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The Federal Board of Revenue (FBR) has sharply increased property valuation rates in most areas of Islamabad by 15 to 75 percent, while keeping Defence Housing Authority (DHA) valuations unchanged, under a newly issued notification aimed at aligning tax values with market realities.
According to SRO.163(I)/2026, issued on Monday, the FBR has replaced earlier valuation tables and introduced revised rates for residential and commercial properties across the Islamabad Capital Territory (ICT). However, DHA has been excluded from the new tables, and its property values will continue under previously notified rates.
An FBR official said, “The revised valuations were finalized after consultations with real estate stakeholders to balance market trends and public concerns.”
Earlier, the FBR had issued SRO.2392(I)/2025, significantly increasing property values across Islamabad. Following strong resistance from property dealers and investors, the notification was suspended until January 31, 2026. The new SRO replaces it with adjusted rates, though some areas still face steep increases.
Under the revised framework, the value of residential and commercial buildings has been fixed at Rs. 3,000 per square foot for structures up to five years old, while buildings older than five years will be valued at Rs. 1,500 per square foot. For rural areas of ICT, valuations will be set by the district administration, and in case of any conflict, the higher value will apply.
The increase is expected to raise capital gains tax, withholding tax, and stamp duty, making property transactions more expensive in non-DHA sectors of Islamabad. Meanwhile, a separate notification is expected for Rawalpindi, where property values are also likely to be revised upwar
