In a major relief for property buyers and sellers in the federal capital, transfer fees on real estate transactions have been significantly reduced.
The Capital Development Authority (CDA) has announced a substantial cut in transfer fees for all properties under its jurisdiction. Under the new policy, buyers will now pay only 1% transfer fee based on the valuation set by the Federal Board of Revenue (FBR), instead of the previous 3% rate.
This move is expected to considerably reduce the financial burden on property transactions and may help boost activity in the real estate market.
The decision was taken during the third CDA Board meeting held on April 9, 2026. As part of the new policy, the earlier notification issued in July 2025 has been withdrawn.
The revised fee structure has come into effect immediately, and CDA officials have directed all relevant departments and stakeholders to ensure prompt implementation of the reduced rates without any delay.
CDA reduces property transfer tax to 1 percent
The Capital Development Authority (CDA) earlier approved a decrease in property transfer tax, a strategic initiative designed to foster investment in the real estate sector within the federal capital.
This decision was made during the third CDA Board meeting convened on Thursday at the CDA Headquarters, presided over by the Chairman of CDA and Chief Commissioner of Islamabad, Sohail Ashraf.
The meeting saw the participation of senior officials, including board members and Muhammad Ali.
Previously, the fee was established at 3 percent of the property’s value as per the notification from the Federal Board of Revenue (FBR), but it has now been reduced to only 1 percent.
Officials indicated that this initiative is expected to boost investment activities and offer direct relief to individuals involved in property transactions.
CDA Chairman, Ashraf stated that, instead of raising property tax in Islamabad, the focus should be on expanding the tax base.
Additionally, the board sanctioned the awarding of a contract to engage creative consultants, referred to as a “city curator,” to assist in transforming Islamabad into a cultural and tourism center.
Officials verified that all procurement and legal prerequisites for the appointment have been fulfilled.
