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Will There Be a Correction or a Bubble in Bahria Town Lahore?

The property market of Pakistan and Bahria Town Lahore specifically is under the questioning. In 2025, the evolving economy, increase in inflation rates, and a volatile investor attitude have brought the concerns. Is it a normal corrective to some price drops or is it a silent inflation of a frothy bubble that is just about to blow up?

A detailed overview of prices, segment level (5 Marla, 10 Marla, 1 Kanal; apartments, plots, houses), high-probability locations (Golf View Residencia, Safari Villas and Overseas Enclave), risk and good side have been provided here.

Sector-Wide Market Prices: Hard or Flat?

As per the house price index conducted by Zameen June 2025:

The average house size of 5 Marla is a little more than PKR 2.16 Crore with a 2 percent growth in the last year

Averagely, the houses have PKR 3.76 Crore 10 Marla which represents a slight increase of 4 percent on year-on-year basis

Kanal houses are at an average property price of PKR 7.72 Crore with a yearly growth rate of around 2 percent.

When this slackening is contrasted with years of double-digit increases, it leads one to believe that the market is cooling down instead of crashing down and it is more of a correction than a bursting of a bubble. The average increase in housing prices in Lahore was up by 7 percent per square foot per year over the whole city.

Segmentation: 5, 10 Marla & 1 Kanal floors and plots and houses

5 Marla: No, not Crashing Down Yet

The 5 Marla plot rates in Bahria Town are between 70 Lakh PKR to 90 Lakh PKR and in some unpopular blocks, the rate is 50 Lakh PKR. This size of houses sell at around PKR 1.70-3.15 Crore based on a finish and location. The gradual increase in this indicates rationalization of prices as opposed to rushing of sales.

10 Marla: The Demand Ventilator

The majority of 10 Marla plots are sold between PKR 80 Lakh and PKR 2.25 Crore and they are largely dependent on the block, as well as orientation. This kind of villa is typically sold between PKR 3.50 and 5.50 Crore but there are less sales in the higher category.

Luxury Level and 1 Kanal: Overheated or Satiated?

The top-end plots in areas such as Overseas A or C or Safari Villas cost between PKR 2.6 and 5 Crore per plot, and the completed house costs up to 7 Crore to 12 Crore. An appreciation, in this case, is not high, showing that there are already saturations in this market and to suggest that some are in the bubble would perhaps not be true since the gradual natural increase in them is an aspect of pessimistic ideologies about the same.

Spotlight on Areas Sectors and Sub-Projects

Offshore Enclave & Overseas B

The rates of plots (10 Marla) are PKR 1.51.9 Crore and 1 Kanal below prime locations can rate up to PKR 2.6 to 3.5 Crore. The cost of luxury houses in Overseas A block has hit PKR 5.9 to 7.8 Crore. However, the growth has slowed down yet the demand is steady with the high-end end-users.

GVR (Safari Villas & golf view Residencia)

Mid-tier blocks at GVR phase-one are being sold at PKR 1.3-1.75 Crore per 5 Marla and 10 Marla plots respectively. The Safari Villas starts at a price of around 2.7 Crore and goes further upwards. All these sub-markets maintain an enviable status quo and they are not susceptible to wide trimming.

Market Drivers Associated with Macro Factors

Recession compared to Stagnation

The inflation and mortgage rates are drag weights, but the increased remittance rates and once again the governmental support of housing have stabilized the long term view of investors. According to analysts, instead of collapse, modest cooling is desirable given the shift currently experienced by the investors to ready properties and end-user demand.

Pressure on the files & Speculation

Unrealistic price bubbles in non-possession lines have been burst by government crackdowns of speculative so called file markets. The fully documented ownership by the developer, gated infrastructure and escrowed transfer provide the Bahria Town immunity against the speculative pressures created in unregulated societies.

Does it look like a Bubble or a Correction? Reading the Warning Signs

What Is Indicating the Adjustment:

The growth rates have reduced- but still the deals are being made at fair prices. None of the plots and the house prices have collapsed but have plateaued or increase at 2-5 percent yearly. Investment demand is high in the less dangerous investment regions that are ready to be possessed.

What Could Be an indication of Bubble Behavior:

High-end residential properties (beyond PKR 7 Crore) have been inactive but have very high asking prices. The sales prices are higher than the actual buyer interest in some low demand blocks- meaning overpricing in remote spots.

Opinions of the Real Estate Agents and Investors

In Lahore, the professional brokers of real estate report:

Customers are showing more preference in ready to move plots and houses compared to file investments. Deals are concentrated in 5 and 10 Marla houses with the contemporary finish-villas of moderate prices appreciate quickly. Safari, GVR, and Overseas investment group activity is stable and has lower quick flip rates–indicating deeply rooted stable usage as opposed to the manic essence of bubbles.

