FBR increases valuation by 20pc for Karachi immovable properties

FBR increases valuation by 20pc for Karachi immovable properties

The Federal Board of Revenue (FBR) has revised the valuation of immovable properties in Karachi, announcing an increase of around 20 percent.

The decision, outlined in SRO 120(I)/2019 issued on Friday, marks a significant adjustment from the previous valuation rates set under SRO 662(I)/2016 dated August 02, 2016.

The revised valuations, applicable to 196 different areas in Karachi, encompass residential, commercial, and industrial properties. The FBR aims to align these valuations with current market trends, ensuring a fair and accurate representation of property values.

Key points from the valuations issued under SRO 120(I)/2019 include:

1. Values in Rupees: The valuations are expressed in rupees per square yard of the covered area of the ground floor plus the covered area of any additional floors.

2. Commercial Property: For commercial property, the built-up value is calculated per square yard of the covered area of the ground floor plus the covered area of any additional floor.

3. Industrial Property: The built-up value for industrial property is calculated per square yard of the plot area per square foot.

4. Residential Buildings with Multiple Floors: The value of a residential building with more than one storey increases by 25% for each additional storey. Each additional storey’s value is calculated at 25% of the ground floor’s value.

5. Miscellaneous Properties: Properties falling outside specified categories are deemed to fall into the adjacent lowest category as per the provided guidelines.

6. Mixed-Use Land: In cases where land is designated for multiple purposes such as residential, commercial, and industrial, the valuation is determined as the mean/average prescribed rate.

7. Flats and Multi-Storey Buildings: The valuation takes into account the separate property unit numbers for flats and applies additional charges for each storey in residential multi-storey buildings that consist of bedrooms and bathrooms.

8. Basement Rates: Basements in commercial properties within specific categories are valued at Rs. 13,500 per square yard.

The FBR’s decision to revise property valuations reflects the dynamic nature of the real estate market and aims to keep pace with changing property values in Karachi. The move is part of broader efforts to ensure transparency, accuracy, and fairness in property valuations.

The 196 different areas covered in the valuation list provide a comprehensive overview of the real estate landscape in Karachi, taking into account various types of properties and their distinct characteristics. Property owners, buyers, and investors are advised to review the revised valuations to stay informed about the changes in rates and comply with the updated regulations.

While adjustments in property valuations can impact stakeholders, the FBR’s initiative is geared towards maintaining a balance between market realities and tax considerations. As the property market continues to evolve, the FBR’s commitment to periodic reviews reflects a proactive approach to address economic dynamics and contribute to the overall stability of the real estate sector.