FBR Islamabad property rates just changed again. Following the 2025 hike, the Federal Board of Revenue issued SRO 163(I)/2026 to recalibrate values. This guide breaks down the new residential and commercial valuation rates, construction costs, and how they impact your capital gains and withholding tax payments today.
Today, the Federal Board of Revenue (FBR) finally offered some clarity. The new notification, SRO 163(I)/2026, officially replaces previous rates.
The government initially increased values by 15% to 75%. However, immediate backlash from the Islamabad Chamber of Commerce forced a revision. As of February 3, 2026, the FBR has balanced these rates to mirror actual market transactions. If you are buying or selling in the capital, these numbers dictate your tax outgo.
New Sector-Wise Property Valuations
The FBR slashed the unrealistic December peaks. High-end sectors like E-7 and F-6 saw the most significant corrections. The board now categorizes sectors based on possession status and development levels.
| Sector Location | Previous High (Dec 2025) | Current Rate (Feb 2026) |
| Sector E-7 | Rs 600,000 / sq yd | Rs 225,000 / sq yd |
| Sector F-6 / F-7 | Rs 500,000 / sq yd | Rs 210,000 / sq yd |
| Sector B-17 (Developed) | Rs 50,000 / sq yd | Rs 30,000 / sq yd |
Construction Costs and Tax Deadlines
The FBR now taxes the “superstructure” separately from the land. This changes how you calculate total property value.
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New Construction (0-5 years): Rs 3,000 per square foot.
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Old Construction (5+ years): Rs 1,500 per square foot.
These rates directly determine your Capital Gains Tax (CGT) and Withholding Tax (WHT). Sellers must pay CGT based on these official values, regardless of the private deal price. Buyers pay WHT under Section 236K at the time of transfer.
This update ends the market stalemate. By lowering the rates from the December highs, the FBR aims to resume property transfers. Investors holding multiple plots must also use these values to calculate Section 7E (Deemed Income Tax).
The previous 2022 valuation tables no longer exist. Always check the latest SRO before heading to the Registrar’s office or CDA. Staying updated ensures you avoid penalties or incorrect tax filings.
