The Federal Board of Revenue (FBR) of Pakistan has updated the valuation criteria for real estate in Karachi, indicating a gradual reduction of up to 50% in the value of constructed portions of residential grey structures across the city.
The new criteria encompass commercial properties, built-up industrial properties, built-up properties, amenity plots, high-rise buildings, and residential buildings.
According to a Statutory Regulatory Order, for commercial properties aged 10 to 15 years, the value will be reduced by 5%. For commercial properties aged 15 to 25 years, the reduction will be 8%.
Additionally, for commercial properties in Karachi that are older than 25 years, the value will be reduced by 10%. However, for commercial properties in the DHA areas, the value will be increased by 15% as per FBR guidelines.
The revised notification outlines a gradual reduction in the value of constructed portions of residential grey structures in Karachi. For homes aged 5 to 10 years, the value of the constructed part will be considered 5% less than the original valuation.
Similarly, for homes between 10 to 15 years old, the constructed portion will be valued 7.5% lower, and for homes aged 15 to 20 years, the reduction in value will be 10%.
Regarding residential flats, the notification states that for flats aged 5 to 10 years, their value will be reduced by 10%. Flats that are 10 to 15 years old will see a 20% reduction in value. For flats aged 20 to 30 years, the reduction will be 30%, and for flats older than 30 years, the reduction will be as much as 50%.
