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FBR Increases Property Valuation Rates By Up To 600%

The Federal Board of Revenue (FBR) has raised the rates of valuation of immovable properties in 40 major cities across Pakistan by 100 to 600 percent, depending upon the location and type of the properties.

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FBR had revised the valuation rates back in 2019 as well, and the increase was within the range of 30 to 85 percent. The recent increase in valuation rates, with effect from December 1, 2021, has been declared unprecedented by real estate agents.

According to real estate agents, the sale and purchase of residential and commercial properties and plots are expected to massively slow down as a result of the revised valuations.

As per the FBR notification, the revised valuation rates for residential and commercial properties in Rawalpindi are as follows:

Sr. Area Value of Residential property
per marla (in Rs.)
Value of Commercial property
per marla (in Rs.)
  Off Road On road Off Road On Road
1. Satellite Town 2,250,000 3,150,000 5,100,000 6,800,000
2. Chandni Chowk 2,250,000 3,150,000 5,950,000 7,650,000
3. Westridge 2,250,000 3,150,000 4,675,000 12,070,000
4. Murree Road 4,050,000 4,950,000 8,500,000 10,200,000
5. DHA-I 4,500,000 5,400,000 8,500,000 12,750,000
6. DHA-II 1,800,000 3,600,000 8,500,000 12,750,000
7. Bahria Town Phase-I 1,080,000 1,620,000 8,500,000 13,175,000
8. Bahria Town Phase-II 1,080,000 1,620,000 8,500,000 13,175,000
9. Askari-I 1,980,000 2,700,000 3,400,000 5,525,000
10. Adyala Road 630,000 900,000 2,975,000 4,250,000

 

The revised valuation of immovable properties in Islamabad is as follows:

Sr. Sector/Location Size in square yard Value per square yard (in Rs.)
1. B-17 Any size 55,000
2. Chak Shahzad Any size 36,363
3. D-12 Any size 100,000
4. E-7 Any size 250,000
5. F-6 Any size 200,000
6. F-7 Any size 350,000
7. F-8 Any size 200,000
8. F-10 Any size 160,000
9. G-9 Any size 152,000
10. G-10 Any size 152,000

 

The revised valuation of immovable properties (flats and apartments) in Islamabad is as follows:

Sr. Sector/Location Nature Value per square foot (in Rs)
1. B-17 Flat 105,000
2. D-12 Flat 160,000
3. E-7 Flat 251,500
4. F-6 Flat 201,500
5. F-7 Flat 351,500
6. F-8 Flat 260,000
7. F-10 Flat 220,000
8. G-9 Flat 182,000
9. G-10 Flat 182,000
10. G-14 Flat 225,000

 

Similarly, the revised valuation of immovable properties (commercial) in Islamabad is as follows:

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Sr. Sector Nature Value per square foot (in Rs)
1. Blue Area Jinnah Avenue Shop 680,420
2. Blue Area Jinnah Avenue Flat/Offices (Mezzanine) 174,560
3. Blue Area Jinnah Avenue Flat (1st Floor) 168,856
4. Melody Market Ground shop 302,842
5. Melody Market Back side shop 286,580
6. Melody Market Basement 124,856
7. Abpara Market Ground shop 356,452
8. Abpara Market Back side shop 283,478
9. G-8 Markaz Ground shop 272,145
10. F-10 Markaz Ground shop 400,309

 

FBR has also increased the rate of each of its categories for properties in Karachi and, in a few cases, changed categories. According to real estate agents, the rates of valuation have gone up by as much as 300 percent.

Change Will Help Document Economy

Former chairperson Association of Builders and Developers (ABAD) Hassan Bakhshi, who was also part of a committee that proposed new valuations to the government, said the new change would help document the economy.

Bakhshi said that anomalies in rates of valuation had been removed after the latest revision. He said that the revised rates of valuation would help federal and provincial governments to increase their tax revenues.

He pointed out that amenity plots had been added for the first time in the valuation for tax.

The former ABAD chairperson said that despite the upward revision, the property prices might still not show an accurate transaction that actually took place on sale and purchase.

“It will be a gradual process. It will take four to five years to get accurate declared valuation and the actual transaction,” he added.

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Real Estate Professionals Forum Chairperson Abdul Sattar Sheikh said the change in valuation would backfire as the sector has already been struggling and foreign investors would be reluctant to invest in the country because of haphazard policymaking. He alleged that the government was doing this at the behest of foreign powers.

The FBR will also be valuing each additional storey of a residential building other than the ground floor at 25 percent of the value of the ground floor. Moreover, the valuation of a building would be accounted for depreciation five years after it was built. For the first five years, there will be no depreciation. From five to 10 years, there would be 5 percent depreciation, from 10 to 15 years there would be 7.5 percent depreciation, from 15 to 20 years there would be 10 percent depreciation and after 20 years, the property will be evaluated from the valuation of land only.

Meanwhile, in the case of flats and apartments, there will be no reduction in the value for the first five years, after five to 10 years there would be 10 percent depreciation, after 10 to 20 years there would be 20 percent depreciation, after 20 to 30 years there would be 30 percent depreciation and after 30 years there would be 50 percent depreciation.

The per marla rate of residential and commercial properties in 1,235 localities of Lahore has also been increased by FBR. The real estate agents have expressed fear that the revision in valuation will slow down business in the provincial capital.

In Lahore, FBR notified an increase in the market value of immovable properties (residential and commercial) of 1,235 areas, including private and cooperative societies in various localities.

The revised valuations are as follow:

Sr. Area Value of Residential property
per marla (in Rs.)
Value of Commercial property
per marla (in Rs.)
1. Abdalian Coop Society 1,850,000 4,000,000
2. Agriches Coop Society 1,325,000 2,450,000
3. Ali Razabad 870,000 1,538,000
4. All Societies & Town In Rakh Khamba 900,000 2,150,000
5. Awan Town 972,500 2,150,000
6. Awaisia Coop Society 900,000 1,950,000
7. Azam Garden 1,250,000 2,350,000
8. Bahria Town 1,750,000 2,750,000
9. Bakar Mandi 1,500,000 2,650,000
10. BOR Society 1,500,000 2,650,000
11. Canal View 1,315,000 3,250,000
12. Doctor Society 1,350,000 2,750,000
13. EME Society 1,875,000 6,000,000
14. Engineering University Coop Society Ltd 900,000 2,150,000
15. Hanjarwal All Societies & Towns 900,000 1,650,000
16. Hassan Town 1,300,000 1,700,000
17. Jubilee Town 1,250,000 1,600,000
18. Johar Town 1,600,000 3,150,000
19. Judicial Colony 1,400,000 3,250,000
20. LDA Avenue-I 1,250,000 1,600,000
21. Mansoora 1,150,000 2,550,000
22. Moulana Shaukat Ali Road 1,600,000 4,250,000
23. PCSIR Society Phase-I 1,600,000 3,750,000
24. PCSIR Society Phase-II & III 1,600,000 3,750,000
25. PIA Society 1,600,000 3,150,000
26. Sabzazar Scheme 1,400,000 3,150,000
27. Township Scheme 1,300,000 2,650,000
28. Wapda Town 1,300,000 3,150,000
29. Defense Phase I 3,250,000 7,000,000
30. Defense Phase III YZ Block 2,800,000 16,250,000

 

 

 

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  • The valuation table of properties in pakistan is unrealistic i.e.the valuation of plots in dha karachi of 500 yards is about 5 crore whereas these plots are sold at Rs 10 crore approx

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