Lahore’s rising rent forces middle-class families out of central neighbourhoods

Rising rents in Lahore’s major housing societies and central neighbourhoods are forcing middle-class families, salaried workers and tenants from other cities to move towards suburban areas where smaller homes are available at comparatively lower rates.

Property website data showed that by March 2026, average house rents had reached around Rs281,000 in DHA Lahore, more than Rs600,000 in Gulberg, Rs224,000 in Johar Town and Rs165,000 in Bahria Town.

In some phases of DHA, monthly rents for one-kanal houses have increased to between Rs300,000 and Rs400,000, while five-marla houses are now being rented for more than Rs100,000.

Smaller houses in established neighbourhoods also remain expensive. In Faisal Town, Iqbal Town, Samanabad and Muslim Town, rents for two-marla houses range from Rs25,000 to Rs35,000 per month, while three-marla houses are available for between Rs60,000 and Rs75,000.

Real estate market participants attributed the increase to inflation, higher construction costs, rising property values, investment by overseas Pakistanis and limited availability of affordable housing.

They said demand for rental property in Lahore continued to rise, while lower-cost options for middle-income households were becoming increasingly limited.

Tenants have also reported sharp increases in rents over the past two years, with some flats nearly doubling in price and monthly house rents rising by tens of thousands of rupees within a year.

As a result, more families are shifting to LDA Avenue, Raiwind Road, Jubilee Town and Bahria Orchard, where smaller houses and comparatively lower rents are attracting tenants priced out of central and upscale areas.

Property consultants said rents were generally determined by location, demand, security, infrastructure and access to facilities.

Pakistan does not have a comprehensive system for regulating rents in private housing societies, where most agreements are settled directly between landlords and tenants.

Under the Punjab Rented Premises Act, tenancy matters are regulated, but the government does not fix rental prices in the private market. Rates therefore vary across neighbourhoods according to supply and demand.

Property experts have suggested that rent-control measures and affordable housing policies used in other countries could be considered for low- and middle-income households in Lahore.