FBR Revises Islamabad Property Valuations — Up to 75% Increase, DHA Rates Kept Unchanged

FBR Revises Islamabad Property Valuations — Up to 75% Increase, DHA Rates Kept Unchanged, The Federal Board of Revenue (FBR) has issued a revised valuation framework for immovable property in the Islamabad Capital Territory (ICT), announcing substantial increases ranging from 15% to 75% for most areas, while retaining existing valuation rates for Defence Housing Authority (DHA) properties.

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In Notification SRO.163(I)/2026, released on Monday, the FBR replaced the earlier valuation tables under SRO.2392(I)/2025, which were suspended following strong objections from real estate stakeholders. The suspension had remained in place until January 31, 2026.

Key Highlights of the New Valuation Rates

• DHA Properties:
  The Defence Housing Authority (DHA) in Islamabad has been excluded from the new valuation tables and will continue to follow previously notified valuation rates. A separate valuation notification for Rawalpindi properties is expected soon.
• Revised Valuations for Other Areas:
  Valuation rates for residential and commercial properties across Islamabad have been increased in consultation with local real estate agents to better reflect fair market conditions.
• Superstructure Values:
  Under the new rules, the value for building superstructures has been set at:
  • Rs. 3,000 per square foot for buildings up to five years old
  • Rs. 1,500 per square foot for structures older than five years
• Rural Areas:
  Property valuations in rural sections of the Islamabad Capital Territory will now be set by the Additional Deputy Commissioner (Revenue) or District Collector. In situations where differing rates apply, the higher value will be used.

Background and Industry Reaction

This revision follows the FBR’s earlier attempt to align official property valuations with market prices, which had resulted in significantly higher values and sparked strong resistance from property owners and real estate professionals late last year. The earlier notification was put on hold, prompting these updated rates after further consultations.

Real estate experts say these changes may affect capital gains tax, withholding tax, and stamp duties, potentially increasing the cost of property transactions outside DHA sectors.