The Federal Board of Revenue (FBR) has announced a major revision of property valuation rates in Islamabad, marking a significant change for buyers, sellers, and investors in the capital. The new valuation tables, notified under SRO 2392(I)/2025, replace previous rates that had been in effect since mid‑2022. According to officials, the revision aims to align official property values with actual market rates and curb widespread tax evasion in real estate transactions.
The updated valuations cover all categories of properties, including residential houses, apartments, commercial offices, open plots, and farmhouses across the city. Prime sectors such as E‑7, F‑6, F‑7, F‑8, DHA Islamabad, and Bahria Enclave have seen the most significant adjustments, reflecting the high demand and premium nature of these areas. Residential properties up to five years old are now valued at approximately Rs 4,000 per square foot, while properties older than five years are valued at around Rs 3,000 per square foot. Open plots in high-demand sectors have also increased sharply, with some plots in E‑7 now valued at roughly Rs 600,000 per square yard.
Commercial properties have experienced similar hikes. High-value commercial plots and offices in sectors like F‑7 and F‑6 are now officially valued at up to Rs 2.5 million per square yard. Even peripheral areas and farmhouses have been re-evaluated, with rates adjusted to better reflect current market trends. The FBR stated that these changes will create a more transparent system for property transactions and ensure that taxes are collected fairly based on realistic valuations.
The revised valuations are expected to affect multiple aspects of real estate transactions. Capital gains tax, documentation charges, and withholding taxes will now be calculated on higher property values, increasing the overall tax burden for buyers and sellers. Investors and developers may need to reassess their plans, as the higher valuations could impact project costs and expected returns. At the same time, aligning official values with market realities may discourage underreporting of property prices and promote transparency in the sector.
Property experts say that while this revision is likely to increase the cost of transactions in Islamabad, it is a step toward modernizing the taxation system and reducing the gap between actual and declared property values. Buyers, sellers, and investors are advised to review the new tables carefully and plan their transactions accordingly to comply with the FBR’s updated rules.
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