The Federal Board of Revenue (FBR) has officially notified a significant increase in the valuation of immovable properties across Islamabad. While the move aims to bring tax assessments closer to actual market prices, the new rates notably exclude the Defence Housing Authority (DHA) from the updated list.
Key Highlights of the New Valuation
The FBR’s latest notification (SRO.163(I)/2026) replaces previous attempts to hike rates, following a brief suspension due to pushback from real estate stakeholders.
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Average Increase: Assessed values for residential and commercial properties have climbed between 15% and 75%.
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Superstructure Rates: Newer Buildings (Up to 5 years old): Valued at Rs3,000 per square foot.
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Older Buildings (Over 5 years old): Valued at Rs1,500 per square foot.
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Rural Areas: Valuations for rural sectors remain under the jurisdiction of District Collector (DC) rates.
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The "Higher Rate" Rule: If there is a discrepancy between FBR and DC rates for a specific location, the higher value will be used for tax purposes.
Why the Change?
This move is part of a broader effort to rationalize property taxes and curb "black money" in the real estate sector. The FBR originally proposed even steeper hikes in late 2025 (SRO.2392), but those were suspended until January 31, 2026, to allow for consultations with real estate agents. The current SRO represents a "middle-ground" compromise with reworked figures.
The DHA Exclusion
One of the most striking aspects of the new policy is the formal exclusion of DHA from the revised ICT valuation framework. Properties in these areas will not be subject to these specific updated FBR rates, a move that is likely to spark debate among investors and homeowners in other sectors.
