Rental Yield in Lahore by Society: What the 2026 Data Shows

No official body publishes society-level rental yields for Lahore; rents reported in 2026 against Houseplot's indicative prices imply gross yields of roughly 2.6–4.7% a year for DHA houses, before tax and costs, so buyers should calculate yield on the specific property using annual rent divided by total purchase cost.

Lahore house rents rose fast in 2025–26, but rental yields are still modest. Rents reported in July 2026 imply gross yields of roughly 2.6–4.7% a year for DHA houses, before tax, repairs and empty months.

There is no official, society-by-society yield table for Lahore. We looked. What follows is the sourced data that does exist, the yields it implies, and a method to work out the yield on any property you are considering.

What is known, and what is not

What is missing matters as much. No source we opened gives rents for a specific size in Bahria Town, Lake City, Wapda Town, Valencia, Paragon City or most other societies. The area averages above mix all house sizes, so they cannot be paired with a price for one size.

We have not invented figures to fill those gaps. If you see a precise "yield by society" table elsewhere, ask where the rent data came from.

Implied gross yields where rent and price match

Yield only makes sense when rent and price describe the same kind of property. Only two of the reported rents name both an area and a size. We set them against Houseplot's indicative price data (Jun–Aug 2026).

These are illustrations, not measured yields. The rents come from reporting, not a survey, and the phases they refer to are not named. Treat them as a sense-check.

For the two- and three-marla houses in Faisal Town, Iqbal Town and Samanabad, Houseplot's price data does not cover those sizes. We cannot calculate a yield for them without guessing, so we have not.

How to calculate rental yield yourself

The formula is simple. Getting honest inputs is the hard part.

Gross yield = annual rent ÷ total purchase cost × 100

Net yield = (annual rent − tax − running costs − vacancy) ÷ total purchase cost × 100

1. Get three real rent figures for the same size and block. Ask local agents and look at what similar houses actually let for, not asking rents.
2. Use the lowest of the three as your base rent. Asking rents run high.
3. Add up the full purchase cost. Price plus 1.25% buyer tax under 236K if you are a filer, 1% stamp duty, PLRA or society transfer charges, and any commission.
4. Deduct income tax on rent using FBR's section 155 slabs (table below).
5. Deduct running costs: repairs, society maintenance charges, property tax and insurance.
6. Allow for vacancy. One month empty a year cuts gross yield by about one-twelfth.
7. Divide by the full purchase cost, not just the price.

Worked example: a DHA five-marla house

Assume the house is in the indicative range and costs 3 crore. A filer pays 1.25% under 236K (Rs375,000) and 1% stamp duty (Rs300,000). The total is about Rs3.07 crore before smaller fees.

Rent is Rs100,000 a month, the floor of the reported range, so Rs1.2 million a year.

Repairs and society charges come off that 3.3% too. We have not put a number on them because they vary widely by house.

Tax on rental income (FY2026-27)

FBR's withholding tax rate card for 2026-27 sets these section 155 rates for individuals and AOPs on the Active Taxpayers List.

The top slab hits big houses hard. On a one-kanal house let for Rs350,000 a month (Rs4.2 million a year), the tax is Rs155,000 plus 25% of Rs2.2 million: Rs705,000. That is nearly 17% of the rent.

How Lahore yields compare with savings rates

Rental yield alone looks weak next to safe returns. From 21 October 2026, Behbood Savings Certificates pay 12.96% and Regular Income Certificates 12.12%. SBP's policy rate is 11.5%, per its rates page.

Landlords accept low yields because they expect the property's value to rise as well. The 2020 Profit analysis estimated Pakistani property prices grew about 11.3% a year from 1999 to 2020, and added roughly 3% in rent. Past growth is not a promise of future growth.

What pushes yield up or down

• Size. Smaller houses usually let for more per crore invested. The DHA figures above show the five-marla yield floor sitting above much of the kanal range.
• Location within the society. Blocks near schools, offices and main boulevards let faster.
• Condition. A recently finished house commands more rent, but you paid for that finish.
• Portions. Many Lahore landlords let ground and upper floors separately. Check whether the society allows it.
• Furnished lets can earn more but cost more to maintain.
• Rent growth. The roughly 10% annual increase common in agreements, per the Express Tribune, lifts yield over time if prices rise more slowly.

Common mistakes

• Using asking rent instead of achieved rent.
• Dividing by the price only and ignoring taxes and transfer costs.
• Ignoring the 25% top tax slab on large rents.
• Pairing an area-wide average rent with the price of a single size.
• Forgetting vacancy, especially between tenants in summer.
• Judging a let only on yield and ignoring whether the society's value is likely to rise.

This guide is general information; confirm current rates with FBR/the bank/a lawyer before you pay.

Sources