How to Convert Your Residential Property into a Commercial One

How to Convert Your Residential Property into a Commercial One

Do you have a property that you do not want to use or live in? It might be nice to turn it into a commercial property. If you are already planning to do this, we will help you.

Here are some important points you need to know if you want to turn your residential property into a commercial property.


According to Maher Azim, CEO of Maher Azim Estate, you can’t just convert residential to commercial if you live in gated and organized communities that have their own rules. The ruling against this is found in the bylaws of almost all of these communities, so it is normally not an option, especially in some large projects like the Bahria Town or DHA (Defence Housing Authority).

Commercial Zones

Dream Ambassadors CEO Salim Ghori said that even outside these communities, no building or land can be converted into a commercial property. Muhammad Shafi Jakwani, CEO of City Associates, explained that in major cities such as Islamabad, Lahore, and Karachi, this can only be done in areas that local authorities have identified and listed as commercial. If you need to know if you can sell your property, you can check with the local government office in the city where your building is situated. These commercial areas are usually located around some major avenues and roads.


In areas that are not classified as commercial zones, rules vary from city to city. According to Azim, in some cities, it is generally prohibited, while in others, such as Lahore, the authorities may allow the marketing or conversion of residential real estate. However, permission must be obtained from the development authority to ensure that the property is not being used for purposes that could harm the adjacent residential area.

In addition, NOC (no-objection certificate) must also be attained from neighboring areas authority located directly to the back, left, or right of the commercial real estate.


CEO Azim explained that an advertisement should be placed in one of the daily newspapers that the owner intends to make the property commercialized. In the absence of public objection, the owner can proceed with the transformation.


After you complete all of these steps, you can head to the development board to start the paperwork procedure. There are currently two options available, depending on which is the best – permanent or annual commercialization.

According to some other sources, the annual transfer entails an annual renewal for a fee that is a trivial percentage of its total commercial value – 3 – 5 % in Lahore. When it comes to a permanent transfer, the amount of the commission depends on the commercial value of the property and region.

Jakvani explained that the demand for commercial real estate is growing. This is evidenced by the huge number of shopping centers and squares spread across the country. However, in many places, the demand was not met. Converting residential possessions to a commercial property may be the only option in such circumstances. What’s more, given its high ROI and its value, which can double to fourfold depending on location, this is an option many would like to consider.

We hope this helps you make better decisions if you are looking to transform your residential property into a commercial property. Moreover, if you want to share your views, kindly comment in the section below.

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