The Federal Board of Revenue (FBR) has announced a major reduction in property valuation rates in Islamabad, providing significant relief to buyers and sellers.
In a notification issued on Wednesday, the FBR has cut property rates by up to 35% in several sectors of the federal capital. This is the first major downward revision in property valuation tables in recent years.
According to the new rates:
- In old city sectors, the valuation for buildings up to five years old has been reduced from Rs 3,000 to Rs 2,500 per square foot.
- For older structures, the rate has been lowered to Rs 1,200 per square foot.
Significant reductions have also been made in important sectors, including B-17, C-15, D-12, E-11, G-13, G-14, H-13, I-14, K-2, and several others. The per square yard rates in these areas have been brought down substantially to bring them closer to actual market prices.
The FBR stated that the purpose of this revision is to align the official valuation rates with current market trends. Previously, the rates were considered much higher than the real market value, which often discouraged property transactions and led to under-reporting of sale prices.
This move is expected to encourage more transparent property buying and selling in Islamabad. It will also reduce the burden of high taxes on buyers and make property investment more attractive.
The FBR has clarified that separate notifications will be issued for rural areas under the jurisdiction of local authorities. The new rates for the urban sectors of Islamabad will come into effect immediately.
