FBR Property Valuation Rates: Islamabad Hit With Sharp Increase in 2025. The FBR sharply raises Islamabad property valuation rates for 2025, leaving buyers, sellers, and investors shocked especially across DHA, Bahria Enclave, and central sectors. These new valuation tables introduce higher taxes, double-layered levies, and dramatic sector-wise rate jumps that redefine the property market overnight.
What Triggered the Massive Increase in Property Valuation Rates?
The Federal Board of Revenue issued a new notification, S.R.O. 2392(I)/2025, implementing revised property valuation rates across the Islamabad Capital Territory (ICT).
These new rates ranging from 150% to 200% higher than previous valuations now apply across 68 commercial, residential, rural, and high-profile housing localities.
Key Highlights of FBR’s New Islamabad Property Valuation 2025
1. Property Values Raised by 150–200%
The FBR’s updated valuation tables now assess properties far above previous government estimates, bringing them closer to actual market value—though in many regions, they now exceed real-world prices.
2. Two Separate Taxes Now Apply to Property Owners
Under the new regime, ICT residents must pay tax on:
- Superstructure (construction)
- Actual land/property value
This dual-tax model marks a major shift from previous annual assessments.
3. Standardized Superstructure Valuation Across ICT
The FBR will assess buildings using fixed rates:
- Rs. 4,000 per sq. ft. for structures up to 5 years old
- Rs. 3,000 per sq. ft. for structures more than 5 years old
This change directly impacts:
- Houses
- Apartments
- Commercial buildings
- Flats and mixed-use spaces
Sector-Wise Breakdown: New Residential Plot Valuation Rates in Islamabad
Below is a clear comparison of the major rate changes implemented by the FBR.
Highest Residential Plot Valuations in 2025
| Sector | New Rate (Per Sq. Yard) |
|---|---|
| E-7 | Rs. 600,000 |
| F-6, F-7 | Rs. 500,000 |
| F-8 | Rs. 450,000 |
| F-10, F-11, G-6 | Rs. 350,000 |
| D-12, I-8 | Rs. 250,000 |
| E-11, G-8, G-9 | Rs. 180,000 |
Impact on Premium Housing Societies
The updated rates apply to all major developments, including:
- DHA Islamabad
- Bahria Enclave
- Gulberg Islamabad
- Zartaj Housing Scheme
- B-17 Multi Gardens
- Gandhara City
Real estate agents predict significant price corrections in these societies as investors recalibrate based on taxation pressure.
New Commercial Property Valuation Rates: A Major Market Shock
Commercial plots witnessed the steepest increases—making Islamabad one of the most expensive commercial real estate markets in Pakistan.
Commercial Rate Comparison
| Area / Sector | Commercial Rate (Per Sq. Yard) |
|---|---|
| E-7, F-6, F-7, F-8 | Rs. 2.5 million |
| F-10, F-11 | Rs. 2.2 million |
| G-5 to G-9 | Rs. 1.8 million |
| D-12, E-11 | Rs. 1 million |
These jumps will significantly influence:
- Commercial leasing
- New plaza construction
- High-rise apartment prices
- Investment feasibility studies
Farmhouse, Green Area & Industrial Valuations Also Revised Upwards
New Farmhouse Rates (Per Kanal)
| Location | New Rate |
|---|---|
| Chak Shahzad | Rs. 11.2 million |
| Orchard Scheme | Rs. 14 million |
| Gulberg Green | Rs. 17.55 million |
H3: Industrial Rates (Per Kanal)
- I-9 & I-10 Industrial Areas: Up to Rs. 18 million
Industrial investors now face higher capital gains tax, transfer fees, and operational cost structures—likely leading to higher product prices and reduced industrial expansion.
How Rural Islamabad Is Affected
Valuations in rural regions will follow the notification issued by the Additional Deputy Commissioner (Revenue) / District Collector dated July 1, 2025.
In case of conflicting assessments, the higher value will always apply.
This directly impacts:
- Village land transfers
- Farmhouse development
- Roadside commercial conversions
- Residential expansions toward Zone 4
Why Did FBR Increase Islamabad Property Valuation Rates?
1. Increasing Tax Revenue
Pakistan is working toward expanding the tax base, and real estate is among the least documented sectors.
2. Aligning DC Rates with Market Reality
Islamabad always had some of Pakistan’s widest gaps between:
- Market price (actual)
- Government valuation (for taxation)
The new policy attempts to bridge this gap.
3. Discouraging Speculative Flipping
High taxes reduce short-term investment, potentially stabilizing property bubbles.
4. IMF-Driven Documentation Requirements
As Pakistan moves into new economic agreements, greater transparency and valuation accuracy have become mandatory.
Market Impact: Will Real Estate Prices Go Up or Down?
The overnight increase has triggered mixed reactions.
Immediate Effects (0–3 Months)
- Decrease in property transactions due to higher taxes
- Capital freeze as investors wait for market correction
- Contract renegotiations in societies like DHA, Bahria Enclave, Gulberg
Medium-Term Effects (3–12 Months)
- Price readjustments especially in sectors now overvalued by the FBR
- Slowdown of new construction launches
- Shift toward apartment living, which remains relatively more tax-efficient
Long-Term Expectations
Economists foresee a more documented real estate economy, but affordability challenges may rise for the average buyer.
FAQs
Why has FBR increased Islamabad property valuation rates in 2025?
To boost tax collection, improve documentation, and align valuations with actual market prices.
How much have property rates increased in Islamabad?
Residential and commercial valuations have risen by 150% to 200% depending on sector and property type.
Do the new rates affect DHA and Bahria Enclave?
Yes, the revised valuation tables apply to all 68 housing localities, including DHA and Bahria Enclave.
What is the superstructure tax in Islamabad?
Building value is taxed at Rs. 4,000/sq.ft (under 5 years old) and Rs. 3,000/sq.ft (older than 5 years).
Will property prices go up or down after this change?
Market analysts predict short-term slowdown and possible price correction as buyers adjust to higher taxation.
Conclusion
The FBR sharply raising Islamabad property valuation rates marks one of the most significant real estate policy shifts in recent history. While the new rates aim to document the market and strengthen the tax system, buyers, sellers, and developers must now recalibrate their decisions carefully.
