The Federal Board of Revenue (FBR) of Pakistan has revised the property valuation rates for residential and commercial plots in Islamabad. This revision follows demands from traders and real estate stakeholders to align official rates with the actual market situation. The changes aim to reduce excessive valuations, provide relief to investors, and encourage property transactions in the federal capital.
The new rates were issued under SRO-163, replacing the previous SRO-2390 notification dated 12 December 2025. The FBR’s decision affects 68 locations across Islamabad, including high-end sectors like E-7, F-6, and F-7, as well as developing sectors such as B-17.
Sector Wise Property Valuation Changes
| Sector | Plot Type | Previous Rate (Rs/sq yd) | Revised Rate (Rs/sq yd) | Change (%) |
|---|---|---|---|---|
| B-17 | Possession | 50,000 | 30,000 | -40% |
| B-17 | Non-possession | 40,000 | 15,000 | -62.5% |
| E-7 | Any | 600,000 | 225,000 | -62.5% |
| F-6 | Any | 500,000 | 210,000 | -58% |
| F-7 | Any | 500,000 | 210,000 | -58% |
Explanation of the Changes
- B-17: Rates for plots with possession have been reduced from Rs 50,000 to Rs 30,000 per square yard, and non-possession plots from Rs 40,000 to Rs 15,000. This makes plots in developing sectors more affordable.
- E-7, F-6, F-7: Luxury sectors saw a sharp decline of more than 50 percent, reflecting a correction from earlier overvaluation.
- These changes provide more realistic official valuations that match the actual market price.
Timeline of Notifications
| Date | Notification | Action |
|---|---|---|
| 10 Dec 2025 | SRO-2390 | Initial revised property rates issued |
| 16 Dec 2025 | Suspension | FBR temporarily suspended the new rates due to objections from stakeholders |
| Early 2026 | SRO-163 | FBR issued final revised rates with 30–50% cuts in valuations |
Areas Covered in the Revision
The 68 locations in Islamabad include:
- Residential sectors: B-17, E-7, F-6, F-7, G-10, G-11, I-8, I-9
- Commercial areas: Blue Area, G-7 commercial, Jinnah Super Market, etc.
- Rural areas: Certain villages and outskirts of ICT where urbanization is in progress
Note: Defence Housing Authority (DHA) properties are excluded from this notification. DHA plots are valued separately under their own notification.
Impact on Real Estate Sector
The revised valuations are expected to:
- Provide financial relief to property buyers and investors.
- Encourage more property transactions in both developing and high-end sectors.
- Ensure fair tax assessment, as FBR uses these rates for capital gains tax, withholding tax, and registration duties.
- Restore market confidence, which was shaken due to the earlier high valuations and temporary suspension.
Why This Matters
- Previous rates issued in SRO-2390 were significantly higher than actual market prices, creating buyer hesitation.
- By reducing rates 30 to 50 percent, FBR balances tax compliance with market feasibility.
- Developers and investors now have clear guidance for pricing, buying, and selling properties.
- Aligning official rates with market trends reduces disputes during property registration and ensures transparent transactions.
Conclusion
The FBR’s revised property valuation rates under SRO-163 provide relief to Islamabad’s real estate market while ensuring tax compliance. By revising rates across 68 locations, including high-value sectors like E-7 and F-6 and developing sectors like B-17, the government aims to boost property transactions, restore market confidence, and reflect actual market prices.