The prices of plots: The average price of the land with 5 Marla is PKR 70-90 Lakh; 10 Marla is up to PKR 2.25 Crore; 1 Kanal PKR 1.65-5 Crore based on block and development status.

  • With 5 Marla, up to a maximum of 2 percent is added in a year which is not much.
  • Up to 4 percent (stable demand) of houses are built on 10 Marla.
  • 1 Kanal properties increase 2%- only long term holding mechanism.

Opportunity and Risk Direction

These figures do not indicate the alarming levels of decrease but stable leveling that implies the hallmarks of a correcting market, rather than a bursting market.

Even the currently developing blocks (such as the GVR yet to be completed phases, Atlas Crescent) are unlikely to keep pace.

Risk Considerations:

  • The luxury inventory can be stagnant in case of poor economic mood.
  • Blocks that are still under development (e.g. GVR early phases, Atlas Crescent) may not keep up.
  • Transaction velocity may further slow down because of rate-sensitive buyers.

Investment Opportunities:

10 Marla homes and plots in affordable sector and 5 Marla homes and plots in mid-tier sectors continue to be in demand in terms of rental income and capital uplift gradually.

Other developments such as Golf View Residencia, Safari Villas and Overseas Enclave continue to record positive end-user demand.

Less conversion time is provided by renovation and occupancy-ready investments to rental income.

On the last, Correction, not Collapse

The real estate sector in Bahria Town Lahore is cooling down and not crashing. Far-from-hot years of outsize expansion point to correction in important areas-not such systemic bubble-top bursting. The demand also remains strong in the occupied, documented communities among both the long term residents and the end users.

There is still risk of the luxury pricing overhang and speculative investment on files, though it is not as prevalent anymore. In case of now being interested to invest, concentrate only on real asset transactions (plot or constructed houses), avoid speculative buying and in line also on the holding period, namely 2-5 years to recover or gain more to the upswing. The best kind of bijective strategy involving both a rental yield and an increase in the value of assets varies.

Projects We Deal in:

Many residential and commercial societies in Pakistan are evaluated carefully to help our clients make the better decision. Pakistan Property Services helps the clients invest in projects with good prospects that depend upon the parent company, developers, location, payment plan, amenities they can have in the desired project.

Lahore:

Lahore is the cultural and economic hub as well as the provincial capital of Punjab. The city is well known for its huge economic opportunities in different sectors. People come from different areas to grab these opportunities and have a residence here. Below the list of some of the top Projects in Lahore:

Karachi:

Bahria Town Karachi is a benchmark within the landscape of Karachi with its world-class excellent-planned society. This society is sketched with an area concept to supply outstanding lifestyle facilities to its residents and can introduce new benchmarks of community development in Karachi. Below the list of some of the top Projects in Karachi:

Islamabad:

Islamabad is nestled against the backdrop of the Margalla Hills. It is a modern, planned city with wide tree lined streets, large houses, elegant public buildings and well-organized bazaars. It is however; always under construction to improve transportation or develop new housing areas for its growing population. The walkways are shaded, safe, and separated from the traffic by rows of flame trees, jacaranda and hibiscus. Roses, jasmine and bougainvillea fill the parks, and scenic viewpoints show the city to its advantage. Below the list of some of the top Projects in Islamabad:

  • Gulberg Greens Islamabad
  • Al Hafiz Grand Shopping Mall Gulberg Islamabad
  • Naval Anchorage Islamabad
  • Nexus Mall Islamabad
  • Mall of Arabia Islamabad
  • Discovery Gardens Islamabad – All You Need to Know
  • Nexus Mall Islamabad – Bahria Town Islamabad
  • Park View City Islamabad
  • Verify Land Status from Property Verification Centre in Islamabad

Rawalpindi:

Rawalpindi is an important administrative, commercial, and industrial centre. Its industries include locomotive works, gasworks, an oil refinery, sawmills, an iron foundry, a brewery, and cotton, hosiery, and textile mills; it also produces shoes, leather goods, pottery, newsprint, and tents. Below the list of some of the top Projects in Rawalpindi:

  • Blue World City Rawalpindi
  • Citi Housing Rawalpindi
  • Faisal Town Rawalpindi

Gwadar:

Gwadar, town and seaport, southwestern Balochistan province, southwestern Pakistan. Located on the sandy Nuh headland that juts southward into the Arabian Sea, the town is an important fishing (sardines and sharks) and trade centre. Below the list of some of the top Projects in Gwadar:

  • Naval Anchorage Gwadar
  • Canadian City Gwadar
  • Gwadar Golf City

Suggestions:

We can see that the Pakistan Real Estate Forecast suggests investing more in this market as it promises a huge profit in the coming future. The investors should purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough.

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