KARACHI: Federal Board of Revenue (FBR) has announced a revised notification regarding property values in Karachi, which reflects a gradual decrease of up to 50% in the assessed value of constructed portions of residential grey structures throughout the city.
The updated notification presents a phased approach to reducing the value of constructed segments of residential grey structures in Karachi. For homes within the age bracket of 5 to 10 years, the valuation of the constructed areas will be adjusted to 5% lower than the initial assessment.
For homes that are between 10 to 15 years old, the value of the constructed portion will be reduced by 7.5%. For homes aged 15 to 20 years, the reduction in value will increase to 10%.
For residential flats, notification states that for Flats aged between 5 to 10 years will experience a 10% decrease in value. Flats that are 10 to 15 years old will see a value drop of 20%. Flats in the age range of 20 to 30 years will have a 30% reduction in value. For flats older than 30 years, the value will be reduced by up to 50%.
For commercial properties aged 10 to 15 years, there will be a valuation adjustment of 5% to their original value.
For commercial properties aged between 15 to 25 years, a reduction of 8% will apply. For those located in Karachi and older than 25 years, a 10% reduction will be implemented. Conversely, commercial properties situated in the Defence area will see a value increase of 15%, in accordance with FBR guidelines.
According to media reports, changes have been made to the property valuation notification for Karachi, which was issued on October 29, 2024.
