The Capital Development Authority (CDA) has announced a major revision in its building construction fee structure, marking the first update since 2017. The move comes amid rising property values across Islamabad, as the authority aims to regulate urban expansion and generate higher revenue. Property owners and developers will now pay increased charges based on the number of floors built under the newly revised Floor Area Ratio (FAR) system.
Under the updated regulations, each additional storey will attract extra fees, with the overall payment structure tied to the total floor space of the property. The CDA has also removed previous restrictions on building height, allowing developers to construct additional floors within the new payment framework. Officials explained that the revised rates were calculated based on the General Price Index (GPI), reflecting current market conditions and construction trends across the capital.
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In the new schedule, the FAR rate for Islamabad’s central commercial hub, Blue Area, has been set at Rs 4,951 per square foot. The highest commercial rates have been introduced for sectors F-7 and F-11, where charges now stand at Rs 8,758 and Rs 8,100 per square foot, respectively. Meanwhile, rates in G-5 Diplomatic Enclave and G-6 have been fixed at Rs 2,110, ensuring uniformity across high-value and diplomatic zones.
For residential areas, the revised FAR rate in sectors G-7 and G-8 is Rs 2,305 and Rs 2,585 per square foot, respectively. In contrast, the rate for I-8 has been set at Rs 4,100, while I-12 now stands at Rs 1,616. The CDA has also established new charges for class-three shopping centres in the E and F sectors, setting them at Rs 11,586 per square foot—the highest in the retail category.
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Additionally, the authority has updated rates for other property types, including Rs 1,899 for the Sabzi Mandi area, Rs 4,722 for cold storage sites, Rs 3,296 for hospitals, and Rs 2,054 for hotel plots. Institutional plots will now be charged Rs 1,283 per square foot, while flat sites are set at Rs 4,269. These revisions aim to streamline the city’s construction sector, promote organized development, and ensure that property fees reflect Islamabad’s growing economic and real estate value.