The Federal Board of Revenue (FBR) has updated the valuation criteria for various property types in Karachi, including commercial properties, built-up industrial properties, residential buildings, amenity plots, and high-rise structures.
The FBR has introduced S.R.O. 144(I)/2025 to amend S.R.O. 1724(l)/2024, addressing valuation concerns raised by tax experts and the real estate sector in Karachi. While the valuation tables from S.R.O. 1724(l)/2024 remain unchanged, the revised notification clarifies the calculation methods for different property categories.
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Key Amendments:
- All values in the table are stated in rupees.
- Property values are based on the covered area of the ground floor and any additional floors.
- Amenity plots will be valued at 50% of the corresponding residential plot rates.
- Built-up commercial property values are determined per square foot of the covered ground floor and any additional floors.
- Built-up industrial property values are based on the total plot area and the covered area per square foot.
- For multi-story residential buildings, each additional floor beyond the ground level will be valued at 25% of the ground floor rate.
- Properties that do not fall into listed categories will be classified under the highest adjacent property type.
- If land is designated for multiple uses (residential, commercial, industrial), the valuation will be based on the average of the prescribed rates.
- A flat is defined as a covered residential unit with a unique property or sub-property number.
- In multi-story residential buildings, an additional storey is chargeable if it contains a bedroom and a bathroom.
- Basements in built-up commercial properties will be valued at 20% of the ground floor rate.
- High-rise buildings are defined as structures with more than five stories above ground level.
Adjustments Based on Property Age:
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% |
| 10 to 15 years | 7.5% |
| 15 to 25 years | 10% |
| More than 25 years | Equal to open plot value |
Flats & Apartments
| Age of Structure | Reduction in Value |
|---|---|
| Up to 5 years | No reduction |
| 5 to 10 years | 10% |
| 10 to 20 years | 20% |
| 20 to 30 years | 30% |
| More than 30 years | 50% |
Commercial Built-Up Property
| Age of Structure | Reduction in Value |
|---|---|
| Up to 10 years | No reduction |
| 10 to 15 years | 5% |
| 15 to 25 years | 8% |
| More than 25 years | 10% |
Additional Adjustments:
- Commercial plots in Defence Housing Authority (DHA) facing any Khayaban will have a 15% increase in value.
- The value of built-up commercial property (excluding the ground floor) will be reduced by 25%.
- Residential plots in the following categories will receive a 20% reduction in value:
- Nala-facing plots
- Commercial-facing plots
- School, mosque, or graveyard-facing plots
- Rear or triangle-shaped plots
These updates provide more clarity in property valuation and ensure a structured approach to assessing real estate in Karachi.
