CDA cuts property transfer fee in Islamabad by two-thirds

Islamabad: The Capital Development Authority (CDA) has reduced the property transfer fee in Islamabad by two-thirds, marking a significant revision in transaction costs for buyers and sellers in the federal capital’s real estate market.

According to officials, the fee has been slashed from 3 per cent to 1 per cent of the property value, representing a major downward adjustment in charges previously applicable on property transfers under the authority’s jurisdiction.

The decision was taken during a meeting of the CDA Board chaired by the authority’s top management, where members reviewed administrative and financial matters related to property transactions and revenue structures.

Officials said the revised rate will apply to all properties falling within CDA-controlled areas of Islamabad and will be implemented with immediate effect following the formal notification.

Read: Govt proposes tax-free property plan for expats

The move is expected to reduce the overall cost of property transactions, particularly for buyers and sellers engaged in frequent transfers in the capital’s residential and commercial sectors. Market stakeholders have often argued that high transaction costs contribute to slower activity in the real estate sector.

Under the previous structure, property transfers in Islamabad were subject to a 3 per cent fee based on the Federal Board of Revenue (FBR) assessed value of the property. The revised 1 per cent rate effectively brings substantial relief to those involved in property dealings.

The reduction is also being viewed as part of broader efforts to streamline real estate transactions and improve market activity in Islamabad, where demand for housing and commercial property continues to grow steadily.

Officials added that the revised fee structure will be enforced across all applicable CDA-administered areas, and concerned departments have been directed to ensure smooth implementation.