The Federal Board of Revenue (FBR) has reduced the valuation of immovable properties in Islamabad by 10 to 30 percent across various sectors of the federal capital, according to a notification issued through S.R.O. 644(I)/2026 on Thursday.

Under the revised valuation tables, the FBR has redetermined fair market values of residential and commercial properties, lowering the benchmark rates for superstructures and plots in multiple urban sectors.

As per the notification, the value of residential and commercial superstructures up to five years old has been reduced to Rs. 2,500 per square foot, down from Rs. 3,000 per square foot. For buildings older than five years, the rate has been lowered from Rs. 1,500 to Rs. 1,200 per square foot.

For rural areas of Islamabad Capital Territory, property valuations will continue to be determined according to rates notified by the Additional Deputy Commissioner (Revenue) / District Collector Islamabad under the July 1, 2025 notification. The FBR clarified that, in the event of any conflict between valuation rates in a particular area, the higher of the two will apply.

Sector-wise reductions

The revised valuation tables show significant reductions across several sectors:

• In B-17 and C-14, possession-based residential plot rates have been reduced from Rs. 30,000 to Rs. 21,000 per square yard, while non-possession plots in B-17 have been cut from Rs. 15,000 to Rs. 10,500 per square yard.
• In C-15, rates have been lowered from Rs. 25,000 to Rs. 17,500 per square yard, and in C-16 from Rs. 20,000 to Rs. 14,000 per square yard.
• In D-12, constructed residential flat rates have been reduced from Rs. 15,000 to around Rs. 10,500 per square foot, while constructed commercial property rates have been adjusted to around Rs. 17,500 per square foot.
• In D-13, residential plot rates have declined from Rs. 16,000 to Rs. 11,200 per square yard.

Among high-end sectors:

• In E-7, residential plots are now valued at Rs. 225,000 per square yard, while constructed commercial properties range between Rs. 10,000 and Rs. 100,000 per square foot.
• In E-11, rates range between Rs. 70,000 and Rs. 100,000 per square yard.
• In E-12, valuation has been fixed at Rs. 39,200 per square yard.

Further adjustments include:

• G-13: reduced from Rs. 100,000 to Rs. 70,000 per square yard
• G-14: ranging between Rs. 35,000 and Rs. 63,000 per square yard
• G-15: between Rs. 7,000 and Rs. 17,500 per square yard
• G-16: between Rs. 6,000 and Rs. 10,500 per square yard
• G-17: reduced from Rs. 25,000 to Rs. 17,500 per square yard

Similarly, rates in surrounding localities have also been revised downward:

• Margalla Town: from Rs. 55,000 to Rs. 38,500 per square yard
• Chak Shahzad: from Rs. 50,000 to Rs. 35,000 per square yard
• Banigala: from Rs. 35,000 to Rs. 24,500 per square yard
• Park View: reduced to Rs. 24,500 per square yard

Commercial areas

In major commercial zones:

• Blue Area (Jinnah Avenue): constructed flats fixed at Rs. 100,000 per square foot
• Blue Area (Fazl-e-Haq Road): ranging between Rs. 8,000 and Rs. 50,000 per square foot
• New Blue Area and sectors G-9, F-9, G-8 and F-8: rates between Rs. 40,000 and Rs. 150,000 per square foot have been retained unchanged

The revised valuation tables are expected to impact property taxation, transaction costs, and documentation values across Islamabad’s real estate market.