KARACHI: The Federal Board of Revenue has notified amended property assessment rates for Karachi to bring them closer to actual market prices.
For properties in Karachi, a new category “I-plus” has been formulated, where commercial properties – plots and buildings, have been re-evaluated at Rs160,000 and Rs80,000 per square meter. Defense Housing Authority (DHA) Phase I through VIII commercial buildings fall into this new category. Previously, most of these commercial properties belonged to category “I”, which had a value of Rs 123,750 for plots and Rs 73,125 for built properties, showing an increase of 30% and 9.4% respectively.
The value of DHA commercial plots against the various Khayabans has increased by 10%. The value of commercial construction units excluding the ground floor is reduced by 25%. In the case of DHA residential land with certain drawbacks like if it is facing Nullahs, commercial land, school, mosque or cemetery or if it is rear land (back land) or of a triangle plot, the assessment rates would decrease by 25 percent. A rear parcel is the one behind the front part only connected to a separate narrow corridor and not visible from the road.
The RBF also gave the annual depreciation value of commercial built properties. There will be no reduction in value for properties up to 10 years, followed by a 5% decrease in value for properties between 10 and 15 years old, an 8% decrease for properties between 15 and 20 years and a 10% depreciation for all properties over 20 years old.
Praising the new changes, real estate agent Mohammad Shabaan, said it was good that the valuation of properties with downsides such as Nullah etc. has been reduced. However, he said the government should have changed the valuation in the budget, which is only months away. It would have been easier to keep records and track them.
Former Builders and Developers Association president Hassan Bakhshi said the change will help document the economy. However, he said there was no major change in Karachi’s property valuation. There were major ambiguities in property valuation rates in Islamabad and Lahore which have been removed, he said.