🇵🇰 South Asia 4.2% avg yield

Rental Yield in Lahore (2026)

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

Avg. Gross Yield
4.2%
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 22,000 PKR 264,000 5.0% 4.1%
2 Bedroom PKR 38,000 PKR 456,000 4.2% 3.4%
3 Bedroom PKR 65,000 PKR 780,000 3.9% 3.2%
4–5 Bedroom PKR 120,000 PKR 1,440,000 3.6% 3.0%
Bungalow PKR 220,000 PKR 2,640,000 3.2% 2.6%

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 Lahore
Premium
3.7%
1BR avg: PKR 55,000/mo
Demand: Very High
Bahria Town
Gated
3.7%
1BR avg: PKR 45,000/mo
Demand: High
Gulberg
Commercial
3.7%
1BR avg: PKR 40,000/mo
Demand: High
Model Town
Mid-market
4.7%
1BR avg: PKR 30,000/mo
Demand: Medium
Johar Town
Mid-market
4.7%
1BR avg: PKR 25,000/mo
Demand: Medium
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Lahore Investment Market Overview

Lahore is Pakistan's cultural capital with a rapidly growing rental market fuelled by a large student population, corporate sector growth, and an expanding technology sector. DHA Lahore and Bahria Town are the premium markets.

Investor Insights

  • Large student population from LUMS, UCP, and UET drives apartment demand in Gulberg/DHA.
  • IT sector growth (Arfa Tech Park area) creating corporate housing demand.
  • Bahria Town offers self-contained community living — popular with families.
  • Monthly advance payment (2–3 months) is standard practice in Lahore.

Lahore Investment Facts

Market 🇵🇰 Pakistan
Avg Gross Yield 4.2%
Est. Net Yield ~3.4%
YoY Rent Change +8.4%
1BR Avg Rent PKR 38,000/mo
Population 13M
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Rental Yield FAQs — Lahore

What is a good rental yield in Lahore?

The average gross yield in Lahore is 4.2%. 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 Lahore, the estimated net yield averages ~3.4%.

Which property type gives the best yield in Lahore?

Studios and 1-bedroom apartments typically offer the highest gross yields in Lahore because entry prices are lower relative to rental income. Studios average around 5.0% gross yield, while 3+ bedroom units may yield 3.6% or less.