As we move further into 2025, many investors, especially overseas Pakistanis, are asking one question: Will property prices in Pakistan fall or rise this year? The answer, based on current indicators, leans towards growth.

There are various new developments in the country that indicate a more stable, optimistic environment for real estate. Th confidence in the market is growing as a result of economic recovery and various government-backed policies. At One Homes, we’ve seen this trend reflect directly in  buyer sentiment, particularly among overseas investors who want to secure assets in Islamabad and Lahore.

A Stronger Economy Builds Investor Confidence

Pakistan’s economic outlook has improved in recent months. The World Bank recently revised the country’s growth forecast for the fiscal year 2024–25 to 2.8%. They have citied reduced inflation, stronger industrial activity, and a more stable political environment.

For the real estate sector, economic stability is a key driver. When inflation cools and industries begin to pick up pace, purchasing power increases—and so does real demand for property. That’s exactly what we’re starting to see in major urban markets like Islamabad and Lahore, where One Homes continues to develop luxury real estate built for overseas buyers.

Inflation and Interest Rates Show Improvement

In March 2025, Pakistan’s inflation rate fell to just 0.7%. This is the lowest it has gone in nearly six decades. At the same time, analysts expect interest rates to soften further in the coming months, potentially dropping to around 9%.

Lower inflation and interest rates help make property financing more accessible and create a more affordable investment environment. For overseas Pakistanis earning in dollars or pounds, this opens the door to more favorable entry points and stronger long-term gains.

Urban Growth Is Fueling Housing Demand

The biggest factor in Pakistan’s real estate growth is the urbanization. This is causing the demand for housing to rise, especially in areas that have strong infrastructure and amenities.

And since there is growing interest of overseas Pakistanis to invest back home, property demand in cities like Lahore and Islamabad is expected to stay strong. These rapidly developing urban areas offer high-quality real estate that serve as a great vacation home and a reliable investment.

What It Means for Overseas Pakistanis

All these signs point to an upward trend in property prices in 2025. While no one can predict short-term movements with certainty, the bigger picture shows real estate is on a steady, upward path.

For overseas Pakistanis, this is a moment to consider secure, well-managed opportunities, like those offered by One Homes. With international-standard developments and a focus on high-growth locations, we create property investments that offer both emotional connection and financial value.

Invest with Confidence

At One Homes, we specialize in making real estate investment simple, transparent, and secure for overseas Pakistanis. Whether you're looking for a second home, a source of income, or a way to stay connected to your roots, we’re here to help you make the right decision at the right time.