In a significant move, the Federal Board of Revenue has reduced property valuation rates in Islamabad. The revised rates show a decrease ranging between 30 percent and 35 percent. This decision affects both residential and commercial properties across multiple sectors. As a result, it may influence buying trends and investment strategies in the capital.
Revised Rates for Buildings and Structures
For buildings up to five years old, rates have been lowered to Rs2,500 per square foot in older sectors. Previously, the rate stood at Rs3,000 per square foot. Similarly, older buildings have also seen a reduction. For structures older than five years, rates dropped to Rs1,200 per square foot from Rs1,500.
Rural Islamabad Rates Remain Unchanged
While urban sectors saw major revisions, rural areas follow a different system. Their valuation rates will continue under existing administrative notifications. Therefore, the new changes mainly impact developed sectors within Islamabad.
Sector-Wise Reductions Across Islamabad
Several sectors experienced notable decreases in property values. For instance, B-17 and C-14 saw sharp reductions. Possession-based plots in these areas dropped to Rs21,000 per square yard from Rs30,000. Similarly, non-possession plots in B-17 declined to Rs10,500 from Rs15,000. In C-15, rates fell to Rs17,500 from Rs25,000. Meanwhile, C-16 dropped from Rs20,000 to Rs14,000.
In D-12, constructed residential flats now cost around Rs10,500 per square foot. Commercial properties in the same sector reach about Rs17,500 per square foot. D-13 also witnessed reductions, with rates falling to Rs11,200 per square yard from Rs16,000.
High-End Sectors and Commercial Areas Adjusted
Prime sectors have also seen updated valuation figures. In E-7, residential plots now stand at Rs225,000 per square yard. Commercial structures vary depending on location and type. In E-11, rates range between Rs70,000 and Rs100,000 per square yard. Meanwhile, E-12 has been fixed at Rs39,200 per square yard.
Other sectors such as G-13 and G-14 also saw reductions. G-13 dropped to Rs70,000 per square yard from Rs100,000. Likewise, Margalla Town and Chak Shahzad recorded significant cuts. Banigala and Park View also experienced noticeable decreases.
Commercial Zones Maintain Mixed Trends
Commercial areas show a more varied pattern after revisions. In Blue Area Jinnah Avenue, rates remain at Rs100,000 per square foot. However, Fazl-e-Haq Road shows a wider range, with values between Rs8,000 and Rs50,000 per square foot. In other sectors like G-9 and F-9, values range up to Rs150,000 per square foot.
What This Means for the Property Market
The reduction may offer relief to buyers and investors. Lower valuations could reduce transaction costs and taxes. At the same time, sellers may need to adjust expectations. Therefore, the market could experience short-term shifts. Overall, the decision reflects an effort to align valuations with market realities, and its full impact will become clearer in the coming months.
