The Federal Board of Revenue (FBR) has updated its criteria for valuing various types of properties in Karachi, including commercial, industrial, residential, high-rise buildings, and amenity plots. These updates, outlined under Statutory Regulatory Order (SRO) 144(I)/2025, aim to standardize property valuations in the city and align them with current market conditions.
Valuation Based on Covered Area
The new valuation method calculates property value per square foot of the covered area. This includes the ground floor area and any additional floors. For commercial properties, the value will be determined using the same formula, factoring in both the ground floor and any additional floors.
Amenity and Mixed-Purpose Land Valuations
The value of amenity plots will be set at 50% of the value of residential plots in the same area. If a piece of land serves multiple purposes—such as residential, commercial, and industrial—the valuation will be based on the average prescribed rate for all purposes.
Industrial and Residential Property Valuations
For industrial properties, the valuation will be calculated per square foot of the entire plot, including any covered area. Residential buildings with more than one storey will incur a 25% increase in value for each additional storey beyond the ground floor. This ensures that properties with multiple storeys are valued based on their full height.
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Reduction and Adjustments in Property Valuation
Certain properties will experience reductions in value. For instance, commercial properties excluding the ground floor will have a 25% reduction in value, while basements in commercial buildings will be valued at 20% of the ground floor value. The value of residential properties, including basements and the first floor, may also be reduced based on specific criteria.
High-Rise and DHA Property Adjustments
High-rise buildings, which have storeys above ground level, will see a 5% increase in their valuation. Additionally, commercial plots in the Defence Housing Authority (DHA) facing any Khayaban will experience a 15% increase in value.
Impact on Property Owners and Investors
These updated criteria are designed to reflect the true market value of properties in Karachi and streamline the property valuation process. Property owners and investors are encouraged to stay informed and adjust their expectations accordingly to ensure accurate property assessments and tax filings.
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