Pakistan’s property market may appear relatively quiet, but a property dealer operating in DHA Multan and Model Town says significant changes are taking place beneath the surface. According to the dealer, investment patterns and the source of available funds are increasingly influencing the market alongside traditional factors such as prices and demand.
The dealer said housing demand remains active in major cities including Multan, Karachi, Lahore, and Islamabad. He also claimed that some residential property prices have increased by around 20–25% since the start of the US-Iran conflict, although such figures can vary significantly by location, property type, and market segment.
According to the dealer, the residential market is currently showing different trends across price ranges. Lower- and middle-priced housing continues to be supported by genuine end-user demand, while financing availability remains an important factor for many buyers.
He also referred to the Prime Minister’s affordable housing scheme, which he said provides financing of up to Rs. 10 million at a fixed customer rate of 5%. Separately, he claimed that funds linked to undeclared assets are also entering parts of the property market. Such claims require independent verification.
The luxury property segment, meanwhile, is reportedly experiencing lower transaction volumes compared with asking prices. The dealer said high-value plots and properties may take longer to sell, but this does not necessarily indicate a broad-based market decline. Conditions can differ considerably between locations and property categories.
The dealer further said that disruption in the movement of Pakistani funds toward Dubai has resulted in some capital and liquid assets being redirected toward Pakistan. According to his assessment, this may be supporting demand in established areas of urban Punjab and Karachi.
The information provided also states that withholding tax rates for filers were reduced from July 2026 to 1.25% on property purchases and 2.75% on sales. Changes in transaction costs can influence buyer and seller decisions, although their overall impact depends on broader market conditions.
Another important factor is liquidity. A property may have a high asking or quoted value on paper but still attract significantly lower offers if buyers are unwilling to pay that amount. For example, a property valued at Rs. 800 million could face offers closer to Rs. 400 million, highlighting the difference between an advertised valuation and actual market liquidity.
Overall, the market appears to be experiencing different trends across price segments, with end-user demand, financing availability, liquidity, investment flows, and location all playing a role.
Disclaimer: This article is for informational purposes only and is based on the claims and figures provided. It should not be considered financial, investment, or property advice. Individual claims, tax rates, financing details, and market figures should be independently verified before making any investment or property decision.
