Karachi, December 6, 2023 – The Association of Builders and Developers (ABAD) has vehemently opposed the recent increase in property valuation rates in Karachi, stating that the decision was made without consultation with ABAD, as announced by ABAD Chairman Asif Sumsum on Wednesday.
Expressing his dismay, Chairman Asif Sumsum highlighted that the District Administration unilaterally raised property valuation rates, disregarding the input of ABAD, a crucial stakeholder in the construction industry. In response, Sumsum urged Caretaker Chief Minister Sindh Justice (Retired) Syed Maqbool Baqir and Caretaker Revenue Minister Younis Dagha to intervene and address this pressing issue.
Sumsum emphasized that the current real estate market is facing a challenging period with property prices experiencing a decline of approximately 40 percent. In this context, the abrupt increase in property valuation rates appears incomprehensible and is anticipated to inflict irreparable damage on the already struggling construction sector.
The ABAD Chairman further argued that the construction industry is grappling with numerous existing taxes, and the elevated valuation rates will impose an additional heavy burden on builders, developers, and the general public aspiring to own homes. He asserted that the move is counterproductive to the ongoing efforts of ABAD members, who continue construction activities nationwide, contributing significantly to the economy.
Sumsum underscored the vital role the construction sector plays in generating employment opportunities for millions and stabilizing the country’s exchequer through tax contributions. He expressed concern that heightened property valuation rates will inflate the prices of construction units, adversely affecting ordinary citizens seeking affordable housing.
Pointing out the severe housing shortage in Pakistan, Chairman ABAD argued that stimulating the construction sector is imperative for economic recovery. Typically, the construction sector receives incentives and tax subsidies to promote activities across its 72 allied industries and create employment opportunities. However, Sumsum found it surprising that the District Administration is hindering rather than facilitating the construction sector.
Sumsum acknowledged the current caretaker government’s efforts toward economic stability, but he urged the withdrawal of the increased property valuation rates, emphasizing the potential ramifications for builders, developers, and aspiring homeowners. He warned that if prospective buyers are unable to afford houses due to escalated property prices, construction activities may grind to a halt, leading to substantial losses in government revenue and triggering widespread unemployment.
ABAD’s strong rejection of the increased property valuation rates underscores the critical need for collaborative decision-making processes that consider the interests of all stakeholders to foster a thriving and sustainable real estate sector in Karachi.