Cost of Living and Housing Trends in Islamabad

The capital city of Pakistan Islamabad is also experiencing a significant increase in the cost of living and prices of houses. The city has become very costly to the locals and newcomers due to its designed sectors and beautiful scenery. It is now between PKR 100,000 to PKR 180,000 a month to rent a two bedroom apartment and PKR 190,000 to PKR 317,000 a month to live in a moderate family. The expense of construction materials and utilities has put an extra burden on the same and affordability has become a further issue to the middle-income households. Moreover, the cost of a 5-marla residential has increased to approximately PKR 27.7 million, which shows how the house market of Islamabad is steadily increasing.

Housing Market Snapshot

Metric	Average Value
Monthly Rent (2-Bed Apartment)	PKR 100,000 – 180,000
Monthly Living Cost (Family)	PKR 190,000 – 317,000
5-Marla House Price	PKR 27.7 million
Property Price Growth	4%
Housing Unaffordability Rate	38%
Construction Material Cost Rise	Cement: PKR 550 → 1,350 per 50kg

Factors Driving Rising Costs

The increase in housing cost is sharp because of inflation, unavailability of supplies and increased construction cost. Developers are having a hard time keeping pace with demand with cement, steel and other materials almost doubling their prices since 2020. Less availability of land in prime areas and population increase has also added to the price escalation. The buyers of luxury goods do not experience significant declines but the middle-income people still find it hard to afford luxury items. Government programs for the initiation of affordable housing initiatives and financing models may help to stabilize the market; however, there is still a lot of policy homework that is required to make the Islamabad housing market more inclusive and sustainable.