Who can buy property in Pakistan?

Foreign nationals are generally allowed to purchase property, but they must comply with the rules set by the government, which can include restrictions on purchasing agricultural land and limitations on where properties can be bought.

For instance, foreign buyers are typically restricted from purchasing land in rural areas, and they can only buy property in certain urban locations. Additionally, foreign investors need to obtain approval from relevant authorities for the purchase, and they may be required to provide proof of their legal status, such as a valid visa or residency status.

Moreover, when making the transaction, foreigners must deal with the country's banking regulations, which include the use of foreign currency for the purchase and the need for approval from the State Bank of Pakistan in some cases.

Do the research

Investing in Pakistan’s real estate market offers substantial potential due to several factors. The country is home to a growing population, which increases the demand for housing and commercial properties. Pakistan’s strategic location as a gateway to Central Asia, the Middle East, and China, positions its real estate market for long-term growth. Major cities like Karachi, Lahore, Islamabad, and Rawalpindi are witnessing increasing urbanization, which is driving demand for residential, commercial, and industrial properties.

The government has also been focusing on improving the country's infrastructure, with projects like the China-Pakistan Economic Corridor (CPEC) contributing to enhanced connectivity and economic growth. Additionally, Pakistan’s real estate market remains relatively affordable compared to other regional markets, providing an opportunity for investors to acquire valuable properties at a lower cost, with potential for significant returns. 

Lastly, the real estate sector in Pakistan benefits from favorable tax policies for investors, and its diversity in investment options, from luxury homes to commercial properties, allows for flexible investment strategies. Despite occasional political and economic challenges, the market offers resilience and long-term capital appreciation potential.

Below are some sought-after destinations for real estate investment in Pakistan:

• Karachi - As Pakistan’s financial and commercial capital, Karachi offers vast opportunities for both residential and commercial real estate investment. The city’s vibrant lifestyle, bustling markets, and extensive port facilities make it a key destination for property investors. Neighborhoods like Clifton, DHA, and Korangi are highly sought after, with a diverse range of properties available, from luxury apartments and villas to commercial offices. Karachi's dynamic economy and consistent population growth drive demand for both short-term rentals and long-term investments.
• Lahore - Known for its cultural heritage and growing economy, Lahore has become a hotspot for real estate investment, particularly in areas like DHA, Bahria Town, and Gulberg. The city combines modern living with traditional charm, offering opportunities for residential developments, commercial spaces, and mixed-use projects. Lahore's expanding middle class, along with its growing infrastructure projects such as the Orange Line Metro and Lahore Motorway, make it an attractive choice for investors looking for long-term returns.
• Islamabad - As the capital city of Pakistan, Islamabad offers a high standard of living and a stable political environment. Popular neighborhoods like F-10, G-5, and DHA Islamabad cater to investors seeking luxury homes, commercial properties, and investment-grade land. Islamabad’s well-planned urban layout, green spaces, and growing infrastructure make it an appealing destination for both domestic and international investors seeking capital appreciation and stable rental yields.
• Rawalpindi - Adjacent to Islamabad, Rawalpindi is rapidly developing and offers affordable real estate options in areas like Bahria Town, DHA Rawalpindi, and Satellite Town. As a key military and administrative hub, Rawalpindi benefits from its proximity to the capital and its continued growth in residential and commercial sectors. This makes Rawalpindi a great option for investors looking for more affordable property options compared to Islamabad, with the potential for higher rental yields.
• Peshawar - Peshawar, with its rich history and growing economy, is gaining attention as an emerging real estate market. Neighborhoods like Hayatabad and the newly developed areas near the Motorway offer opportunities in both residential and commercial properties. With Peshawar’s expanding infrastructure and increasing urbanization, the city presents an attractive opportunity for long-term investors looking for early entry into an expanding market.
• Faisalabad - Known as the "Manchester of Pakistan" for its textile industry, Faisalabad is becoming a growing destination for real estate investment. Areas like the Canal Road, and Faisalabad International Airport’s surrounding regions are emerging as new hot spots for residential and industrial developments. Investors looking for affordable opportunities in one of the country’s major industrial cities may find great prospects in Faisalabad's expanding residential, commercial, and industrial real estate sectors.
• Multan - With its strategic location in Punjab, Multan has seen rapid growth in recent years. Areas like DHA Multan and Bosan Road are becoming more popular among investors. The city’s booming trade, industrial activities, and the expansion of road networks contribute to its growing real estate market. Investors seeking opportunities in emerging markets with potential for high growth should consider investing in Multan.

Where to find properties online:

• https://www.zameen.com/
• https://www.lamudi.pk/

Financing

Foreigners can obtain mortgage loans in Pakistan, particularly through the "Roshan Apna Ghar" scheme, which is designed for Non-Resident Pakistanis (NRPs). This initiative allows NRPs to invest in residential real estate in Pakistan by offering financing options in both conventional and Shariah-compliant formats.

To be eligible for this financing, applicants must hold a valid National Identity Card for Overseas Pakistanis (NICOP) and maintain a Roshan Digital Account (RDA) with a participating bank. The financing is available for various purposes, including the purchase of completed residential properties, house construction, land purchase with subsequent construction, and property renovation. The financing amount can range from PKR 500,000 to PKR 100,000,000, with repayment tenures extending from 3 to 25 years.

It's important to note that the financing terms, including interest rates and eligibility criteria, may vary among participating banks. Therefore, it's advisable for potential borrowers to consult directly with the bank of their choice to understand the specific requirements and benefits associated with the "Roshan Apna Ghar" scheme.

Due Diligence and Sales Contract 

In Pakistan, conducting thorough due diligence is a critical component of the real estate transaction process to ensure the property's legal status and identify any potential issues. This process involves verifying the property's title to confirm the seller's ownership and checking for any encumbrances, such as mortgages, liens, or legal disputes that could affect the transaction. Additionally, it's essential to review zoning regulations, building permits, and any environmental concerns that may impact the property's value or intended use.

Once due diligence is satisfactorily completed, the parties proceed to draft a sale and purchase agreement. Under Pakistani law, this agreement must be executed in writing and notarized to be legally binding. The contract should contain essential provisions, including details of the parties, a specific description of the property, the purchase price, and any other negotiated terms. The parties also generally execute an instrument of transfer and acceptance in relation to the real estate.

Following notarization, the transfer of ownership must be registered with the relevant land registry office, such as the Sub-Registrar's office, to be legally recognized. This registration is a mandatory condition for the validity of the transferred title. The notary certifying the sale and purchase agreement typically handles the submission of the necessary documents for registration.

Property Buying Costs and Taxes in Pakistan