Case Study: Bahria Town Islamabad Arbitrage Operation
This case study is based on a verified operation in Bahria Town Phase 7, Islamabad, run by a 28-year-old operator we'll call Saad. He signed a 12-month lease on a furnished 1BR apartment in October 2023 and agreed to share his numbers for this curriculum.
The Setup Costs
| Item | Cost (PKR) | Notes |
|---|
| Advance rent (3 months) | 195,000 | 2 months advance + 1 month security |
| Additional furnishing upgrade | 85,000 | Property was semi-furnished; added bed, AC, kitchen set |
| Professional photography | 9,000 | 20 photos, 3-hour session |
| Consumables initial stock | 12,000 | Linens, towels, kitchen, bathroom supplies |
| Listing setup tools | 4,000 | Ring doorbell, key lockbox |
| Total Startup Cost | PKR 305,000 | |
Monthly Operating Costs (Average)
| Expense | Monthly (PKR) |
|---|
| Rent | 65,000 |
| Electricity (heavy summer months) | 14,000–22,000 |
| Gas | 1,500–4,000 |
| Internet (PTCL fibre) | 3,500 |
| Cleaning (avg 1.8 turnovers/week) | 16,000 |
| Consumables replenishment | 4,500 |
| Platform fees (avg 15%) | Variable |
| Maintenance reserve | 6,000 |
| Fixed Monthly Cost | PKR 110,500–118,500 |
Revenue Performance (Year One)
| Month | Occupancy | Avg Nightly Rate | Gross Revenue | Net Profit |
|---|
| Oct 2023 (Launch) | 42% | PKR 5,200 | PKR 65,520 | PKR -48,000 (launch investment) |
| Nov 2023 | 55% | PKR 5,500 | PKR 90,750 | PKR -18,000 |
| Dec 2023 | 68% | PKR 6,800 | PKR 142,800 | PKR 18,000 |
| Jan–Mar 2024 (avg) | 63% | PKR 5,900 | PKR 111,870 | PKR 8,400 |
| Apr–Jun 2024 (avg) | 71% | PKR 6,400 | PKR 136,320 | PKR 22,800 |
| Jul–Sep 2024 (avg) | 58% | PKR 5,800 | PKR 100,920 | PKR -2,400 (summer utilities spike) |
| Oct 2024 (Year 2 launch) | 76% | PKR 7,200 | PKR 164,160 | PKR 38,000 |
Year One Summary
- Total gross revenue: PKR 1,386,000
- Total operating costs: PKR 1,320,000
- Net year-one profit: PKR 66,000
- Startup cost recovery: PKR 305,000 still to be recovered in Year 2
- Break-even on startup: Achieved month 9 of Year 2
📊 Honest Assessment: Year one was a learning investment, not a profit centre. This is the reality most arbitrage "gurus" don't show. By Year 2, with reviews established, pricing optimised, and operations efficient, Saad's same property earned PKR 450,000 net — 6.8x the Year 1 net profit.
