Best Places to Buy Rental Properties in Lahore

Rental Property

One of Pakistan’s most lucrative business opportunities – The real estate business remains the most popular option for safe and secure investments. With a booming population and an ever-increasing demand for property, it comes with no surprise that this market accounts for a significant chunk of Pakistan’s GDP.

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Lahore, being the second-largest city, provides some of the best real estate investment opportunities the country offers. With extensive infrastructure development and access to essential services, the city has turned into the country’s largest real estate hub. Not only has the property value appreciated over time, but rent has ballooned as well, making the market highly favorable for renters.

However, before stepping into the business and buying a rental property, the first step involves understanding what a suitable rental property is. This blog brings you an in-depth review of what makes a rental property superior and where you can find such places in Lahore.

Factors that Make a Good Rental Property

Not all properties are created equal – some excel in providing the finest to tenants while others lack essential services or may lag in other aspects. For a rental property to be suitable, it must have certain features that offer precedence over other properties. Following are some of the critical elements of an excellent rental property:


One of the most significant elements that affect a property’s value is the neighborhood it is based in. The type of locality will determine the returns on the property. Areas with poor development and impoverished services will mean fewer tenants and result in lower rent and lower returns. Picking a locality with good infrastructure and essential amenities should be your focal point while searching for rental properties.

Commercial Areas:

Property values are correlated to the commercial activity in the locality, meaning houses that are close to commercial areas are sure to bring in profitable returns. Properties in or near the economic centers tend to be expensive but are also worth the investment due to higher rent and better returns. Properties further away from the neighborhood’s commercial areas usually have lesser value and offer less promising returns. Therefore, you should always opt for a rental property near the busiest areas of town.


Tax rates on property vary from area to area. Each locality has its tax rate on property, and ideally, you should look for rental properties in areas with low property taxes, as rent and returns are heavily affected by tax rates. Areas with lower rates serve as better options for finding properties with good returns.


Access to essential amenities can raise a property’s returns by multiple folds. Facilities such as gas, electricity, and a clean water supply are a must as no tenant would be willing to reside in a place that lacks these basic amenities. Other facilities such as parks and recreational areas nearby are a bonus to the property’s value, giving residents a place to unwind and de-stress. However, for a neighborhood to be fully equipped with essential services, it must have educational institutes and healthcare facilities available so that residents will not have to rely on surrounding localities for these services. Having a complete package with these amenities will undoubtedly result in better value and better returns on your property.

Listings in the Area:

Areas with their neighborhood relatively extensive listings signify that a community may decline or not provide any value to residents. Fewer tenants mean renters will have to lower rent to attract potential tenants. Therefore, searching for properties in areas with fewer listings and high demand will be gainful, resulting in higher returns.

Average Rent:

An average rent already established in an area signifies that you will have to keep your rent within that range. If it exceeds the middle capacity, tenants will prefer other houses in the locality, leaving your property vacant. Finding a rental property in an area with a high average rent should be ideal since it ensures higher returns. Also, a higher average rent is necessary so that essential costs such as maintenance, insurance, and other minor issues can easily be covered through rent.

Future Development Projects:

An area with construction and development projects underway is available for buying rental properties. It ensures that property values in the locality will increase, and returns will be lucrative. However, the property should not be conjoined to long-term construction sites, which will push away potential tenants due to the inconvenience. Keep an eye out for city plans of different localities to see where development projects are underway, as these areas will eventually become buzzing neighborhoods with several abundant opportunities.

Market Trends:

Market trends affect a property’s value immensely. Neighborhoods trending in the real estate market should be prioritized due to their higher value. Market trends are always subject to change, which is why estimates and future forecasts should be followed to ensure that the best decision is made in terms of market value.

Best Places to Buy Rental Properties in Lahore:

Considering these points, Lahore offers several areas that check out all of these factors. With housing societies on the rise and several development projects underway, many localities in the city offer rental properties that comprise all of these attributes.

Johar Town:

One of Lahore’s finest localities – Johar Town, is one of the top contenders for the best rental properties in the city. With an upscale lifestyle and limitless plentiful amenities, the society offers the best returns to the town. Extensive development projects throughout the locality have prompted property values to skyrocket, making it one of the best places for rental properties.

With a prime location around two of the city’s major roadways, Canal Bank Road and Khayaban-e-Firdousi, renters offering a house for rent in Johar Town Lahore can benefit from the ever-expanding value of the locality.


One of Lahore’s master-planned societies, Valencia Town, is set to redefine the city’s residential landscape. With well-planned infrastructure and splendid services, the society serves as one of the best places for rental properties in Lahore. Situated between two of the city’s busiest highways, Lahore Ring Road and Raiwind Road, the locality enjoys increasing property values from which renters can benefit.

The locality is known for its premier services ranging from essentials to luxuries, which is why putting up a house for rent in Valencia Town Lahore can be a lucrative investment opportunity.

DHA Lahore:

Renowned for its elegance and Grandeur – DHA Lahore is the city’s premier housing society that has redefined Lahore’s living standards. Located near Badshahi Mosque Lahore, the society is known for its complex infrastructure, impressive services, and a prime location in the city’s heart, the community is one of the best places for you to find rental properties with profitable returns.

Development projects and high demand have established an increased property value in the locality, meaning those offering a house for rent in DHA Lahore can avail profitable returns on their properties.


Knowing what makes a rental property good is the first step before stepping into the real estate business. Lahore has several locations that offer such rental properties. However, these societies are the prime locations that provide some of the best returns in the city. For more information, visit


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