ISLAMABAD — The Federal Board of Revenue (FBR) has issued updated fair market values for immovable properties in Islamabad, aiming to enhance tax compliance and better align official rates with prevailing market prices.
The revised valuation table, notified through S.R.O. 644(I)/2026, supersedes the earlier rates announced in February 2026. It covers residential, commercial, and rural properties across the federal capital, including developed sectors, housing societies, and outlying areas.
According to officials, the updated framework is intended to improve the accuracy of withholding tax calculations on property transactions and discourage under-declaration of values.
The new structure introduces separate valuation categories for open plots, constructed properties, apartments, and commercial units such as shops and offices. It also standardizes construction costs, setting rates at Rs2,500 per square foot for buildings up to five years old and Rs1,200 per square foot for older structures.
Prime sectors including F-6 and F-7 have been assigned some of the highest property values, with open plots reaching up to Rs210,000 per square yard. Key commercial zones like Blue Area also reflect premium rates, particularly for ground-floor outlets and office units.
Meanwhile, developing sectors such as G-15 and I-12, along with surrounding rural مناطق, have comparatively lower valuations, reflecting ongoing infrastructure development and market conditions.
For commercial properties, valuation varies based on location within a building. Ground-floor units in major markets and Markaz areas carry the highest rates, followed by upper floors, basements, and rear-facing units.
The notification further clarifies that in cases where multiple valuation rates apply within a locality, the highest rate will be used for taxation. Rural property values will continue to follow previously notified district-based rates.
Property experts believe the revised valuations could raise transaction costs in high-end areas while improving transparency in real estate dealings. However, they caution that higher official rates may temporarily slow market activity in certain segments.
The move is part of broader efforts by the FBR to modernize property taxation, boost revenue collection, and minimize valuation gaps in Pakistan’s real estate sector.
