Lahore District Real Estate News
and Property Updates

Lahore | ReNews Pakistan
The Punjab government has introduced a 16 percent General Sales Tax on rental properties across the province, as part of a new fiscal measure aimed at expanding the tax base and improving documentation in the property sector.
The new tax regime will come into effect from July 1 and will apply to rented non-residential buildings and other immovable properties. Under the policy, owners receiving rental income from commercial and other non-residential properties will be required to pay GST at the rate of 16 percent.
Officials said the measure is part of the provincial government’s broader strategy to bring rental income and immovable property transactions into the formal tax system. The tax will also apply to smaller residential properties that are rented out by owners, bringing a wider category of rental properties under the provincial tax framework.
Alongside the GST measure, the Punjab government has also revised the property tax system. Taxpayers registered before January 1, 2025, will receive a 20 percent cap on capital value assessment under the revised framework. The government has also announced a 5 percent discount for property owners who pay their property tax under the self-assessment scheme.
To facilitate taxpayers and improve collection efficiency, the government has introduced digital payment options through the E-Pay Punjab platform. Authorities believe that online payments will make the process more transparent, reduce manual handling and encourage timely compliance.
In cases of non-payment, surcharges will be imposed on a quarterly basis in addition to the original tax liability. The surcharge will increase after October 31, January 31, April 30 and July 31 each year.
The new policy has been notified across Punjab and is expected to have a direct impact on landlords, tenants and the commercial rental market. Property sector stakeholders are likely to closely monitor its implementation, particularly its effect on rental costs and business expenses.

Lahore | ReNews Pakistan
The Punjab government has initiated discussions with the World Bank to secure financial and technical support for its flagship affordable housing initiative, 'Apni Chhat Apna Ghar', in a move aimed at accelerating housing development and expanding homeownership opportunities for low-income families across the province.
The development emerged during a high-level meeting chaired by Punjab Minister for Housing and Urban Development Bilal Yasin, where senior officials, including the Director General of the Punjab Housing and Town Planning Agency (PHATA) and the Project Director of the Punjab Affordable Housing Programme, reviewed the progress and future roadmap of the initiative.
During the meeting, officials informed participants that the World Bank has shown keen interest in supporting the programme. Preliminary discussions have indicated the possibility of financial assistance amounting to approximately USD 100 million, which could significantly strengthen the province’s affordable housing efforts and enhance the programme’s implementation capacity.
According to officials, the proposed support would help accelerate the construction of housing units, improve project delivery mechanisms, and enable the government to reach a larger number of deserving families throughout Punjab.
Speaking on the occasion, Housing Minister Bilal Yasin highlighted the achievements of the Apni Chhat Apna Ghar programme, stating that eligible families are currently being provided interest-free loans of up to PKR 1.5 million to facilitate the construction of their own homes.
He noted that the initiative is already producing positive socio-economic outcomes by improving access to affordable housing, reducing financial barriers to homeownership, and enhancing living standards for underprivileged segments of society.
The minister reiterated the Punjab government’s commitment to addressing the province’s housing shortage and revealed that the programme aims to facilitate the construction of 100,000 houses annually. He said the initiative is designed to ensure that thousands of low-income families can access safe, secure, and dignified housing while contributing to broader economic development through increased construction activity and job creation.
The meeting also approved several restructuring measures intended to improve administrative efficiency and streamline programme implementation. Participants reviewed proposals aimed at expanding the initiative’s outreach and increasing the number of beneficiaries in both urban and rural areas of Punjab.
Officials expressed optimism that collaboration with international development partners such as the World Bank would further strengthen the programme and help achieve the government's long-term objective of providing affordable housing opportunities to a wider segment of the population.

Lahore | ReNews Pakistan
Lahore’s rapidly growing population has intensified pressure on the city’s infrastructure, housing planning and basic urban services. Experts say the pressure is not limited to one area, although its nature differs between the old city and Lahore’s expanding outskirts.
Residents of the old city are facing overcrowding, narrow streets and inadequate sewerage, water supply, parking and traffic management. Meanwhile, newly developed peripheral settlements are struggling with rapid land conversion, incomplete civic facilities and long commuting distances.
According to the Pakistan Bureau of Statistics’ 2023 census data, Lahore’s population has reached nearly 13 million. The district is also among Punjab’s leading destinations for migration from within the province and other parts of the country.
Urban planning experts say old Lahore is facing the most immediate and intense infrastructure pressure, as residential and commercial activity has become concentrated within limited space. In areas including the Walled City, Bhati Gate, Mochi Gate, Shah Alami, Akbari Mandi and adjoining localities, the subdivision of old houses, shared living by multiple families and increased commercial use have made water supply, drainage, sanitation and emergency access increasingly difficult.
On the other hand, the city’s outskirts are facing broader, long-term pressure. The expansion of new housing schemes and private residential projects along Lahore’s edges has rapidly converted agricultural land into built-up areas. Research studies indicate that while the spread of housing societies has expanded the city’s boundaries, the provision of roads, public transport, water, sewerage, schools, hospitals and employment centres has not kept pace.
The housing shortage has now taken a different form. The issue is no longer simply the limited number of homes; suitable housing is increasingly beyond the reach of low- and middle-income families. This has led to rising rents, overcrowding in small flats and homes, unplanned subdivision of old houses, the growth of informal settlements and housing located far from workplaces.
Pakistan’s overall housing shortfall is estimated at more than 10 million units, with urban, low-income and peri-urban households bearing the greatest impact.
Experts believe Lahore’s solution does not lie in new housing schemes alone. It also requires the rehabilitation of the old city, affordable housing, improved rental systems, vertical development, integrated public transport and advance planning for water, sewerage, parks, schools and healthcare facilities in new settlements.