Real Estate Update – Rawalpindi & Islamabad (18 August 2025)

The real estate sector of Rawalpindi and Islamabad continues to witness strong momentum in August 2025, driven by large-scale infrastructure development, policy reforms, and growing investor confidence. While there are no major breaking news updates today, the twin cities remain at the heart of Pakistan’s real estate transformation.

Infrastructure Developments Driving Growth

1. Rawalpindi Ring Road
   The much-anticipated 38 km Rawalpindi Ring Road project is progressing steadily and is now more than halfway complete. Expected to finish by December 2025, this road will ease congestion and significantly boost property demand along its corridor, particularly in housing societies and commercial zones connected to the route.

2. Margalla Avenue
   Operational since 2023, this 33 km six-lane expressway is already reshaping connectivity between Islamabad’s sectors and adjoining highways. Its integration with the Ring Road will further enhance property values in key locations.

3. Dadhocha Dam
   With water scarcity being a growing concern, the Dadhocha Dam project near Rawalpindi promises to deliver 25 million gallons per day upon completion. This is expected to support sustainable urban development and secure long-term housing demand.

4. Emerging Landmark Projects

   • J7 Emporium, Islamabad – The 31-storey mixed-use development in B-17 is set to become the tallest of its kind, offering retail, luxury residences, offices, hotel suites, and a rooftop infinity pool.

   • The Health Park – A 625-acre mega healthcare and education precinct near Islamabad International Airport under a REIT model, which will attract both local and overseas investors.

Market Trends – August 2025

• Strong Investor Sentiment
  Islamabad and Rawalpindi continue to attract investors due to their modern urban planning, security, and quality lifestyle. Demand for both residential and commercial projects remains healthy, especially in Bahria Town, DHA, and new housing schemes along Ring Road.

• Government Policy Support
  Ongoing discussions around tax reforms, including possible removal of Federal Excise Duty (FED) on real estate transactions, may make property buying and selling more cost-effective.

• Oversupply Concerns
  While demand is strong, oversupply in residential plots is becoming noticeable in some areas due to the rapid launch of new societies. Careful due diligence is crucial before investing.

• High Returns in Commercial Real Estate
  Commercial hubs in Bahria Town Phase 7, DHA Islamabad, and Food Street projects continue to deliver strong rental yields and appreciation potential.

Sultan’s Perspective

At Sultan’s Group of Companies, we believe 2025 is a defining year for the real estate market in Rawalpindi and Islamabad. The combination of infrastructure expansion, mega development projects, and investor-friendly policies is unlocking new opportunities for buyers, sellers, and developers alike.

For investors, this is the right time to secure prime assets—whether it’s residential plots along the Ring Road, designer homes in Bahria Town, or commercial properties in high-demand zones. The market fundamentals remain strong, and long-term growth looks promising.

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