The Federal Board of Revenue (FBR) has announced a reduction in property valuation rates across five major cities of Punjab, introducing targeted adjustments instead of a complete revaluation. The revised rates came into effect on April 22, 2026, and apply to Faisalabad, Gujranwala, Multan, Bahawalpur, and Sialkot. These updated valuation tables will now be used to calculate federal taxes, including capital gains tax and withholding taxes on property transactions, directly impacting buyers, sellers, and investors in the real estate sector.
According to official details, the FBR issued separate notifications for each city, including SRO650(I)/2026 for Multan, SRO651(I)/2026 for Faisalabad, SRO652(I)/2026 for Bahawalpur, SRO653(I)/2026 for Gujranwala, and SRO662(I)/2026 for Sialkot. The purpose of these revisions is to bring government-notified property values closer to actual market rates, especially in high-end housing schemes and rapidly developing urban areas, while maintaining the existing overall valuation framework.
In Multan, the changes were selective and introduced through amendments to a previous 2024 notification, focusing only on specific localities and property categories. A similar strategy was adopted in Faisalabad, where only identified areas and entries were revised instead of overhauling the entire valuation system. Officials stated that this approach allows for more accurate adjustments without causing disruption across the broader property market.
In Bahawalpur, the revisions mainly targeted high-value areas such as DHA Bahawalpur and the Askari Housing Scheme. Meanwhile, Gujranwala saw updated valuations in defence housing schemes, Askari projects, and private developments like Palm City. In Sialkot, the FBR revised selected property categories, including residential plots and constructed properties, by updating specific entries and valuation rates.
Officials emphasized that the goal behind these changes is to make official property valuations more realistic and aligned with current market trends, while avoiding the economic shock of a full-scale revaluation across entire cities. This targeted approach is expected to provide some relief to stakeholders while ensuring tax calculations remain fair and updated.
Meanwhile, in Islamabad, property valuation rates have already undergone multiple revisions this year. After a notification issued in December was suspended, the FBR revised rates downward in February and made further amendments later. Most recently, a reduction of 10% to 35% was introduced on April 16 in several urban sectors to address concerns from property stakeholders and encourage market activity.
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