Lahore Real Estate Rental Yield by Area 2025: Where Should You Invest?
Introduction: The 2025 Rental Market Shift
Lahore’s real estate market is maturing fast — and rental yield has emerged as the key metric for smart investors. As construction picks pace in DHA Phase 9 Prism, CBD Punjab, and LDA City, more professionals are moving towards purpose-built rental homes and apartments.
In 2025, the average gross rental yield in Lahore ranges between 4.8% to 7.2%, depending on location, property type, and tenant demand. This report breaks down the data zone-wise — so investors can see where returns are outperforming.
Zone-Wise Breakdown: Lahore’s 2025 Rental Yields
| Area / Zone | Property Type | Avg Rent (PKR / Month) | Avg Price (PKR) | Gross Yield (Annual %) |
|---|---|---|---|---|
| DHA Lahore Phase 6 | 1 Kanal House | 400,000 | 85,000,000 | 5.6% |
| DHA Phase 9 Prism (possession sectors) | 1 Kanal House | 300,000 | 60,000,000 | 6.0% (projected) |
| Bahria Town Lahore | 10 Marla House | 180,000 | 32,000,000 | 6.7% |
| Johar Town / Faisal Town | 1 Kanal House | 270,000 | 50,000,000 | 6.4% |
| Gulberg / MM Alam Zone | Luxury Apartment | 550,000 | 120,000,000 | 5.5% |
| LDA City Lahore (possession blocks) | 10 Marla House | 120,000 | 22,000,000 | 6.5% |
| Wapda Town / Valencia | 1 Kanal House | 240,000 | 45,000,000 | 6.4% |
| Cantt / Cavalry Ground | 1 Kanal House | 280,000 | 60,000,000 | 5.6% |
| CBD Punjab (under construction) | Commercial Floor (Estimated) | — | — | 7.0–8.5% (projected) |
Key Insights for 2025
- Mid-tier localities like LDA City and Bahria Town outperform high-end zones in yield percentage due to lower capital cost and strong rental demand.
- CBD Punjab and RUDA Chahar Bagh projects are expected to push yields higher by introducing high-end apartments with managed rental models.
- DHA Phase 9 Prism is gaining traction post-possession; expected to maintain a stable 6% yield once rental inventory increases.
- Short-term rentals (Airbnb-style) in Gulberg and DHA Phase 5 show 7–9% net yield, though operational costs reduce the advantage.
Rental Yield vs. Capital Gain (2020–2025)
| Year | Avg Rental Yield (%) | Avg Annual Capital Growth (%) |
|---|---|---|
| 2020 | 5.1 | 7.8 |
| 2021 | 5.3 | 9.2 |
| 2022 | 5.6 | 11.5 |
| 2023 | 5.8 | 12.1 |
| 2025 (Projected) | 6.3 | 10.5 |
Lahore is now a yield-focused market, as price growth stabilizes while rental demand rises among professionals and digital nomads.
How to Use This Data
- Investors: Compare yield vs. capital appreciation before deciding between resale and rental models.
- Landlords: Optimize rents using eProperty.pk’s live market evaluation tool.
- Overseas Pakistanis: Target managed projects (DHA apartments, CBD Punjab towers) with stable monthly returns.
Expert Opinion: Atif Iqbal (Property Dost)
“A strong rental yield today means sustainable cash flow tomorrow. Investors should focus on possession-ready areas with infrastructure, community, and lifestyle facilities — not just hype. DHA Prism, LDA City, and CBD Punjab represent Lahore’s future rental corridors.”
Also check:
- DHA Lahore Latest Updates
- LDA City Lahore Possession News
- CBD Punjab Investment Guide
- Construction Services
- Ravi City / RUDA Updates
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