Islamabad: The Capital Development Authority (CDA) has announced a major revision to its building construction fee structure — the first such update since 2017 — as part of efforts to regulate urban development and increase revenue amid rising property values across Islamabad.
Under the new regulations, property owners and developers will now be charged based on the Floor Area Ratio (FAR), with additional fees applied for each extra storey constructed. The authority has also removed previous restrictions on building height, allowing developers to add more floors within the revised payment framework.
Officials said the new rates have been calculated using the General Price Index (GPI) to reflect current market conditions and construction costs. The updated fee schedule applies to residential, commercial, and institutional properties across the capital.
In Islamabad’s main commercial zone, Blue Area, the FAR rate has been set at PKR 4,951 per square foot. The highest commercial rates have been fixed for sectors F-7 and F-11, at PKR 8,758 and PKR 8,100 per square foot, respectively. In contrast, G-5 Diplomatic Enclave and G-6 will see charges of PKR 2,110 per square foot.
For residential sectors, the revised FAR rate in G-7 and G-8 has been set at PKR 2,305 and PKR 2,585 per square foot, while I-8 stands at PKR 4,100 and I-12 at PKR 1,616. The CDA has also revised charges for class-three shopping centres in the E and F sectors, setting the highest retail rate at PKR 11,586 per square foot.
Updated rates for other property categories include PKR 1,899 for Sabzi Mandi plots, PKR 4,722 for cold storage facilities, PKR 3,296 for hospitals, PKR 2,054 for hotel sites, PKR 1,283 for institutional plots, and PKR 4,269 for flat sites.
CDA officials said the revision aims to promote transparent, organized, and market-aligned development in the city. The new framework is expected to streamline the approval process, encourage vertical expansion, and ensure that construction fees better reflect Islamabad’s growing real estate and economic value.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
