 27% year‑on‑year, fortifying household income and supporting consumption and savings. At the same time, foreign exchange reserves climbed dramatically, rising by over US $5 billion to reach US $14.5 billion by June 2025, boosting confidence in currency stability and enabling smoother debt servicing. With inflation cooling and interest rates easing, the stage is set: this is the kind of macro backdrop that elevates real estate from necessity to discreet strategic investment.
Unprecedented Market Momentum in Pakistan’s Property Sector
Pakistan’s real estate sector is entering a period of revitalization, fueled by renewed economic confidence and urban transformation. According to Global Property Guide, residential prices in Karachi have risen by 10.54% year‑on‑year, while Islamabad’s average rate stands at PKR 30,140 per square foot as of early 2025. The sector’s depth is evident in the PKR 1.4 trillion (USD 4.9 billion) investment influx during FY 2023-24, marking a 15% increase from the prior year. With the State Bank of Pakistan’s policy rate now at 11%, down sharply from last year’s peak of 22%, home financing has become significantly more affordable, supporting sustained demand and signalling a favourable environment for both domestic and overseas investors.
Urbanisation and Housing Shortage Create Long-Term Demand
Urbanization is accelerating in Pakistan, creating a pressing housing deficit. The 2023 census reports an urban population share of 38.8%, total population surpassing 241 million. Housing remains insufficient, Pakistan faces a structural housing deficit that spans millions of units-and annual shortages are projected to rise without immediate intervention. This gap is fueling demand for vertical developments and modern residential solutions, especially in cities like Islamabad, Lahore, and Karachi, where gated communities and high-rise projects are gaining popularity.
Infrastructure Development Boosts Property Investment Potential
Pakistan’s ambitious infrastructure drive is adding a powerful boost to real estate valuations. The federal government’s FY 2025-26 development budget earmarks USD 2.3 billion specifically for energy, water, transport, housing, and urban planning projects, according to Arab News.
Cities with stronger infrastructure integration typically see faster price appreciation, higher rental yields, and better resale potential, making them compelling targets for both local buyers and overseas investors seeking long-term value.
With interest rates trending lower, infrastructure expanding, and pricing momentum building, Pakistan’s property market is entering a pivotal phase. For overseas Pakistanis and institutional buyers, the opportunity lies in securing prime assets before heightened competition drives valuations further.
One Homes: Partnering in Pakistan’s Real Estate Growth Story
At One Homes, we specialise in luxury, investment-grade properties designed for overseas Pakistanis. Our developments in Lahore and Islamabad are positioned in prime growth corridors, built to international standards, and backed by a UK-based structure that emphasises transparency and delivery. For those looking to participate in this cycle with the right partner, the opportunity is here.
