Finance & Digital Economy Desk | April 2025 | 4 min read
| FBR has cut Islamabad property valuations by 10–30% via S.R.O. 644(I)/2026, reducing rates for residential plots, commercial properties and superstructures across multiple sectors of the federal capital. |
| ⚡ Quick Takeaways |
| • FBR has issued S.R.O. 644(I)/2026 reducing immovable property valuations across Islamabad by 10 to 30 percent. • Superstructure rates for buildings up to five years old drop from Rs3,000 to Rs2,500 per sq ft; older buildings from Rs1,500 to Rs1,200 per sq ft. • Possession-based residential plot rates in B-17 and C-14 have been cut from Rs30,000 to Rs21,000 per square yard. • Rural ICT valuations remain governed by the Additional Deputy Commissioner’s July 2025 notification; in conflicts, the higher rate applies. • Premium commercial zones — Blue Area Jinnah Avenue, F-8, G-8 and New Blue Area — retain their existing valuations unchanged. |
The Federal Board of Revenue has issued a sweeping downward revision of property valuations across Islamabad, cutting fair market rates by 10 to 30 percent through a new statutory notification. The move directly affects the tax base for transfers, stamp duty and capital gains calculations on residential plots, commercial properties and built structures throughout the federal capital. Buyers, sellers and real estate professionals will need to familiarise themselves with sector-specific figures before any transaction proceeds.
By the Numbers
| Up to 30% Maximum valuation reduction | Rs2,500/sqft New rate for <5yr superstructures | Rs21,000/sqyd New B-17 possession plot rate |
Superstructure Rates: New vs Old
The revised notification establishes two standardised tiers for built structures across Islamabad. For buildings constructed within the last five years, the rate per square foot has been reduced from Rs3,000 to Rs2,500 — a reduction of approximately 17%. For older buildings aged beyond five years, the rate drops from Rs1,500 to Rs1,200 per square foot, representing a 20% cut. These rates form the tax base for calculating duties on property transfers involving constructed buildings rather than bare plots.
| Building Age | Old Rate (per sq ft) | New Rate (per sq ft) |
| Up to 5 years old | Rs3,000 | Rs2,500 |
| Older than 5 years | Rs1,500 | Rs1,200 |
Residential Sector Reductions: Key Areas
The steepest reductions in residential plot valuations apply across several developing and mid-tier sectors. The table below captures the most significant changes for possession-based residential plots.
| Sector | Old Rate (per sq yd) | New Rate (per sq yd) |
| B-17 (possession) | Rs30,000 | Rs21,000 |
| B-17 (non-possession) | Rs15,000 | Rs10,500 |
| C-14 (possession) | Rs30,000 | Rs21,000 |
| C-15 | Rs25,000 | Rs17,500 |
| C-16 | Rs20,000 | Rs14,000 |
| D-13 | Rs16,000 | Rs11,200 |
| G-13 | Rs100,000 | Rs70,000 |
| G-17 | Rs25,000 | Rs17,500 |
| Margalla Town | Rs55,000 | Rs38,500 |
| Chak Shahzad | Rs50,000 | Rs35,000 |
| Banigala | Rs35,000 | Rs24,500 |
| Park View | — | Rs24,500 |
Premium Sectors and Commercial Zones
High-value sectors have been assigned fixed or range-based valuations rather than blanket cuts. In E-7, residential plots are valued at Rs225,000 per square yard. E-11 ranges between Rs70,000 and Rs100,000 per square yard, while E-12 is fixed at Rs39,200 per square yard. G-14 falls between Rs35,000 and Rs63,000, and G-15 between Rs7,000 and Rs17,500.
Major commercial corridors in the capital retain their existing valuations. Constructed flats in Blue Area on Jinnah Avenue remain at Rs100,000 per square foot. Fazl-e-Haq Road in Blue Area ranges from Rs8,000 to Rs50,000. New Blue Area and the G-9, F-9, G-8 and F-8 sectors continue to attract valuations between Rs40,000 and Rs150,000 per square foot — all unchanged under the new notification.
| 📊 Analysis — Why These Cuts Matter for Transactions: FBR property valuations directly determine the tax base for stamp duty, capital gains tax and withholding tax on real estate transfers. Lower official valuations reduce the tax payable on paper transactions, potentially narrowing the gap between declared and market values and encouraging more documented property sales in the formal economy. |
Rural ICT Areas and Conflict Resolution Rule
The FBR has clarified that rural areas within Islamabad Capital Territory are not covered by S.R.O. 644(I)/2026. Their valuations continue to be governed by rates set by the Additional Deputy Commissioner (Revenue) / District Collector Islamabad under the July 1, 2025 notification. Where any overlap or conflict arises between the two sets of rates for the same property or area, the higher of the two values will prevail — a rule designed to prevent undervaluation through jurisdictional ambiguity.
| ⚠️ Advisory for Property Buyers and Sellers: Verify which notification governs your specific sector or locality before proceeding with a transaction. Rural ICT areas use ADC Revenue rates, not FBR SRO rates. If both rates apply to an area, the higher value is used for tax purposes. Consult a registered property lawyer or tax advisor before finalising any deed. |
DISCLAIMER: All information in this article is based on publicly available data and official statements. This content is intended for general informational purposes only.
