Karachi’s High Gains: Residential plots in premium areas like Clifton and DHA have seen surges between 25% and 50% over the last two years. Apartments in prime locations (e.g., Bath Island) are now touching PKR 75–80 million.+1

Vertical Living Shift: Due to the soaring cost of land and construction, there is a massive transition toward apartments and townhouses. Developers are prioritizing “compact living” to maintain affordability for middle-income families.+1

Revised Valuation Tables: The Federal Board of Revenue (FBR) issued new valuation tables effective February 2, 2026, setting fair market values for superstructures in Islamabad at approximately PKR 3,000 per sq ft for newer buildings.

Construction Costs: Building a standard A-grade grey structure in Lahore or Islamabad currently costs between PKR 2,800 and PKR 3,450 per sq ft.

Interest Rate Impact: With the policy rate currently at 10.5% (and expected to dip further), bank deposits are becoming less attractive, prompting investors to move liquidity back into real estate.