Residents across Islamabad have been taken by surprise after the FBR sharply increased property valuation rates in the city. The new rates are 150 to 200 percent higher than previous market values and apply to all sectors of Islamabad Capital Territory. Areas such as DHA, Bahria Enclave, Gulberg, and B-17 are among the most affected.
The FBR has issued fresh valuations for residential, commercial, and rural properties in 68 locations. These include major housing colonies like Zartaj Housing, Ghandhara City, and several well-known sectors across the capital. The changes were introduced through S.R.O. 2392(I)/2025, which was released on Tuesday.
A key change in the new notification is a shift in the tax structure. Residents of Islamabad will now pay two different taxes: one on the superstructure and another on the actual land. Different valuation rates will apply to open plots, houses, apartments, and flats.
According to the FBR, it will now determine the fair market value of all immovable properties in Islamabad. The value of residential and commercial superstructures has also been updated. Buildings up to five years old are now valued at Rs. 4,000 per square foot, while structures older than five years are valued at Rs. 3,000 per square foot.
Sector E-7 has received the highest valuation among residential areas, with open plots now priced at Rs. 600,000 per square yard. Sectors F-6 and F-7 follow at Rs. 500,000 per square yard, while F-8 stands at Rs. 450,000 per square yard. Valuations in F-10, F-11, and G-6 have also increased, reaching Rs. 350,000 per square yard.
In commercial areas, rates have risen sharply as well. D-12 and E-11 now have commercial valuations of up to Rs. 1 million per square yard. Premium sectors, including E-7, F-6, F-7, and F-8, carry some of the highest commercial rates at Rs. 2.5 million per square yard. F-10 and F-11 are now valued at Rs. 2.2 million per square yard, while G-5 to G-9 fall at Rs. 1.8 million per square yard.
Farmhouse and industrial land valuations have also been revised upward. In Chak Shahzad, the new maximum rate is Rs. 11.2 million per kanal. Orchard Scheme is now valued at Rs. 14 million per kanal, and Gulberg Green at Rs. 17.55 million. Industrial plots in sectors I-9 and I-10 are now priced at up to Rs. 18 million per kanal.
While a few locations have seen slight decreases, most areas across the capital have experienced significant increases, especially in central and high-demand zones.
Rural property valuation will follow a previous notification issued by the Additional Deputy Commissioner (Revenue) on July 1, 2025. In case two valuation rates conflict, the higher rate will apply.
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The new rates are now officially in effect. The FBR has advised all buyers, sellers, developers, and investors to strictly follow the updated valuation schedule for property transactions.
