ISLAMABAD: A major revision to Islamabad’s property valuation rates, first announced in December 2025, is once again being widely discussed in early 2026 due to its expected impact on taxes and real estate transactions.
The Federal Board of Revenue (FBR) has sharply increased property valuation rates across the Islamabad Capital Territory (ICT) for 2026. The revision has surprised buyers, sellers, and investors. Many fear it will raise the overall cost of buying and selling property.
The increase was introduced through notification S.R.O. 2392(I)/2026. According to the updated valuation tables, rates have risen by 150% to 200% in many locations. The new valuations apply to 68 residential, commercial, and rural localities across Islamabad. Premium sectors and major housing schemes are among the most affected.
A major change is the introduction of a dual taxation approach. Property owners will now face tax calculations on both land value and superstructure (construction). FBR has also introduced fixed superstructure valuation rates. Buildings up to five years old will be assessed at Rs. 4,000 per square foot. Older structures will be valued at Rs. 3,000 per square foot.
In central Islamabad, the highest residential plot valuation is in Sector E-7, set at Rs. 600,000 per square yard. Sectors F-6 and F-7 are valued at Rs. 500,000, while F-8 stands at Rs. 450,000 per square yard. Other sectors such as F-10, F-11, and G-6 are valued at Rs. 350,000.
Commercial plots have seen the steepest jump. Valuations in E-7, F-6, F-7, and F-8 have reached Rs. 2.5 million per square yard. This is expected to affect commercial leasing and new construction plans.
Farmhouse and industrial areas have also been revised upward. Chak Shahzad farmhouses are now valued at Rs. 11.2 million per kanal. Industrial zones like I-9 and I-10 have been valued up to Rs. 18 million per kanal.
Market experts expect a short-term slowdown in transactions. Many investors may wait for clarity before making deals. The policy is seen as part of broader efforts to document real estate and increase tax collection.
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