Rental yield in Lahore 2026 ranges from 2.5% to 7% gross annually depending on society, size, and how aggressively you priced the asset at purchase. The headline number obscures wide variation — the same PKR 5 crore can produce a 6% yielding asset in one society and a 3.5% yielding asset in another. This guide breaks down current yields across Lahore's major societies, what drives the gap, and how to size up the right rental investment.
All figures come from verified active rental listings and recent closed deals on OpenHouse.pk through April 2026.
What rental yield actually measures
Gross rental yield = annual rent ÷ purchase price. It ignores costs (maintenance, vacancy, agent commission, property tax) and tax.
Net rental yield = (annual rent − operating costs − vacancy allowance − tax) ÷ purchase price. This is the number that matters for investment decisions.
For Lahore rentals in 2026, the net is typically 1.0 — 1.5 percentage points below the gross. A 6% gross yield translates to roughly 4.5-5% net.
Current yields by society (5-marla and 10-marla houses)
| Society | 5-marla gross yield | 10-marla gross yield |
|---|---|---|
| DHA Phase 5 | 5.5 — 6.5% | 4.5 — 6% |
| DHA Phase 6 | 5 — 6% | 4.5 — 5.5% |
| Bahria Town Sector E | 6 — 7% | 5 — 6.5% |
| Gulberg III | n/a (very few 5-m) | 2.5 — 3.5% |
| Johar Town | 5.5 — 6.5% | 4.5 — 6% |
| Model Town | n/a | 3 — 4% |
| Park View City | 6 — 7% | 5 — 6.5% |
Two patterns stand out:
- Smaller plots yield more. 5-marla houses consistently out-yield 10-marla in the same society by 0.5-1.5 percentage points.
- Newer/peripheral societies yield more. Bahria Town, Park View, and DHA Phase 9/Defence Raya all yield above DHA Phase 5/6 because purchase prices are lower relative to achievable rent.
Why Gulberg yields are so low
Gulberg houses yield 2.5-4% because the land value drives the purchase price, not the construction. A 1-kanal Gulberg house priced at PKR 22 crore commands roughly PKR 700,000-900,000 monthly rent. That is PKR 8-11 lac of annual rent on a PKR 22 crore asset = 3.5-5% gross.
Investors don't buy Gulberg for yield. They buy for land-value appreciation and the redevelopment thesis.
The four factors that move yield up or down
1. Furnished vs unfurnished
Furnished houses command 30-50% rent premium for similar plot size. The capital cost of furnishing (PKR 8-15 lac for a 10-marla) typically recovers in 18-30 months, then pure additional yield.
2. Proximity to top schools
A 10-marla DHA Phase 5 house within walking distance of LGS Defence or Beaconhouse Defence commands 15-25% rent premium over a house 10 minutes away. The tenant pool (families with school-age children) pays for proximity.
3. Backup power and water
Standby generator + water boring (tubewell) commands 10-15% premium during summer months. In areas with frequent load-shedding (less common in DHA, more common in Bahria periphery), this is non-optional.
4. Tenant type
Corporate lease (3-5 year lock-in): stable yield, often slightly below market rent. Expat lease (1-year with diplomatic security required): premium rent, longer void periods. Family lease (1-2 year typical): market rent, moderate void. Multi-tenant share / hostel use: highest gross yield but management-intensive and society approval issues.
What to actually buy for yield
If your primary goal is rental income (not capital appreciation):
Buy 5-marla in DHA Phase 5/6 or Park View City. 5.5-6.5% gross yield, broad tenant pool, short void periods, clean management.
Skip: 1-kanal in any premium society (yield rarely above 4%), Gulberg/Model Town (yield below 4%), and properties without backup power.
Consider but be careful with: Bahria Town 10-marla (good headline yield but longer voids). Park View City (newer, less proven rental track record but trending up).
If your primary goal is capital appreciation (with rental as bonus):
Buy 10-marla or 1-kanal in DHA Phase 6/7/8 or Defence Raya. Lower yield but stronger 10-year appreciation thesis. Yield offsets carrying cost; capital growth is the real return.
For full pricing context, see our Lahore property prices 2026 market report and 5 marla vs 10 marla guide. For active rental-ready inventory, browse verified OpenHouse.pk listings.
Verified Data Update (May 2026)
Based on OpenHouse.pk's verified active and sold inventory as of May 2026 — every row physically inspected, sentinel-price outliers removed:
| Society | Size band | P25 — P75 asking | Verified median | Sample size |
|---|---|---|---|---|
| DHA Lahore (all phases) | 5-marla | PKR 2.75 — 3.30 cr | PKR 3.10 cr | 246 |
| DHA Lahore (all phases) | 10-marla | PKR 5.13 — 6.50 cr | PKR 5.93 cr | 142 |
| DHA Lahore (all phases) | 1-kanal | PKR 9.83 — 16.00 cr | PKR 12.00 cr | 343 |
Data refreshed nightly. For live verified inventory, browse openhouse.pk/listings.
