A proposed commercial development plan in Islamabad’s Zone III has raised questions over land-use regulations, as construction in the protected area is generally subject to strict restrictions. The Capital Development Authority (CDA) is considering regulated commercial activity along a newly developed 3.8-kilometre road connecting Park Road with the Margalla Enclave housing project.
Commercial Development Planned Along New Road
The CDA and Defence Housing Authority (DHA) are jointly developing Margalla Enclave in the Kuri area. A 3.8km link road connecting Park Road to the housing project is also under development, with significant earthwork already completed.
The proposed route passes through Zone III, where construction is generally restricted under CDA regulations. However, authorities are now considering allowing regulated commercial development on both sides of the road.
The federal government has designated the route as an arterial or major road of Islamabad, enabling the CDA to apply relevant development and building regulations similar to those governing other major roads in the capital. The notification declaring the road an arterial route was issued on May 7, 2026.
Why Has the Plan Raised Concerns?
The proposal has attracted attention because private landowners in Zone III face strict restrictions on construction. Residents are generally prohibited from developing new houses in the protected area, while authorities have also taken action against unauthorised construction.
This has raised questions about how commercial development could be permitted along the new road while smaller-scale construction by private landowners remains restricted.
According to sources cited in the report, the proposed commercial development could potentially be undertaken through a CDA-DHA joint venture, following a model similar to the Margalla Enclave project. The CDA Board has also discussed the federal notification and the development and building regulations that could apply to the new road.
What Could Happen Next?
If formally approved, the plan could significantly change the land-use landscape around the new access road and create opportunities for commercial development in the area. However, questions surrounding equal treatment of private landowners, construction restrictions and future development rights in Zone III are likely to remain central to the debate.
For property owners, buyers and investors, the proposed changes could have implications for land values, development potential and future commercial activity along the new road.
