Federal Excise Duty on Property Transfer Abolished – A Game Changer for Real Estate in Pakistan

In a bold and highly welcomed move, the Government of Pakistan has officially abolished the Federal Excise Duty (FED) on property transfers. This announcement comes as a breath of fresh air for buyers, sellers, investors, and developers across the country. The decision is set to revitalize the real estate and construction sectors, which are key contributors to the national economy.

At Sultan’s Group of Companies, we recognize how impactful this decision is for our clients and the real estate industry as a whole. Let’s take a deeper look at what FED was, why it was problematic, and how its removal opens new doors for investment, ownership, and economic growth.

What is Federal Excise Duty (FED) on Property?

Federal Excise Duty is a type of indirect tax imposed by the federal government on certain goods and services. In recent years, it was also applied to property transactions, particularly on the transfer of ownership. This added a significant cost burden on property buyers and investors, increasing the overall price of acquiring real estate.

How FED Affected the Real Estate Market

The imposition of FED on property transfers caused concern in the market. Buyers, especially first-time homeowners and mid-range investors, felt discouraged due to the additional financial pressure.

Here’s how FED negatively impacted the real estate sector:

• Increase in transaction costs

• Decrease in market activity and investment volume

• Delay in property registrations and ownership transfers

• Reduced confidence among local and overseas investors

• Negative impact on construction jobs and allied industries

  FED Abolishment – What Does It Mean?

  The government’s recent decision to abolish FED on property transfers is a clear signal of support for the real estate and construction sectors. It directly reduces the cost of buying property and makes the process more affordable and investor-friendly.

  Key Benefits of This Decision

  1. Boost in Property Transactions

  With the removal of extra tax, buyers and sellers are more likely to engage in property deals. This will lead to an increase in sales volume and market activity, especially in growing areas like Bahria Town Phase 8, Rawalpindi.

  2. Increased Investor Confidence

  Investors, both domestic and overseas, now have greater confidence in the Pakistani real estate market. The reduction in cost and complexity makes it more attractive to put money into real estate projects, whether residential, commercial, or rental.

  3. Revival of the Construction Sector

  As property demand increases, so will the need for new construction. This move is expected to benefit contractors, builders, laborers, and material suppliers – contributing to job creation and economic growth.

  4. Affordable Housing Opportunities

  First-time buyers and middle-income families will especially benefit. The removal of FED means they can now afford homes they previously couldn’t, making homeownership more accessible.

  5. Legal and Transparent Dealings

  With fewer taxes and hidden charges, property dealings become more transparent and legally streamlined. This supports the government’s goal of promoting formal, tax-paying investment and discouraging informal property transactions.

  Sultan’s Group Welcomes the Change

  At Sultan’s Group of Companies, we welcome this progressive step by the government. As a trusted name in real estate and construction, we believe this decision will drive new growth and stability in the sector.

  We are already seeing a rise in inquiries and interest for:

  • Brand new designer houses (7, 10, 11.5 & 23 Marla)

  • Ready-to-move properties in Bahria Town Phase 8

  • Rental income investments in commercial zones

  • Construction-on-demand services for custom homes

    What Should Buyers & Sellers Do Now?

    If you’ve been planning to buy, sell, or invest in property — this is the best time to act. With reduced taxes and growing opportunities, Bahria Town and other premium areas are set to see a surge in demand.

    Whether you’re looking for a luxury villa, a secure rental property, or a custom-built home, the removal of FED ensures you’ll save more and gain more.

    📞 Let’s Help You Make the Right Move

    At Sultan’s Group of Companies, our expert real estate advisors are here to guide you every step of the way — from property selection to legal documentation, transfers, and possession.

    📍 Visit our office

    1st floor plot No. 46 square commercial, phase VII, Bahria town, Rawalpindi, Rawalpindi, Pakistan
    📞 Or contact us today to schedule a consultation.

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