ISLAMABAD: The Capital Development Authority’s (CDA) board has approved a new policy regarding commercial plots, enhancing the floor area ratio (FAR) and duration of the payment plan for such pieces of land from one to two years.

The board, which met at the CDA headquarters with Chairman Anwarul Haq in the chair on Tuesday approved the said policy besides other decisions. It decided that instead of the full payment, the investors would get possession of the plots after paying only 50pc of the amount, which would allow them to start construction (without rights and registration of 3rd party with the CDA). It was also decided that the CDA would approve the building plan after receiving 25pc payment.

In the case of instant payment, the investors will get a 15pc rebate instead of the existing 10pc while those paying in US dollars will get a 20pc rebate. According to the sources, the new policy has increased the FAR to 1:10 from 1:9 for plots measuring 3,000 to 4,999 square yards.

Similarly, plots measuring 5,000 sq yards and above would have 1:12 FAR instead of existing 1:10. The board also decided that investors would also be allowed to have underground parking in the “right of way of roads” to meet the requirement at their own cost.

Payment plan enhanced from one to two years; work on Iran Avenue to begin soon

Speaking to Dawn, one of the committee members elaborated that the building owners would be allowed to have underground parking on the right of way if they had a minimum of three basements reserved for parking. Since the fourth floor for a parking lot is not feasible the developers will be given the option to meet their parking requirement through an underground parking facility in the right of way. “But first they will need to have three basements for parking,” he said.

The board decided that hotel plots measuring 10,000 sq yards would be allowed 1:8 FAR instead of 1:6, with 10pc of permissible FAR for commercial/business centres (inward oriented). Similarly, they will need to allocate 20 per cent of “room areas for serviced apartments”.

A board member said that the new policy is applicable across Islamabad. If the developers want to enhance the FAR of their existing buildings, they will have to pay the CDA for additional floors. The new rates will be worked out by the finance wing.

The CDA board also decided that the work on the remaining portion of 7.5 km of Iran Avenue (formerly 11th Avenue) should be started as soon as possible.

The board approved a summary of the engineering wing for hiring the services of a consultant for the design work of the said road before floating tenders for construction. The federal cabinet changed the name of the road from 11th Avenue to Iran Avenue.

Its first phase from D-12 (where it links with Margalla Road) to E-11 is already constructed and inaugurated by Iranian President Ebrahim Raisi and Prime Minister Shehbaz Sharif on Monday. Its second phase, which is yet to be built, starts from E-11 and would culminate at Karnal Sher Khan Road, formerly I.J.P Road.

Published in Dawn, April 24th, 2024