Country PK Cost of Living Analytics

Living expenses and utilities

Basic Utilities (85m²)

$82

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

$14

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

$173

Average monthly net salary after tax

Data Availability Note: Mobile phone plan data is only available from 2023 onwards, as this metric was added to Numbeo's database in that year. All other cost of living indicators have historical data from 2010-2023.

Basic Utilities (85m²)

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

Average monthly net salary after tax

Additional Insights

Expert analysis of Country PK Cost of Living trends and investment implications

Market Overview

Pakistan's real estate market presents a mixed investment landscape with potential for significant returns, driven by urbanization and population growth, yet tempered by economic volatility and regulatory challenges. The housing sector has seen appreciation slightly outpacing GDP growth, though high inflation and interest rates could impact affordability and financing options. Investors should weigh the opportunities presented by urban demand against fiscal and regulatory risks.

Key Findings

Data-driven insights

•Since 1957, house prices have grown at an average annual rate of 6.5%, slightly outpacing the GDP growth rate of 5.8%, indicating a resilient property market.
•Rental yields in major cities like Karachi and Lahore range from 6% to 8%, while average interest rates hover around 11%, challenging positive cash flow for leverage-driven investments.
•Annual population growth of 2.4% has consistently outpaced housing supply, creating a persistent demand-supply gap that supports long-term property value increases.
•Property taxes and transaction costs in Pakistan can reach up to 10% of property value, significantly impacting net returns for investors.

Market Trends

Historical patterns

•Urbanization is accelerating, with over 40% of the population expected to live in urban areas by 2024, increasing demand for urban housing.
•Economic policies are shifting towards more foreign investment incentives, though currency volatility remains a concern.
•Regulatory changes are being implemented to curb speculative investments, impacting short-term market liquidity.

For Investors

Actionable takeaways

•Top 3 opportunities: High-demand urban areas in Karachi and Lahore, leveraging rental yields in suburbs, investing in underdeveloped areas poised for urban expansion.
•Top 3 risks: Currency devaluation impacting returns, high transaction costs, and bureaucratic hurdles in property registration.
•Best property types: Studio and 1-bedroom apartments in city centers for rental yield, family homes in suburbs for capital appreciation.
•Market timing suggestion: Consider gradual entry to capitalize on urbanization trends, with a focus on income-generating properties to hedge against inflation.

Market Context

Compared to similar emerging markets like India and Bangladesh, Pakistan offers competitive rental yields but faces higher economic volatility. The real estate sector is less mature, providing opportunities for early entrants but also demanding careful navigation of regulatory and fiscal challenges.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.