By Ayaz Khan · 29 October 2026 · Last updated 29 October 2026
Interior Minister Mohsin Naqvi has announced a 1,000-acre “Manhattan-style” city in Islamabad, planned behind the Prime Minister’s House, along with an auction of large high-rise plots where developers pay no upfront price for the land. Instead, the government will take a share of the finished project’s inventory, with bidding starting at 15%. Towers must be at least 600 feet tall.
He made the announcement on Friday 23 October 2026 at the Saudi-Pak Real Estate Expo in Lahore. Below is what was actually said, how the inventory-share model works in numbers, what is still unclear, and what it means for developers, real estate marketing companies and agents in Islamabad and Rawalpindi.
Important: Everything below is based on the minister’s announcement as reported by the press. No official CDA auction notice, brochure or legal framework has been published yet. We will update this page when it is.
Key facts at a glance
| Item | What was announced |
|---|---|
| Size and location | About 1,000 acres behind the Prime Minister’s House, Islamabad |
| Layout | Residential and commercial complexes around a central park and a lake |
| Rules | A separate set of laws, regulations and SOPs (not yet published) |
| Plot sizes | 1, 3 and 6 acres (one report also mentions 2 acres) |
| Minimum height | 600 feet per tower |
| Land payment | None upfront. The government takes a share of the completed project’s inventory |
| Bidding | Starts at a 15% inventory share; bidders can offer more |
| Auction timing | Reported as December 2026; no official date yet |
| Completion deadline | Two years after approval (one report says three) |
| Approvals | One-window system at the Interior Ministry, expected in 3–4 weeks |
| Auction committee | Five members from NAB, SIFC, FIA and CDA, headed by a judge |
| Also announced | A 450-acre safari park in Islamabad |
Sources: The Express Tribune, Minute Mirror, Pakistan Observer, 23 October 2026.
How the inventory-sharing model works
Normally, CDA sells a commercial plot at auction and the developer pays the land price, usually in instalments, before or while building. Under the announced model, the developer pays nothing for the land at the start. In return, when the building is complete, a share of its units (apartments, offices, shops or hotel rooms) belongs to the government.
The auction is decided by how big a share you offer. The starting point is 15%. A bidder who offers 20% or 25% beats one who offers 15%.
A simple example
Suppose a developer wins a plot and builds a tower with 400 apartments. This is an illustration only; the real terms have not been published.
| Share offered to government | Units to government | Units the developer can sell |
|---|---|---|
| 15% (starting bid) | 60 | 340 |
| 20% | 80 | 320 |
| 25% | 100 | 300 |
Every extra 5% the developer bids costs 20 apartments out of 400. So the winning bid depends on how much each unit is expected to sell for, and how much the developer saves by not paying for the land upfront.
Why no upfront payment?
Price is the likely reason. In mid-October 2026, a CDA auction of five hotel plots received no successful bids at a reserve price of Rs1.9 million per square yard; investors reportedly said that was too high for projects to be viable (Pakistan Observer). At that rate, a single one-acre plot (4,840 square yards) would cost about Rs9.2 billion before any construction starts. Removing the land payment lowers the money a developer needs on day one, which is exactly what large foreign and local investors have been asking for.
How tall is 600 feet?
600 feet is about 183 metres. Depending on floor height, that is roughly 45 to 55 storeys. Every tower in the new city would have to reach at least that height.
Height has long been controlled in Islamabad for flight safety. In 2022, a Civil Aviation Authority study (with the Pakistan Air Force) recommended allowing buildings of up to 1,000 feet in the Blue Area, and capping buildings beyond F-10 at 450 feet, with CAA approval (Dawn). The new city’s exact boundaries have not been published, so developers will need to confirm the CAA and other clearances that apply to each plot.
Who can realistically bid?
On paper, anyone can take part. In practice, a 600-foot tower on a 1-to-6-acre plot, finished within two or three years, needs very large capital, strong construction partners and experience with high-rise approvals. Expect bidders to be:
- Large Pakistani developers who already build high-rises in Islamabad, Rawalpindi, Lahore or Karachi
- Gulf investors and consortia, especially from Saudi Arabia, since the announcement was made at a Saudi-Pak expo
- Joint ventures between a local developer (approvals, sales network) and a foreign investor (capital)
Individual buyers and small investors will not bid directly. They will come in later, as buyers of units once projects launch.
What is still unclear
Before anyone commits money, these questions need official answers:
- The legal framework. The city is meant to run under “separate laws, rules and SOPs”. None have been published.
