The Capital Development Authority (CDA), tasked with managing the city, has recently stirred debate by issuing notices to property owners for extending property leases by another 33 years. However, the terms and conditions of these extensions have left many property owners concerned and questioning the fairness of the process.
The Issue at Hand
The initial lease term of 33 years for most properties in Islamabad has expired, leaving property owners with no choice but to extend their leases to retain ownership. However, what has raised eyebrows is the hefty demand for payments based on current auction rates per square foot or square yard—a calculation method many deem unjustified. Property owners argue that they already purchased their properties decades ago and have been paying annual property taxes to CDA ever since.
This has created a contentious debate: should CDA base lease extension charges on the current auction rates? Or should there be a more reasonable approach considering the financial burden it places on property owners?
The Financial Impact
CDA’s demand for payments based on current auction rates has resulted in lease extension costs skyrocketing, placing a significant financial strain on property owners. For many, the cost is equivalent to purchasing a new property altogether.
Property owners’ frustration stems from primary concerns:
Double Financial Burden: Property owners have already paid the full purchase price of their properties decades ago and continue to pay annual property taxes. The additional lease extension charges feel like an unfair double taxation.