Before renting restaurant space in Lahore, confirm the building's LDA commercialisation and fire safety status, budget for 16% Punjab sales tax on commercial rent, and secure PRA registration and a Punjab Food Authority licence before opening.
Restaurant space in Lahore is concentrated on commercial roads and markets in Gulberg, DHA, Johar Town and Allama Iqbal Town, plus food courts in large malls. The rent is only part of the cost: commercial rent in Punjab now carries 16% provincial sales tax, and you need PRA and Punjab Food Authority clearance before the first customer walks in.
Where restaurant space is found in Lahore
The Department of Tourist Services keeps a register of licensed restaurants, and its Lahore entries give a fair map of where food businesses actually operate. Gulberg (Liberty, Main Boulevard and Gulberg II/III) appears most often, followed by DHA commercial areas, Johar Town and the Emporium Mall area, Allama Iqbal Town, Bahria Town, MM Alam Road, Faisal Town and Model Town.
MM Alam Road is the best-known strip. It began as a residential road and turned commercial as schools, fashion studios and then restaurant chains moved in; the Punjab government widened and rehabilitated it between November 2012 and March 2013.
Other names on the register include Wahdat Road, Jail Road, Ferozepur Road, Garden Town, Shadman, Raiwind Road and cantonment markets. These are the places where you will find stand-alone restaurant buildings, ground-floor units in plazas and food court counters inside malls.
| Format | Typical setting | What to check first |
|---|---|---|
| Stand-alone building | Commercial roads in Gulberg, DHA, Johar Town | Commercialisation fee paid, parking, kitchen exhaust route |
| Ground-floor unit in a plaza | Main boulevards and markets | Building completion certificate, fire exits, gas and power load |
| Food court counter | Large malls | Mall's service charges, shared seating rules, trading hours |
| Rooftop or upper floor | Gulberg and DHA plazas | Approved use of that floor, fire escape, lift access |
What drives restaurant rent
Houseplot's indicative price data (Oct 2026) covers houses, plots and residential rents only, so we do not publish restaurant rent ranges. Ask for written quotes and compare like with like.
The main drivers are frontage on a busy road, visible signage, customer parking, and whether the building already has commercial status. Kitchen-ready units with gas, exhaust ducting and a heavy electricity load save months of fit-out.
Tax now changes the sum. Under the Punjab Finance Act 2025, rent on non-residential property attracts 16% Punjab sales tax from July 1, 2025; only residential leases for personal use stay exempt. On every Rs100,000 of monthly rent, that is Rs16,000 extra. If the landlord is unregistered, PRA can require the tenant to withhold and deposit the tax, so settle who pays it in the lease.
Licences and approvals before you open
- PRA registration. Register as a service provider with the Punjab Revenue Authority. A Pakistan Observer guide notes that PFA applications without a PRA certificate are rejected.
- Punjab Food Authority licence. Apply online with your PRA certificate; PFA inspects the premises before issuing it. The fee is calculated online from investment, seating, sales, rent and staff. One worked example: a single-branch outlet with up to Rs500,000 investment and 10 seats came to Rs10,000.
- DTS registration. The Department of Tourist Services registers and licenses restaurants under the Punjab Hotels & Restaurants Act 1976, amended 2020, and Rules 2021.
- Building status. The LDA will not issue completion certificates to commercial buildings without a Civil Defence fire safety NOC. Ask the landlord for both.
Your customers' bills are taxed too. Since July 1, 2026, restaurant sales tax in Punjab is 16% on cash and 8% on card, wallet or QR payments, up from 5% on digital.
The lease: what Punjab law expects
The Punjab Rented Premises Act 2009 says a landlord cannot let a building except through a tenancy agreement (Section 5). Section 6 lists what it must state: parties, building description, tenancy period, rent, rate of increase, due date, purpose of letting, and any advance, security or pagri.
The landlord presents the agreement to the Rent Registrar. If it does not follow the Act, a tenant must deposit 5% of annual rent, and a landlord 10%, before the Rent Tribunal hears a complaint (Section 9).
For a restaurant, also write in the fit-out period, who restores the unit on exit, permission for signage and exhaust, and the clause on who bears the 16% sales tax.
Red flags before you sign
- Unpaid commercialisation. In February 2026 the LDA sealed 102 properties, including restaurants and food outlets, in Faisal Town, New Garden Town, Gulshan Ravi, Samanabad, Pine Avenue and New Defence Road, for unpaid commercialisation fees and penalties.
- No fire exits or equipment. Punjab approved a Fire Inspectorate Unit within Rescue 1122 in January 2026, with orders to seal buildings that break fire rules and to require firefighting equipment and external evacuation stairs in commercial buildings.
- A house on a residential street. A home converted into a café without commercial status is exactly what sealing drives target.
- A verbal lease. Without a written agreement, you lose easy access to the Rent Tribunal.
Sources
- Registered Restaurants — Department of Tourist Services Punjab — where licensed Lahore restaurants are located
- About Us — Department of Tourist Services Punjab — Hotels & Restaurants Act 1976, 2020 amendments, Rules 2021
- M. M. Alam Road — Wikipedia — history and 2012–13 rehabilitation
- Commercial property rent to increase after new 16pc taxes — Pakistan Observer (Jul 2025) — 16% PST on commercial rent, effective date
- Punjab imposes sales tax on services on rental payments — ABS & Co., Legal 500 — who collects and withholds
- Punjab increases restaurant sales tax on digital payments to 8% — Profit (Jul 2026) — 16% cash, 8% digital
- Guide to start a food business in Punjab: PRA and PFA — Pakistan Observer (Mar 2026) — registration order and documents
- Restaurant license fee in Punjab — Pakistan Observer (Dec 2024) — PFA fee calculator example
- LDA makes fire safety NOC mandatory for commercial buildings — Bloom Pakistan (Jan 2026) — Civil Defence NOC and completion certificates
- Punjab to set up fire inspectorate unit — Aaj News (Jan 2026) — Rescue 1122 inspectorate, sealing
- LDA seals 102 illegal commercial properties — ProPakistani (Feb 2026) — areas and reasons
- Know your rights: landlords and tenants — Express Tribune (2014) — Rented Premises Act sections 5, 6, 9