The Federal Board of Revenue has announced a significant reduction in the fair market valuation rates of immovable properties across multiple sectors of Islamabad. The revised rates have been lowered by as much as 33%, following strong objections from real estate associations and property dealers.
According to officials, stakeholders in the real estate sector had raised concerns that the previously set valuation rates were much higher than the actual market prices. This mismatch was creating difficulties for buyers, sellers, and investors, as taxes and transaction costs were being calculated on inflated values. After reviewing these concerns, the FBR issued a new notification revising the rates to better reflect current market conditions.
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The updated valuation table shows reductions across a wide range of residential and commercial sectors. For example, in Sector B-17, possession plot rates have been reduced from Rs30,000 to Rs21,000 per square yard, while non-possession plots have dropped from Rs15,000 to Rs10,500. Similarly, in C-14, rates have been cut from Rs30,000 to Rs21,000, and in C-15 from Rs25,000 to Rs17,500 per square yard.
Major changes have also been made in developed sectors. In D-12, the valuation rate has been reduced significantly from Rs130,000 to Rs91,000 per square yard, while G-13 has seen a drop from Rs100,000 to Rs70,000. Other sectors such as E-12, F-15, G-14, and several areas in the G and I series have also experienced notable reductions.
However, premium sectors like F-6 and F-7 have remained unchanged, with valuation rates still standing at around Rs210,000 per square yard. These areas continue to hold high value due to their prime location and strong demand.
This revision marks the second major adjustment in recent months, showing the FBR’s effort to align official property values with real market trends. Experts believe this move could encourage more property transactions, reduce tax-related disputes, and bring greater transparency to the real estate market in Islamabad.
