ISLAMABAD, April 16, 2026 — The Federal Board of Revenue (FBR) on Thursday issued revised fair market values for immovable properties in Islamabad, in a move aimed at tightening tax compliance and aligning property valuations with prevailing market rates.
The new valuation framework, notified under S.R.O. 644(I)/2026, replaces earlier rates issued in February 2026 and covers residential, commercial, and rural properties across the federal capital, including developed sectors, housing societies, and peripheral areas.
Officials said the updated system is designed to improve the accuracy of withholding tax calculations on real estate transactions and curb under-declaration of property values.
Revised valuation structure
The notification introduces differentiated rates for open plots, constructed properties, apartments, and commercial units such as shops and offices. It also standardizes construction valuation, setting Rs2,500 per square foot for buildings up to five years old and Rs1,200 per square foot for older structures.
Prime residential sectors such as F-6 and F-7 have been assigned some of the highest valuations, with open plots reaching up to Rs210,000 per square yard. Commercial hubs including Blue Area also reflect premium rates, particularly for ground-floor shops and office spaces.
In contrast, developing sectors such as G-15, I-12, and surrounding rural areas carry lower valuations, reflecting infrastructure gaps and ongoing development.
For commercial properties, rates vary based on floor level and location within a building. Ground-floor units in major markets and Markaz areas are assigned the highest values, followed by upper floors, basements, and rear-side units.
The notification further states that where multiple rates exist for a single locality, the higher value will apply for taxation purposes. Rural property valuations will continue to follow previously notified district-level rates.
Market impact
Real estate analysts said the revised framework could increase transaction costs in prime areas while improving transparency in property deals. However, they warned that higher valuations may temporarily slow activity in certain segments.
The move is part of broader reforms by the FBR to modernize property taxation, enhance revenue collection, and reduce valuation discrepancies in Pakistan’s real estate sector.