FBR Property Valuation Islamabad: Big Increase Announced
The Federal Board of Revenue (FBR) has introduced a significant update to property valuation rates across Islamabad, marking a major shift in how real-estate values are assessed and taxed. Under the FBR Property Valuation Islamabad initiative, revised valuation tables have taken effect immediately, impacting 68 residential, commercial and rural areas throughout the capital.
Officials say the updated rates are designed to bring official valuations closer to actual market values, improve transparency in real estate transactions and strengthen documentation for property transfers and tax compliance. Under the new valuation framework, both land and superstructures (buildings and improvements) are now being valued separately, a departure from previous valuation systems.
Residential and commercial superstructures up to five years old are now valued at Rs 4,000 per square foot, while older constructions are valued at Rs 3,000 per square foot under the FBR Property Valuation Islamabad revision. Premium sectors such as E-7 now top the list, with open residential plots valued at Rs 600,000 per square yard, while F-7 and F-6 stand at Rs 500,000 per square yard. Other sectors like F-10, F-11 and G-6 have also seen increases in plot valuations.
Commercial property valuations have risen sharply too, with key areas like E-7 and F-7 valued at up to Rs 2.5 million per square yard, while D-12 and E-11 are positioned at around Rs 1 million per square yard. Farmhouse and institutional zones have also experienced upward revisions.
The FBR Property Valuation Islamabad update is expected to affect capital-gains tax, withholding tax and other real estate-related duties, as official declared values will now more closely reflect the market. Property buyers, sellers and developers have been advised to follow the new valuation schedule for all ongoing and future transactions.
Some sectors may see temporary adjustments or revisions in response to market feedback, but the overall trend indicates a strategic push by the FBR to modernize property valuation norms in Pakistan’s capital.
Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
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