FBR Revises Property Valuation in Karachi

KARACHI – The Federal Board of Revenue (FBR) of Pakistan has recently revised property valuations for the city of Karachi, a move that is expected to have significant implications for both buyers and sellers in the real estate market. This update comes as part of the FBR's ongoing efforts to ensure that property valuations reflect current market conditions, thereby promoting transparency and fairness in property transactions.

According to a notification issued by the tax agency, the FBR has exercised its powers under the Income Tax Ordinance, 2001, to determine new fair market values for immovable properties in Karachi. The notification states, “In exercise of the powers conferred by sub-section (4) of section 68 of the Income T. Ordinance, 2001 and in supersession of its Notification No. S.R.O. 345(1)/2022, Federal Board of Revenue is pleased to determine the following fair market value of the immoveable properties as specified in columns (3) to (9) of the Table below.”

One of the most notable areas affected by this valuation update is the Defence Housing Authority (DHA), which remains a highly sought-after location in the port city. Property values in DHA can vary significantly, with residential open plots starting at around Rs20,000 per square foot and reaching as high as Rs50,000, depending on the specific phase and location within DHA. For built-up residential properties, the price generally ranges from Rs25,000 to Rs70,000 per square foot, particularly in newer areas that have seen recent development.

Commercial properties are also experiencing a surge in value. Open plots designated for commercial use can be valued between Rs40,000 and Rs80,000 per square foot, reflecting the high demand for business establishments in Karachi. Built-up commercial properties typically range from Rs50,000 to Rs100,000 per square foot, indicating a robust market for businesses looking to establish a presence in the city.

This revision in property valuation is not just a bureaucratic update; it has real-world implications for individuals and businesses alike. For potential buyers, understanding these new valuations is crucial for making informed decisions. Sellers, on the other hand, must adjust their expectations and pricing strategies in light of the updated market values. As the real estate landscape continues to evolve, staying informed about these changes will be essential for anyone involved in property transactions.

The FBR's new property valuations for Karachi serve as a reminder of the dynamic nature of the real estate market. Whether you are looking to buy, sell, or invest, being aware of these changes can help you navigate the complexities of property transactions more effectively. As Karachi continues to grow and develop, keeping an eye on property values will be key to making sound financial decisions in the future.