FBR Property Valuation Increase in Islamabad Excludes DHA Areas
The Islamabad property valuation hike has triggered strong reactions across the real estate sector. Recently, the Federal Board of Revenue increased official property rates in most city areas. However, DHA zones remain outside the revised tables.
According to the notification, valuation rates rose between 15 and 75 percent. As a result, buyers and sellers now face higher tax assessments. This move directly affects both residential and commercial properties.
FBR Issues New Valuation Notification
The Federal Board of Revenue issued Notification SRO. 163(I)/2026 earlier this week. Through this notice, the authority revised property valuation tables across Islamabad. However, it deliberately excluded Defense Housing Authority sectors.
Officials confirmed that older DHA rates will continue to apply. Therefore, property transactions in DHA will not face immediate tax changes. This decision offers temporary relief to investors in those areas.
Why DHA Areas Were Excluded
Sources suggest that DHA valuations remain unchanged due to administrative reasons. In addition, authorities may review DHA rates separately at a later stage. For now, no timeline exists for a revised DHA notification.
Meanwhile, properties outside DHA will follow the new valuation structure. For example, some sectors saw sharp increases near the upper limit. As a result, transfer costs and capital gains taxes may rise.
Impact on Buyers and the Property Market
The Islamabad property valuation hike will likely influence buying decisions. Higher official values usually translate into increased tax liabilities. Therefore, affordability may become a concern for many buyers.
However, experts believe transparency remains the key goal. In addition, the government aims to narrow the gap between market prices and declared values. This approach could improve revenue collection over time.
A separate notification for Rawalpindi is also expected soon. Authorities plan to revise property valuations there as well. As a result, the broader twin cities market may experience price adjustments.
Despite concerns, analysts urge calm. Market activity often stabilizes after initial reactions. Therefore, long term investors may still find opportunities in emerging sectors.
