{
  "id": 10432481,
  "title": "Pakistan’s Property Has An Unaffordable Future",
  "url": "https://urgent.news/2026/09/28/pakistans-property-has-an-unaffordable-future",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-09-28T11:08:18.000Z",
  "source": {
    "name": "ProPakistani",
    "slug": "propakistani",
    "url": "https://propakistani.pk/2026/09/28/pakistans-property-has-an-unaffordable-future/"
  },
  "original_language": "en",
  "account": "Pakistan's property market appears subdued at first glance, but the underlying funds moving within it are eye-opening. Recently, I spoke with an experienced property broker operating in DHA Multan and Model Town. He believes the market is no longer focused on whether prices can increase, but rather on who is supplying the capital. Across key cities like Multan, Karachi, Lahore, and Islamabad, there is a strong demand for properties, but most individuals find them unaffordable without borrowing.\n\nThe agent observed two distinct property markets emerging in Pakistan. On one hand, there is a growing demand for affordable housing at the lower and middle levels. The government's subsidised housing scheme enables financing up to Rs. 10 million at a fixed 5 percent customer rate. Additionally, there is a surge in money coming from undeclared assets. However, the higher end of the market presents a different picture. Luxury properties and expensive plots are becoming increasingly unattainable, as transaction volumes are insufficient to support the asking prices. The agent warns that even the affluent may soon struggle to afford such properties.\n\nWhile a major property crash is not imminent, the market's behavior could vary depending on location, property type, and price bracket. A new source of funds to watch is the Gulf war. The disruption of Pakistani money movement to Dubai has resulted in some funds and liquid assets being redirected back to Pakistan. This influx of capital is supporting demand, particularly in established areas of urban Punjab and Karachi.\n\nGovernment policy is also influencing the market. Effective July 2026, the withholding tax for property purchases will be reduced to 1.25 percent, while sales tax will decrease to 2.75 percent. This change may contribute to the perception of Pakistan's property market as a \"sleeping kraken.\" However, the true test lies in liquidity. A property might be worth Rs. 800 million on paper, but its true value to the owner is uncertain if no one is willing to pay more than Rs. 400 million. The next phase in the property sector will bring additional challenges: finding a balance between genuine housing in high-demand locations and speculative land where prices have far outpaced actual buyer interest.",
  "summary": "Pakistan’s property market looks quiet on the surface, but the money moving underneath will shock everyone. I recently met a … Read More The post Pakistan’s Property Has An Unaffordable Future appeared first on ProPakistani .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}