The government of Punjab will make substantial changes to the old property tax system by prioritising transparency, compliance, and reducing the taxpayer burden. The new capital value system replaces the old annual rental value system, which will be the most significant reform. According to the new reform, the Excise and Taxation Department is offering a 5% discount on the property tax when you pay your property tax dues before August 31, 2025. It is expected that this initiative would attract early payment of the property tax, as the initiative would facilitate the department to achieve specific revenue targets of the fiscal year 2025-26.
In Punjab, property tax is, as of January 1, 2025, calculated on the capital value of the property instead of the annual rental value of the property (ARV). Significant reform, based on industry feedback to the provincial government, is thought to round out assessments more fairly based on market conditions.
Furthermore, changes to the method of property tax assessments are expected to once and for all create consistency in property tax, while dealing with a long-standing issue of assessments unfairly taxing property owners, especially in developing regions where property values have drastically increased.
The Excise and Taxation Department is providing a 5% discount on property tax when you pay your dues before August 31, 2025. The initiative is hoped to entice early payment on property tax, while helping the department meet certain revenue targets for the fiscal year 2025–26.
Property tax collection in Punjab has faced some teething problems, despite the monumental change in the tax system. According to the government, property tax collection was at 55% under budget in mid-2025. The reasons for the shortfall included confusion on the part of taxpayers with respect to the new tax structure and complexities associated with calculating taxes under the new capital value-based system, particularly for rural property, and resistance to the previous rental value-based system.
The Punjab government offered a 5% property tax discount in response to the shortfall in property tax collections. It seems it has the potential to grow into an impressive success, as many taxpayers took the encouragement to pay taxes early in exchange for a discount. With the offer running until August 31, 2025, property owners focused on early payment to reduce their overall bill. Constituents in disregard because of surcharges surmounting, they hoped taxpayers would take their discount option more seriously as they wish to avoid the surcharge.
Taxpayer engagement has been seen in areas of Lahore, Rawalpindi, Multan, etc. Lahore indicated residents are complying with the property tax. Forged work to achieve enhanced compliance is still needed in the other districts.
In light of the 55% deficiency in taxes collected, the Punjab government has set in motion a number of awareness campaigns addressing property taxes. These campaigns are intended to inform property owners of the new system, what their tax obligations are and the benefits of paying promptly. The awareness campaigns include:
The Punjab government is looking to the future and developing a strategy to help increase property tax compliance by further improvements and incentives. One of the government’s most important targets is to reduce the tax collection gap to below 20% by the end of 2025. To do this, the government is going to try to:
Ultimately, the government hopes to see an increase in not only the number of taxpayers who are compliant with the new tax system, but also the number and amount of tax revenue being collected. This will help develop the province for the overall future economic growth and keep up with the increasing demands on public service requirements, buildings, and infrastructure.
Eastern Housing Lahore is a modern residential and commercial distinct property development currently changing the shape of real estate in the region. Its location near Lahore Ring Road makes the development an attractive mix of luxurious residential options as well as commercial opportunities for development for both investors and homeowners. This segment will briefly highlight the features of Eastern Housing Lahore, location benefits, and overall investment opportunities.
One of the key marketing benefits of Eastern Housing Lahore is its genuinely outstanding location. It is estimated to be only 0.5 km from the Quaid-e-Azam Interchange located on Lahore Ring Road, which represents the most ideal location for whether it be residential or commercial development. The area’s location also allows easy access to many of the major landmarks. Some of them include:
The project will provide access to connect with the rest of Lahore and surrounding areas effortlessly due to its access to the main transport infrastructure, creating a friendly atmosphere for both families and businesses.
Eastern Housing Lahore has multiple residential plots that accommodate people’s unique needs, and plot sizes like 3 Marla to 5 Marla. The residential plots will be set up with payment plans that allow similar accommodation across all buyer types.
Eastern Housing Lahore has been developed under the 21st century and includes infrastructures that consist of wide roads, green spaces, high construction quality, and standards. This promotes a residential area that is comfortable, secure, and pleasant to look at.
Eastern Housing Lahore has developed its commercial property potential with Eastern City Walk. Eastern City Walk is being marketed as a lively commercial area providing opportunities for many different types of businesses (retail, offices, and service-based businesses).
Eastern Housing Lahore has a variety of features that make it a desirable place for home buyers and businesses:
The combination of these facilities, the developed infrastructure, and the premium location together has positioned Eastern Housing Lahore as a desirable prospect for homebuyers or those seeking work. The commercial aspect within the development is set to be a potentially lucrative venture, particularly Eastern City Walk, considering it will leverage its visibility and traffic flows.
Eastern Housing Lahore’s investment potential is bolstered even more by its growth potential and demand for properties in the area. With Lahore’s population and specification of residential and commercial properties increasing, the demand for well-located and well-developed projects like Eastern Housing and Lahore is extensive.
Eastern City Walk is the commercial hub, but more importantly, a place for healthy investment. The incorporation of residential and commercial brings in a balanced ecosystem, allowing families and businesses to come together. As the location becomes developed further, residential and commercial value will also increase. This is also considered one of the long-term investments that the market will be seen as huge in the years to come, as the Lahore real estate market continues to grow.
The improvements in the infrastructure in Lahore are affecting different areas in the Lahore property market. Developments like the Ring Road of Lahore, the Orange Line Metro, and new commercial districts are affecting prices in areas mentioned strategically. A good example is Eastern Housing Lahore.
The commercial real estate sector in Lahore is in a period of growth, as evidenced by increasing demand for retail spaces and office spaces, and by increased demand in developments like Eastern City Walk. There are many factors that are fueling this growth in commercial real estate, and there are many factors driving increased demand and ultimately growth. The process of urbanization, improved infrastructure, and new businesses coming in and creating business districts, like what we are doing with Eastern City Walk.
The retail market in Lahore is growing at an exciting pace of 8-12% per year. Noticeable growth from changes in foot traffic has already been seen at Eastern City Walk, with more growth expected due to a number of factors, key among them being its proximity to residential neighborhoods and to existing transportation, such as the Lahore Ring Road and Orange Line Metro.
The demand for flexible office spaces is rising by 22-25% annually. Eastern City Walk is set to achieve 85-90% occupancy in the next 3 years due to the growing number of startups and entrepreneurs seeking modern workspaces.
Eastern City Walk and other commercial developments in the Eastern Housing area of Lahore have gained traction with investors in recent years, a culmination of high foot traffic and modern amenities situated in a well-developed urban setting. Marginal rental yields are noticed between 6 -10% per annum, making a retail and office tenancy more attractive.
Unbelievable growth is occurring in Lahore’s real estate market amid urbanization, progress of its infrastructure, and changes in consumer buying habits. As the city changes, developments like Eastern Housing Lahore can flourish despite competition because of its location, amenities, and ROI. It doesn’t matter if you want to buy a house to live in or if you are an investor seeking your next opportunity; Lahore has an incredible real estate market with great opportunities and prospects for growth. With the development of infrastructure and the appetite for residential and commercial real estate continuing to increase, Eastern Housing Lahore will remain the most opportunity-rich investment for a smart investment option in Lahore.
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