Warehouses in Lahore are best rented in industrial estates or zones where storage use is permitted, because the LDA has restricted new warehouses inside the city and Punjab is acting against industrial use in residential areas; use a written, registered lease and budget for 16% Punjab sales tax on non-residential rent.
Renting a warehouse in Lahore is mostly a zoning question: the LDA has restricted new warehouses inside the city, and Punjab is moving unauthorised industrial users out of residential areas. A cheap godown in the wrong zone can be sealed, so check land use before rent.
Where warehouses are found
The LDA has steered storage away from the city core. In December 2022 ProPakistani reported that the LDA restricted new wholesale markets, warehouses and newly designated commercial roads within the city to control traffic.
Planned industrial land sits on the edges. The Punjab Industries Department's estate list shows:
| Estate | Area | Manager | Plot status (sold / total) |
|---|---|---|---|
| Sundar Industrial Estate, Lahore | 1,767 acres | PIEDMC | 717 / 717 |
| Quaid-e-Azam Business Park, Sheikhupura | 1,860 acres | PIEDMC (SEZ) | 397 / 680 |
| SIE-II, Lahore | 114 acres | PSIC | 321 / 325 |
| Lahore-I small estate | 10 acres | PSIC | 42 / 42 |
A fully allotted estate has no new plots, so any space there comes from existing plot holders, and storage use must fit the estate's own rules. Older industrial pockets such as Daroghawala, Saggian, Mahmood Booti and Barki Road face relocation pressure; APP reported in July 2026 that industrialists there sought a halt to relocation and regularisation.
What drives rent
Covered area, clear height, floor loading, truck access and turning space, power load, and distance to the motorway, Ring Road or the market you serve drive rent. Dry storage, cold storage and bonded warehouses are different products with different approvals.
Houseplot's rent files do not include warehouses, so we don't quote rates. Get at least three written offers for comparable sheds in the same zone and compare cost per covered sq ft, including taxes and service charges.
Zoning and approvals to check
- Land use. Ask the owner for the approved building plan and the permitted use. Storage in a residential area is a risk.
- Enforcement. In June 2026 Punjab said it had mapped 5,206 illegal industrial units in Lahore, 4,514 of them in residential areas, and would cancel their NOCs, Pakistan Observer reported.
- Fire safety. For commercial buildings the LDA has tied completion certificates to a verified Civil Defence NOC, Bloom Pakistan reported. Ask for it, and check exits, alarms and extinguishers yourself.
- Estate rules. In PIEDMC or PSIC estates, confirm with the estate office that subletting and storage use are allowed.
Lease terms and taxes
The Punjab Rented Premises Act 2009 covers buildings let for non-residential use and open land let for business. It requires a written agreement presented to the Rent Registrar, stating the period, rent, annual increase, purpose and any security. Using the premises for a different purpose, or subletting without written consent, are grounds for eviction.
| Item | Rate / rule |
|---|---|
| Sales tax on non-residential rent | 16% from 1 July 2025 (PRA) |
| Tax on rent received by a company landlord (155) | 15% filer; 30% non-filer |
| Tax on rent received by an individual or AOP landlord (155) | Nil to Rs300,000 a year, then 5%, 10% and 25% slabs |
| Unregistered tenancy | Tribunal fine of 10% of annual rent for landlord, 5% for tenant |
Sources: Pakistan Observer on the 16% PRA tax; FBR rate card 2026-27 on section 155; the Rented Premises Act, section 9, on fines.
Red flags
- A warehouse in a residential street or a converted house.
- No approved plan, no fire NOC, or an owner unwilling to show either.
- A lease that does not state "storage/warehouse" as the permitted purpose.
- Rent quoted "all inclusive" with no sales tax invoice.
- A sublease inside an industrial estate without the estate office's consent.
- Large advance rent with no registered agreement.
This guide is general information; confirm current rates with FBR/the bank/a lawyer before you pay.
Sources
- LDA amends bylaws for high-rise buildings — ProPakistani (Dec 2022) — restriction on new warehouses within the city
- Industrial Estates & SEZs — Punjab Industries Department — estates near Lahore, areas, plot status
- Industrialists seek regularization — APP (14 Jul 2026) — older industrial areas facing relocation
- Punjab to act against illegal industrial units — Pakistan Observer (Jun 2026) — Lahore mapping, NOC cancellation
- LDA fire safety rules for commercial buildings — Bloom Pakistan (Jan 2026) — Civil Defence NOC
- The Punjab Rented Premises Act 2009 — written lease, eviction grounds, fines
- Commercial property rent in Punjab to increase — Pakistan Observer — 16% sales tax on rent
- FBR Withholding Tax Rate Card 2026-27 — section 155 rates