ISLAMABAD: Guest house rates in several upscale sectors of the federal capital have dropped noticeably over the past few weeks, with operators citing a decline in demand following stricter visa
enforcement and reduced cross-border movement involving Afghan nationals.
According to market observations and online booking listings reviewed, nightly room rates in sectors such as E-11 and
F-11 are now ranging between Rs2,000 and Rs4,500, compared to higher averages reported in previous months. Operators in E-11, a sector known for its concentration of private guest houses and short-term rentals, say occupancy levels have softened. “Earlier, we had consistent long stay bookings. Now, there are days when several rooms remain vacant,” said the representative of a guest house in E-11, requesting anonymity due to business sensitivities. “We had to revise rates to
remain competitive.” A similar trend was observed in F-11, where another operator confirmed that discounted nightly offers are increasingly being used to attract walk-in and online bookings.
While no official data has been released on occupancy rates, property dealers and hospitality intermediaries say a segment of the demand in these sectors historically came from Afghan business visitors, medical travellers and families seeking short- to medium-term accommodation in
Islamabad. In recent months, reports of tightened visa scrutiny and evolving border management policies have contributed to uncertainty in cross-border movement. Industry observers believe this
has had a spillover effect on Islamabad’s short-term rental market.
A property consultant operating in the capital noted that supply in E-11 has also increased over the years, intensifying competition among guest house operators. “When demand contracts even slightly, the rate correction becomes immediate because the sector has high supply,” he said. A review of multiple travel and booking platforms shows increased availability of rooms in E-11 for short stays. Several listings are currently advertising rates significantly lower than peak season averages.
Guest house owners argue that
while rates have dropped, operational costs remain elevated due to electricity tariffs, security arrangements and staffing expenses. Market watchers remain divided on whether the current rate decline is temporary or part of a longer correction cycle. For now, Islamabad’s short-term
accommodation market appears to be adjusting to new ground realities, with consumers benefiting from lower rates in the short term.
