Islamabad, Feb 12: The Federal Board of Revenue (FBR) has updated the methodology for determining property values in Karachi. This revision applies to commercial, industrial, residential, and high-rise buildings, as well as amenity plots. The modifications, issued under S.R.O. 144(I)/2025, clarify valuation concerns previously raised by real estate professionals and tax experts. While the valuation tables from S.R.O. 1724(l)/2024 remain unchanged, the revised notification provides more precise calculation guidelines for different property categories.
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Key Amendments in Property Valuation:
- Unit of Measurement: Property values are calculated per square foot of covered area on the ground floor, including additional floors.
- Amenity Plots: The valuation of these plots is set at 50% of the respective residential plots.
- Built-Up Commercial Property: Assessed per square foot of covered area on both the ground and additional floors.
- Built-Up Industrial Property: Valuation is based on the total plot area plus the covered area.
- Multi-Storey Residential Buildings: Each additional storey increases the valuation by 25% of the ground floor’s value.
- Unspecified Properties: Properties not categorized in the valuation table are assigned values based on the nearest higher property type.
- Multi-Purpose Land Use: For properties allocated for multiple uses (residential, commercial, or industrial), the valuation is determined using the average rate of the applicable categories.
- Flats and Apartments: Defined as independent residential units with distinct property numbers.
- Additional Storey in Residential Buildings: If an upper floor includes at least one bedroom and a bathroom, it is counted as an additional storey.
- Basement Valuation: In commercial properties, basement values are set at 20% of the ground floor’s valuation.
- High-Rise Definition: Buildings exceeding five storeys above ground level.
Reduction in Built-Up Property Valuation:
| Age of Structure | Residential Reduction | Flats/Apartments Reduction | Commercial Reduction |
|---|---|---|---|
| Up to 5 years | No reduction | No reduction | No reduction |
| 5 to 10 years | 5% | 10% | No reduction |
| 10 to 15 years | 7.5% | 20% | 5% |
| 15 to 25 years | 10% | 30% | 8% |
| More than 25 years | Open plot value | 50% | 10% |
Additional Adjustments:
- Commercial plots in DHA facing Khayaban: Value increased by 15%.
- Commercial built-up properties (excluding ground floor): Value reduced by 25%.
- Residential plots in the following categories receive a 20% reduction:
- Nala-facing plots
- Commercial-facing plots
- Plots facing schools, mosques, or graveyards
- Rear-side or triangular plots
This revision ensures a transparent and standardized approach to property valuation, benefiting both investors and property owners in Karachi.