- Exact location and boundaries behind the PM House, and which plots will be offered in the first round.
- The completion deadline. Reports say two years; one says three. Penalties for missing it are unknown.
- How the government’s share is handed over: as specific units chosen at the start, a mix of unit types, or the cash value at sale.
- Who manages and sells the government’s units, and whether they compete with the developer’s own sales.
- The auction date and documents. A December auction has been reported, but CDA has not issued a notice or brochure.
- Height and aviation clearances for each plot.
We will update this article as official details come out.
What it means for real estate companies in Islamabad and Rawalpindi
For developers: start preparing now if you plan to bid. You will need a feasibility study at different share levels (15%, 20%, 25%), construction partners who can deliver a 600-foot tower on time, and financing for construction itself, since the land is free but the building is not.
For real estate marketing companies: each winning tower may need a sales partner for hundreds of units. Companies with a strong sales team, an overseas Pakistani network and clean booking processes will be best placed to win marketing mandates.
For agents and buyers: beware of fake “Manhattan city” files. No plots, files or units in this city are on sale today. If anyone offers you a “booking” or “file” in the Manhattan-style city before the auction and an official project launch, treat it as a red flag. Our guide on how to check if a plot file is genuine explains what to verify before paying.
Tracking a government inventory share: an operational challenge
If the model goes ahead, every winning developer will have three kinds of units in one building: units owned by the government, units booked or sold to buyers, and units still available. Keeping these separate across hundreds of units, instalment plans and sales agents is exactly where errors happen: a government unit sold by mistake, or the same apartment promised to two buyers.
This is the kind of work a real estate ERP is built for: a live inventory where each unit has an owner and a status, bookings that lock the unit, instalment tracking and agent commissions in one place. You can see how Baalki handles inventory, bookings and payments on our features page.
The safari park and theme park
At the same event, Naqvi announced what he called Asia’s largest safari park, about 450 acres in Islamabad. A few days later, the Interior Ministry said Saudi investors would finance Pakistan’s first theme park in Islamabad, under an MoU signed in Lahore between the chairman of the Saudi-Pakistan Business Council and the CDA chairman, with CDA providing the land (Arab News). Together, these signal a push to attract Gulf investment into the capital’s real estate and leisure sector.
مختصر خلاصہ (Urdu summary): وزیر داخلہ محسن نقوی نے اسلام آباد میں وزیر اعظم ہاؤس کے پیچھے 1,000 ایکڑ پر “مین ہیٹن طرز” کا شہر بنانے کا اعلان کیا ہے۔ یہاں کم از کم 600 فٹ اونچی عمارتیں بنیں گی۔ زمین کی قیمت پہلے نہیں دینی ہوگی، بلکہ حکومت مکمل منصوبے کے یونٹس میں کم از کم 15 فیصد حصہ لے گی۔ ابھی تک سی ڈی اے کا کوئی سرکاری نوٹس جاری نہیں ہوا، اس لیے اس شہر کی کوئی فائل یا بکنگ نہ خریدیں۔
Frequently asked questions
Where is the Manhattan-style city in Islamabad?
It is planned on about 1,000 acres behind the Prime Minister’s House. The exact boundaries and plot map have not been published yet.
When is the CDA high-rise auction?
Press reports say December 2026, but CDA has not yet issued an official auction notice or brochure. Check CDA’s official website and newspaper notices before relying on any date.
Do developers pay for the land?
Not upfront, according to the announcement. Instead, the government receives a share of the completed project’s inventory, starting at 15%, and bidders can offer more.
What is the minimum building height?
At least 600 feet (about 183 metres, roughly 45–55 storeys) per tower.
Can I buy a plot or file in the Manhattan-style city now?
No. Nothing is on sale yet. Anyone selling files or bookings in this city before the official auction and project launches should be treated with suspicion.
Who will run the auction?
A five-member committee with members from NAB, SIFC, FIA and CDA, headed by a judge, according to the minister. Approvals are planned through a one-window system at the Interior Ministry.
Bottom line
The Manhattan-style city could change how Islamabad’s land is sold: from cash auctions that recently failed to attract bids, to inventory sharing that brings in developers with less money upfront. But until the legal framework, plot map and auction documents are published, it remains an announcement. Developers should start their homework now; buyers should wait for official launches and avoid anyone selling “files” today.
Planning a high-rise or a large project? Baalki keeps every unit’s owner, status, booking, instalments and commissions in one live system, including units that belong to a partner or the government. Book a free demo to see it.
This article is general information based on press reports, not investment or legal advice.