The Capital Development Authority has announced a time-bound relief package for the hotel sector through rationalization of Floor Area Ratio charges, following approval from the federal cabinet.
The initiative allows hotel and motel projects to increase their Floor Area Ratio under a structured framework, aiming to encourage vertical development and attract new investment in Islamabad’s hospitality sector.
Officials said the relief will remain available until December 31, 2028, giving developers a defined window to expand existing projects or launch new ones under the revised policy.
The facilitation applies specifically to projects seeking additional built-up area and is part of broader efforts to improve ease of doing business and support high-quality urban development in the capital.
To ensure compliance, the Capital Development Authority has made it mandatory for developers to provide a bank guarantee or performance bond equivalent to the value of the additional FAR granted. This is intended to ensure timely completion of projects under the new terms.
The authority also warned that failure to meet deadlines or comply with conditions will result in withdrawal of the relief, with applicable charges becoming immediately recoverable.
Officials added that the incentive is strictly linked to specific projects, and any unauthorized transfer or change in ownership will void the facilitation.
The CDA stated that the move is aimed at promoting sustainable urban growth while maintaining regulatory oversight in Islamabad’s real estate and hospitality sectors.