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Islamabad’s property market has been jolted by a sweeping overhaul of valuation rates, with the Federal Board of Revenue (FBR) sharply increasing property values by an unprecedented 150-200 percent across the capital. The update, issued through a fresh S.R.O., has stunned residents particularly those in high end areas such as DHA, Bahria Enclave, Gulberg and B-17 as it directly raises the tax burden on real estate transactions.
FBR has formally notified revised valuation rates for 68 residential, commercial and rural localities under S.R.O. 2392(I)/2025. The new system introduces two separate taxes: one on land value and another on the superstructure, replacing the older single rate mechanism applied to all properties.
Under the new rules, FBR will determine fair market values for all immovable properties in Islamabad. Superstructure valuations are now set at Rs. 4,000 per square foot for constructions up to five years old and Rs. 3,000 per square foot for structures older than five years.
Major premium sectors have seen dramatic hikes. Sector E-7 now leads with residential plot valuations at Rs. 600,000 per square yard, followed by F-6 and F-7 at Rs. 500,000. Sector F-8 stands at Rs. 450,000 per square yard.
Commercial properties have undergone some of the steepest revisions. Valuations in sectors E-7, F-6, F-7 and F-8 now reach as high as Rs. 2.5 million per square yard. D-12 and E-11 are set at Rs. 1 million, while commercial spaces in F-10 and F-11 have climbed to Rs. 2.2 million per square yard. Rates in G-5 through G-9 stand at Rs. 1.8 million per square yard.
Farmhouse localities such as Chak Shahzad, Orchard Scheme and Gulberg Green have also seen upward adjustments, now valued at Rs. 11.2 million, Rs. 14 million and Rs. 17.55 million per kanal respectively. Industrial areas I-9 and I-10 are now priced up to Rs. 18 million per kanal.
Rural Islamabad valuations will follow the ADC (Revenue) notification issued on July 1, 2025. In cases where two different rates overlap, the higher value will automatically apply.
Implementation Begins Immediately
The revised valuation schedule is now officially in force. Real estate buyers, sellers, developers and investors have been advised to strictly comply with the updated rates for all property transfers. While some pockets have witnessed marginal decreases, the overall shift marks one of Islamabad’s largest valuation increases in years, reshaping market expectations and tax obligations across the capital.
