The Federal Board of Revenue (FBR) has announced revised property valuation rates for Islamabad. The new rates reduce values by 30 to 50 percent. This decision comes after strong demands from real estate traders.
According to the official notification, the FBR has updated rates for residential and commercial plots. These changes apply to 68 different locations across the federal capital.
In Sector B-17, major reductions have been made. Plots with possession are now valued at Rs30,000 per square yard. Earlier, the rate was Rs50,000. For non-possession plots, the rate has dropped from Rs40,000 to Rs15,000 per square yard.
The notification stated that these rates fall under SRO-163. The updated values replace those earlier issued under SRO-2390 on December 12, 2025.
High-end sectors have also seen sharp cuts. In Sector E-7, plot valuation has fallen from Rs600,000 to Rs225,000 per square yard. In sectors F-6 and F-7, the rate is now Rs210,000 instead of Rs500,000.
Officials believe these changes will provide relief to buyers and sellers. The reduced rates are expected to revive property transactions. Many investors had delayed deals due to high valuations.
Earlier, on December 10, 2025, the FBR had introduced revised rates for the same locations. These were meant to reflect fair market values. The new system covered residential, commercial, and rural properties.
However, just six days later, the FBR suspended those rates. The decision followed strong reactions from traders and property dealers. They argued that high values were hurting business activity.
After further consultations, the FBR decided to issue fresh rates. These revised values aim to balance government revenue with market realities.
Real estate experts say the move could boost investor confidence. Lower valuations reduce tax burdens on buyers. This makes property more affordable for middle-income groups.
The FBR stated that the updated rates will apply to all property transactions. This includes buying and selling across Islamabad’s key sectors.
Authorities also noted that valuation policies may continue to evolve. Future revisions will depend on market trends and economic conditions.
In other news read more about FBR Tax Collection Soars: Rs 1,015 Billion Recovered in January Alone
For now, the new rates are seen as a positive step. Stakeholders hope it will lead to increased activity in Islamabad’s real estate market.
