The Federal Board of Revenue (FBR) has announced updated property valuation criteria for Karachi, FBR Updates affecting commercial properties, industrial plots, residential buildings, and high-rise developments. These updates, issued under SRO 144(I)/2025, aim to bring transparency and accuracy to property taxation in Pakistan’s largest metropolitan city.
Key Changes in FBR Property Valuation FBR Updates
The new valuation framework considers multiple factors, including plot type, covered area, additional floors, and property usage. Below are the essential updates:
1. General Property Valuation Rules FBR Updates
- Property values are listed per square foot in Pakistani Rupees.
- Amenity plots will be valued at 50% of residential plots in the respective area.
- If a property does not fit into any specified category, it will be valued at the rate of the highest adjacent property category.
- If land is granted for multiple purposes (residential, commercial, or industrial), the valuation will be based on the average prescribed rate.
2. Commercial & Industrial Property Valuation FBR Updates
- Commercial properties are valued per square foot of the covered area, including additional floors.
- Industrial properties are valued per square foot of both the plot area and covered area.
- Commercial properties in the Defence Housing Authority (DHA) facing any Khayaban will see a 15% increase in valuation.
- The value of commercial built-up properties (excluding the ground floor) will be reduced by 25%.
- Basements in commercial buildings will be valued at 20% of the ground floor’s value.
3. Residential Property Valuation
- The value of a multi-storey residential building will increase by 25% per additional storey.
- Flats and apartments will see a reduction in valuation as per FBR’s set criteria.
- Built-up residential properties, including basements and first floors, will be eligible for valuation reductions.
- Certain categories of residential plots will have a 20% decrease in valuation.
4. High-Rise Buildings
- High-rise buildings are defined as those with more than five storeys.
- The valuation for high-rises will include an extra 5% increase.
Why This Matters?
This updated property valuation mechanism directly impacts property buyers, sellers, and investors. With accurate valuation benchmarks, property tax assessments and real estate transactions will become more transparent, ensuring a fair property market in Karachi.
Impact on Property Owners & Investors
- For property owners: The new valuations might increase tax liabilities, especially for high-value properties.
- For investors: More clarity on property pricing will streamline investment decisions in Karachi’s booming real estate market.
- For buyers: Knowing the updated valuation criteria helps in negotiating fair property prices.
https://www.thenews.com.pk/print/1281909-fbr-updates-valuation-of-properties-in-karachi
