🇵🇰 South Asia 4.5% avg yield

Rental Yield in Karachi (2026)

Average gross and estimated net rental yields for property investors in Karachi, Pakistan. Updated April 2026.

Avg. Gross Yield
4.5%
per year

Estimated Yield by Property Type

Gross yield calculated from average annual rent ÷ estimated purchase price. Net yield deducts estimated 15–20% for expenses.

Unit Type Avg Monthly Rent Annual Rent Est. Gross Yield Est. Net Yield
Studio / 1BR PKR 28,000 PKR 336,000 5.3% 4.3%
2 Bedroom PKR 42,000 PKR 504,000 4.5% 3.7%
3 Bedroom PKR 75,000 PKR 900,000 4.2% 3.4%
4–5 Bedroom PKR 140,000 PKR 1,680,000 3.9% 3.2%
Bungalow PKR 280,000 PKR 3,360,000 3.5% 2.9%

Gross yield estimates use average market purchase prices. Net yield deducts approx. 18% for maintenance, management, and vacancy. Actual returns vary.

Yield by Neighbourhood

DHA (Defence)
Premium
4%
1BR avg: PKR 65,000/mo
Demand: Very High
Clifton
Upscale
4%
1BR avg: PKR 55,000/mo
Demand: High
PECHS
Mid-market
5%
1BR avg: PKR 38,000/mo
Demand: High
Gulshan-e-Iqbal
Mid-market
5%
1BR avg: PKR 28,000/mo
Demand: High
North Nazimabad
Budget
5%
1BR avg: PKR 20,000/mo
Demand: Medium
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Karachi Investment Market Overview

Karachi is Pakistan's commercial capital with the most active property rental market in the country. DHA, Clifton, and Gulshan-e-Iqbal are the main rental zones catering to different income segments. Rents have risen sharply due to inflation and housing shortage.

Investor Insights

  • Rents are paid monthly or bi-monthly — two months advance is typically required.
  • No formal rent control in Karachi — market rates apply.
  • Generator/backup power backup is factored into higher-tier rents.
  • DHA properties command significant premiums due to security and infrastructure.
  • Society maintenance charges (up to PKR 5,000/month) are separate from rent in gated communities.

Karachi Investment Facts

Market 🇵🇰 Pakistan
Avg Gross Yield 4.5%
Est. Net Yield ~3.7%
YoY Rent Change +9.1%
1BR Avg Rent PKR 42,000/mo
Population 16M
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Rental Yield FAQs — Karachi

What is a good rental yield in Karachi?

The average gross yield in Karachi is 4.5%. A yield above this is considered good. Smaller units (studios, 1BR) typically yield more than larger apartments because purchase prices don't scale proportionally with rent.

What is the difference between gross and net yield?

Gross yield = (annual rent ÷ property price) × 100. It ignores costs. Net yield deducts operating expenses — maintenance, management fees, insurance, and vacancy periods — typically 15–20% of gross rent. In Karachi, the estimated net yield averages ~3.7%.

Which property type gives the best yield in Karachi?

Studios and 1-bedroom apartments typically offer the highest gross yields in Karachi because entry prices are lower relative to rental income. Studios average around 5.3% gross yield, while 3+ bedroom units may yield 3.9% or less.