Islamabad, February 11, 2025 – The Federal Board of Revenue (FBR) has amended the property valuation rates for Karachi, introducing a revised structure to ensure greater transparency in real estate assessments.
The latest modifications were notified through SRO 144(I)/2025, which updates the previous valuation announced under SRO 1724(I)/2024 dated October 29, 2024.
These changes are aimed at refining the valuation methodology for Karachi property, ensuring that assessments better reflect real market conditions. The amendments incorporate a detailed breakdown of rates based on property type, structure age, and location.
Key Amendments to Karachi Property Valuation
General Guidelines
All values in the table are specified in Pakistani Rupees.
The valuation is determined per square foot of the covered area of the ground floor and additional floors.
For amenity plots, valuation is set at 50% of the residential plot rates for the respective area.
Commercial property valuation is based on the per square foot covered area of both the ground floor and additional floors.
For industrial properties, the valuation applies to the entire plot area plus the covered area per square foot.
Multi-Storey & Built-Up Property Valuation
The value of multi-storey residential buildings increases by 25% per additional storey.
If a property does not clearly fit into any existing category, it will be valued based on the highest adjacent Karachi property rate.
If a piece of land is designated for multiple purposes (residential, commercial, or industrial), its valuation will be based on an average of the prescribed rates.
Special Considerations for Karachi Property
Basement spaces in commercial buildings will be valued at 20% of the ground floor rate.
High-rise buildings, defined as structures with five or more additional floors above ground, have a unique valuation category.
Flats and apartments are categorized as separate property units under the valuation structure.
In multi-storey residential buildings, an additional storey is charged if it contains a bedroom and bathroom.
Depreciation Based on Age of Karachi Property
The revised valuation system incorporates age-based depreciation, recognizing that older properties depreciate in value over time.
Residential Built-Up Property (Including Basement & First Floor):
| Age of Structure | Reduction in Value |
| Up to 5 Years | No reduction |
| 5 to 10 Years | 5% reduction |
| 10 to 15 Years | 7.5% reduction |
| 15 to 25 Years | 10% reduction |
| More than 25 Years | Valued as an open plot |
Flats & Apartments:
| Age of Structure | Reduction in Value |
| Up to 5 Years | No reduction |
| 5 to 10 Years | 10% reduction |
| 10 to 20 Years | 20% reduction |
| 20 to 30 Years | 30% reduction |
| More than 30 Years | 50% reduction |
Commercial Built-Up Property:
| Age of Structure | Reduction in Value |
| Up to 10 Years | No reduction |
| 10 to 15 Years | 5% reduction |
| 15 to 25 Years | 8% reduction |
| More than 25 Years | 10% reduction |
Adjustments Based on Location & Special Features
Commercial plots in Karachi’s Defence Housing Authority (DHA) facing any Khayaban (major road) will have their valuation increased by 15%.
For commercial buildings, floors above the ground level will have a 25% reduced valuation.
Certain residential plots will receive a 20% reduction in valuation, specifically if they are:
Facing a drainage channel (Nala)
Facing a commercial area
Located opposite a school, mosque, or graveyard
A rear or triangular plot
Rear plots, defined as properties situated behind a front portion with only a narrow access corridor and no direct road visibility, will also qualify for reduced valuation.
Implications for Karachi Property Market
These adjustments in Karachi property valuations reflect the FBR’s intent to standardize tax assessments, eliminate ambiguities, and ensure fair market-based evaluations. The revisions will impact real estate transactions, capital gains taxation, and property-related fiscal planning for investors, developers, and homeowners in Karachi.
Real estate professionals and property owners are advised to review these changes carefully, as they directly affect the valuation of Karachi property for taxation purposes. Stakeholders have welcomed certain modifications, particularly the age-based depreciation mechanism, which better aligns property valuations with actual market trends.
However, some industry experts have raised concerns regarding the increase in commercial property rates in prime locations like DHA. Developers and investors believe that higher valuations could lead to increased tax liabilities, potentially impacting investment decisions in Karachi’s property sector.
The FBR has encouraged stakeholders to provide feedback and has indicated that further adjustments may be considered if necessary. Karachi’s real estate market will now closely watch the implementation of these revised valuation rules and their effects on property taxation and investment trends.