Pakistan Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth

Written by: Jae Seok An, Founder, Airbtics
Published: January 22, 2026

Pakistan Short-Term Rental Market Overview 2025

Average Occupancy Rate i
29.50%
Average Annual Revenue i
PKR1,133,556
Average Daily Rate (ADR) i
PKR10,329
YoY Supply Growth i
80.50%
YoY Revenue Change i
-4.67%
Markets Analyzed
2

Number of Airbnb Listings Changes in Pakistan 2025

Which markets are experiencing rapid saturation?

A key consideration when entering a new short-term rental market is assessing whether it may become oversaturated. To evaluate this, we analyze the year-over-year supply change in Airbnb listings. The national average YoY supply change in Pakistan was 80.50% in 2025, indicating the overall growth trajectory of the market.

Markets with Largest Absolute Supply Increases in Pakistan

In absolute terms, Lahore experienced the largest increase with +502 new listings added in 2025. This was followed by Islamabad (+489 listings) and (+0 listings).

Markets with Fastest Relative Growth in Pakistan

In relative terms, Lahore experienced the most significant growth, with 85.92% more supply added over the 12-month period in 2025. Other rapidly expanding markets include Islamabad (+75.08%) and (+0.00%).

Short-Term Rental Revenue Trend in Pakistan 2025, and Future Outlook for 2026

Does increased supply necessarily indicate market saturation?

To assess market saturation, we examine year-over-year revenue trends. A decline in revenue per listing typically indicates heightened competition and potential oversaturation. The Pakistan average YoY change in revenue was -4.67% in 2025, representing an increase from $4,201 in 2024 to PKR1,133,556 in 2025.

Top Markets Revenue Performance

Lahore

PKR1,275,505 → PKR1,205,863 (-5.46% YoY)
🏰
Best Property Type Large (4+BD) • Budget ($)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 25.0%
💰
Average Daily Rate PKR10,754
📊
Occupancy Rate 30.0%
📅
Seasonality High seasonality

Islamabad

PKR1,103,973 → PKR1,061,250 (-3.87% YoY)
🏰
Best Property Type Large (4+BD) • Midscale ($$)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 36.0%
💰
Average Daily Rate PKR9,905
📊
Occupancy Rate 29.0%
📅
Seasonality High seasonality

For more detailed revenue YoY change analysis by market, access the Airbtics dashboard to explore specific market performance metrics.

Easiest Markets for Hosts in Pakistan 2025

Markets with high occupancy rates provide hosts with greater booking consistency, while markets with high booking volumes offer expanded opportunities across various property types and sizes.

Highest Occupancy Rate Markets in Pakistan 2025

Lahore recorded a year-round occupancy rate of 30.00%, which is among the highest in Pakistan. This was followed by Islamabad (29.00%) and (0.00%).

Highest Booking Volume Market in Pakistan 2025

Markets with high booking volumes present additional advantages, as they offer diverse opportunities across various property types and price points. The market that recorded the highest booking volume in Pakistan is Islamabad, with approximately 120,880 nights booked in 2025.

Regulatory Landscape

We define a professionalized or strictly regulated market as one where over 50% of active Airbnb listings hold valid license information, indicating consistent enforcement and higher compliance. Markets below this threshold are considered unregulated or lenient.

In Pakistan, 0 out of 2 markets fall into the professionalized / strict regulation category. For detailed license compliance data and market-specific regulatory insights, the Airbtics dashboard provides the percentage of listings with valid licenses for each market, enabling investors to assess regulatory risk at a granular level.

Which Pakistan Markets Are Growing Healthily vs Overheating?

Understanding market saturation requires looking at both supply growth and revenue trends together. Markets are categorized by comparing their YoY supply and revenue changes against Pakistan's national averages. Markets where supply is growing faster than revenue (relative to national averages) may be approaching saturation, while markets with below-average supply growth but above-average revenue growth may present hidden opportunities.

Benchmark: Markets are categorized relative to Pakistan's national averages (Supply: 80.5%, Revenue: -4.7%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • No markets in this category
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • Lahore Supply: +85.9% | Revenue: -5.5%
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Islamabad Supply: +75.1% | Revenue: -3.9%
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • No markets in this category

For the latest updates of the market data in Pakistan, check out our Best Airbnb Markets in Pakistan.

Data methodology

All metrics are calculated using active short-term rental listings tracked weekly by Airbtics. Revenue, occupancy rate, ADR, and supply growth are estimated from historical booking calendars, listing activity, and proprietary aggregation models.

Source: Airbtics
Learn data methodology →

Cite this report

Airbtics (2026). Pakistan Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth. https://airbtics.com/short-term-rental-market-report-2025-pakistan

Need Programmatic Access to Short-Term Rental Data?

Integrate accurate Airbnb market data directly into your applications, dashboards, and investment models with the Airbtics API. Access 12+ million listings, 12 months of historical data, and industry-leading revenue accuracy through clean, developer-friendly endpoints.

Explore Airbnb API →