The Federal Board of Revenue (FBR) has announced a major revision in property valuation rates across Islamabad. The move brings sharp increases in most sectors of the federal capital. However, the Defence Housing Authority (DHA) has been excluded from the new valuation tables.
The decision was formalised through Notification SRO.163(I)/2026, issued on Monday. The revised rates apply to residential and commercial immovable properties in the Islamabad Capital Territory (ICT). In several localities, valuation increases range from 15 percent to as high as 75 percent.
According to officials, the step aims to bring official property values closer to prevailing market prices. The revised rates will directly affect tax liabilities linked to property transactions, including capital gains tax, withholding tax, and stamp duty.
DHA Excluded, Separate Notifications Planned
Under the new notification, the FBR has excluded DHA from the updated valuation tables. Property values in DHA will continue to follow previously notified rates. Officials confirmed that no immediate changes apply to DHA sectors in Islamabad.
Sources revealed that the FBR plans to issue a separate notification for Rawalpindi. That notification will revise and enhance property valuations for the city. Authorities want to avoid confusion by handling Islamabad and Rawalpindi independently.
The FBR clarified that the revised Islamabad valuations were finalised after consultations with local real estate agents. Stakeholder input played a role in adjusting rates after earlier resistance from the property sector.
Previously, the FBR had notified higher valuations under SRO.2392(I)/2025. That notification aimed to align official rates with market values. However, strong objections from builders, investors, and property dealers followed. As a result, the FBR suspended the earlier notification until January 31, 2026.
The newly issued SRO.163(I)/2026 now replaces the suspended notification. It supersedes all earlier valuation tables for Islamabad.
New Rates for Buildings and Land Explained
Under the revised framework, the FBR has fixed uniform values for superstructures. Residential and commercial buildings up to five years old will be valued at Rs. 3,000 per square foot. Structures older than five years will be valued at Rs. 1,500 per square foot.
These fixed construction rates apply across notified urban areas of Islamabad. The goal is to standardise valuations and reduce underreporting during property transfers.
For rural areas of the Islamabad Capital Territory, a different method applies. Property valuations in rural zones will follow rates notified by the Additional Deputy Commissioner (Revenue) or the District Collector, Islamabad.
In cases where multiple valuation rates exist for the same area, the higher value will apply. This provision aims to prevent misuse and revenue leakage.
Impact on Buyers, Sellers, and Tax Revenue
The revised valuations are expected to increase transaction costs for buyers and sellers. Higher official values mean higher taxes during registration and transfer. Investors may also face higher capital gains tax liabilities.
At the same time, the FBR expects stronger revenue collection from the real estate sector. Officials believe the move will discourage undervaluation and undocumented transactions.
Real estate experts say the exclusion of DHA provides temporary relief to high-end investors. However, they warn that future revisions may still affect DHA areas.
The FBR maintains that fair valuation is essential for transparency. Authorities argue that realistic rates support better documentation of the property market and improve fiscal discipline.
