Rental Yield in Lahore (2026)
Average gross and estimated net rental yields for property investors in Lahore, Pakistan. Updated April 2026.
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
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Open Yield Calculator →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.
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Lahore Investment Facts
Renttaag automatically calculates yield for each property as rent and expenses are recorded. Free for up to 3 properties.
Start Free →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.