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Vertical housing for F-7 and G-7: what the National Housing Policy 2026 proposes

A case study in the National Housing Policy 2026 proposes replacing informal settlements in F-7 and G-7 with apartments and commercial space. Here is what it says.

Bloom Property Team
4 November 2026 2 min read
Vertical housing for F-7 and G-7: what the National Housing Policy 2026 proposes
In this article
  1. The proposal for F-7
  2. The proposal for G-7
  3. How it would be paid for

The federal cabinet approved the National Housing Policy 2026 in August, and it favours building upwards to make better use of scarce urban land. A case study in the policy documents shows what that could mean in the heart of Islamabad: replacing the informal settlements, or katchi abadis, in F-7 and G-7 with vertical housing and mixed-use development.

These are proposals, and no start date has been given.

The proposal for F-7

The F-7 katchi abadi covers about 67,000 square yards, with around 900 informal houses. The case study proposes:

  • 60% of the land for mixed-use commercial and residential development
  • 40% for multi-level parking, access corridors and green spaces
  • A floor-area ratio of 1:12, which could allow more than 4.3 million square feet of built-up space

The development could include shopping malls, hotels, hospitals and community centres.

The case study puts potential net revenue at about Rs72 billion, based on market values. That is an estimate, not a budget or a confirmed return. A significant part of the proceeds is proposed for rehabilitating the people living there now.

The proposal for G-7

The katchi abadis in G-7/1, G-7/2 and G-7/3 cover about 145,000 square yards, with more than 2,000 informal structures. The proposal is for four-storey residential blocks with about 4,500 apartments of roughly 800 square feet each.

How it would be paid for

The G-7 apartments would be divided in two:

  • About 3,000 for existing residents of F-7 and G-7, offered to those eligible at highly subsidised rates on 20-year instalment plans
  • About 1,500 for the public at competitive market prices, to help pay for the subsidised units

The aim is to reduce the financial burden on the government. The plan also includes schools, healthcare centres, mosques and parks.

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Bloom Property Team

The team behind Bloom Property: NOC-approved listings from verified realtors across Islamabad.

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