Why Property Prices in Pakistan Are Falling – Should You Buy Now or Wait?

The real estate sector in Pakistan has always been a strong investment avenue. But in 2024–2025, many investors and home buyers have noticed a downward trend in property prices across major cities like Islamabad, Lahore, Karachi, and Rawalpindi. This raises a critical question: Is this the right time to buy property, or should you wait?

In this blog, we’ll explore the factors behind the falling prices, future predictions, and practical advice for both buyers and investors.

📉 Current Property Price Trend in Pakistan

Over the last few years, Pakistan’s property market has gone through highs and lows. After the pandemic boom (2020–2021), prices soared due to speculative buying, overseas investments, and housing demand. However, from 2023 onwards, the trend started to reverse.

Below is a chart showing the property price trend index from 2019 to 2025:

As the graph shows:

• Prices rose sharply from 2019 to 2022.
• 2023–2025 saw a correction due to economic instability, high inflation, and low buyer demand.

🏦 Key Reasons Why Property Prices Are Falling

1. Economic Slowdown

Pakistan’s economy has faced high inflation, currency depreciation, and political instability. This has reduced people’s buying power.

2. High Interest Rates

Banks have increased markup rates on loans. Financing a home has become more expensive, leading to reduced demand.

3. Oversupply in Some Areas

Developers launched too many projects in cities like Islamabad and Lahore. With fewer buyers, oversupply has pulled prices down.

4. Overseas Pakistanis Sending Less Money

Remittances from abroad, once a major fuel for property demand, have slowed down. Many overseas investors are also shifting to safer markets like Dubai or Turkey.

5. Uncertainty in Government Policies

Frequent tax changes, stricter documentation requirements, and lack of clear housing policies have shaken investor confidence.

📊 City-Wise Property Trends in 2025

Different cities in Pakistan are showing different price movements. Here’s a breakdown:

• Islamabad: Stable but slightly down in CDA sectors. Housing societies outside city limits have seen bigger drops.
• Lahore: DHA and Bahria Town have slowed, but central locations remain resilient.
• Karachi: Some high-rise projects are struggling; well-established areas like Clifton still hold value.
• Gwadar: Long-term potential but currently stagnant.
• Multan & Faisalabad: Moderate correction but demand for smaller plots continues.

💡 Should You Buy Now or Wait?

This is the million-dollar question every buyer is asking. Here’s a breakdown:

✅ Reasons to Buy Now

• Prices are at their lowest in years.
• Sellers are more flexible, offering discounts.
• Long-term investment in prime locations will eventually pay off.

❌ Reasons to Wait

• Economy is still unstable.
• Prices may drop further in the next 6–12 months.
• New government housing schemes may create cheaper options.

Expert Tip: If you are buying for long-term investment or personal use, now is a good entry point. But if your goal is short-term flipping, it may be wise to wait.

🏗 Construction Costs vs Property Prices

Another factor to consider is construction cost. Even though property prices have fallen, building materials like cement, steel, and labor are still expensive. This means plots may be cheaper, but building a house remains costly.

(We can include another graph here: Construction cost comparison for 5 Marla vs 10 Marla house in 2025)

🌍 Impact of Geopolitical Tensions

Events like India-Pakistan tensions also affect property demand. Whenever uncertainty rises, investors shift money to gold, dollars, or overseas property instead of local real estate.

🕌 Urdu Insight (اردو میں تجزیہ)

پاکستان میں پراپرٹی کی قیمتیں مسلسل کمی کا شکار ہیں۔ اس کی سب سے بڑی وجوہات معیشت کی غیر یقینی صورتحال، زیادہ شرح سود، اور سرمایہ کاروں کے اعتماد میں کمی ہیں۔ سوال یہ ہے کہ ابھی خریداری کی جائے یا انتظار کیا جائے؟

اگر آپ طویل المدتی سرمایہ کاری یا ذاتی رہائش کے لیے خرید رہے ہیں تو یہ وقت بہتر ہے۔ لیکن اگر آپ قلیل مدتی منافع کے لیے سرمایہ کاری کرنا چاہتے ہیں تو بہتر ہے کہ کچھ مہینے انتظار کریں۔

📌 Conclusion

The property market in Pakistan is going through a correction phase. For smart buyers, this is an opportunity to enter at lower prices. For cautious investors, waiting a few months could bring even better deals.

👉 At Maalikan.com, we bring you the latest property listings, market trends, and investment advice so you can make the right decision.

🔑 Key Takeaways

• Prices are falling due to economy, oversupply, and policy uncertainty.
• Islamabad, Lahore, and Karachi remain the safest bets for long-term investors.
• Construction costs are still high, so plan wisely.
• Buy now if your goal is long-term; wait if you’re looking for short-term gains.

Maalikan

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