The Federal Board of Revenue (FBR) has revised real estate property assessment rates. FBR reduced property prices in 40 cities starting March 1, 2022, lowering the irrationally high market values set in December 2021.
The FBR issued 40 downward notifications revised property assessment rates tables here Thursday.
Previously, in December 2021, to revise the real estate fair market value ratethe RBF had increased the residential and commercial property values established in 40 major cities of the country.
The values of almost all residential and commercial properties in Pakistan have been increased in an attempt to bring them closer to fair market values.
The FBR suspended valuation notifications until February 28 and issued downwardly revised property values from March 1, 2022, in negotiation with stakeholders, including developers and builders.
Previously, when the FBR notified property valuation rates on December 1, 2021, the real estate industry asked the government to revise the valuation rates downwards. Then the Association of Real Estate Advisors RECA representatives held talks with the Minister of Finance Shaukat Tarin and convinced him to revise the valuation rates downwards. The RBF chief commissioners of the respective cities were appointed to hold consultations, and then the rates were revised downward.
The assessment tables have been revised to collect more taxes on the real estate sector. The FBR reduced the market values of residential and commercial real estate properties located in Abbottabad; Attack; Bahawalnagar; Bahawalpur; Chakwal; Dera Ismail Khan; DG Khan; Faisalabad; Ghotki; Gujranwala; Gujarat; Gwadar; Hafizabad; Hyderabad; Islamabad; Jhang; Jhelum; Karachi; Kasur; Khushab; Lahore; Larkana; Lasbala; Mandibaauddin; Mansehra; Mardan; Mirpurkhaas; Mulan; Nankna; Narwal; Peshawar; Quetta; Rahim Yar Khan; Rawalpindi; Sahiwal; Sargoda; Sheikhupura; Sialkot; Sukkur and Toba Tek Singh.
Revised Property Valuation Rates in Islamabad
In Islamabad, the E-7 valuation rate was revised down to 150,000 rupees for any size from an earlier rate of 250,000 rupees per square meter, the F-6 rate was set at 140 000 rupees for any size from the earlier notified rate of 200 rupees. 000 per square meter, F-7 rate was set at Rs 140,000 for any size from previously notified rate of Rs 350,000 per square meter, E-11/3-4 was set at Rs 70,000 for any size against Rs110,000 per square meter, B-17 (without possession) any size Rs12,000 against previously notified rate of Rs55,000 per square meter, D-12 Rs100,000 for any size against Rs100,000 per square meter , F-8 rate has been set at Rs130,000 for any size against Rs200,000 per square meter. The Bani Gala rate has been set at Rs28,000 for any size of land against a previously notified rate of Rs36,363 per square meter.
In Islamabad, the value of residential and commercial superstructure will be – (a) Rs 2,000 per square foot, if the superstructure is up to five years old, and (b) Rs 1,000 per square foot, if the superstructure is above at five years old.
Revised Property Valuation Rates in Karachi
In the case of Karachi, the FBR divided all areas into different categories and explained that the values in the tables are in rupees; (ii) The value is per square meter of the covered area of the ground floor plus the covered area for the additional floors; (iii) The built value of a commercial property is per square meter of ground floor covered area plus the covered area of additional floors, if any; (iv) The value of built industrial property is per square meter of the total plot area plus the covered area of the plot per square foot; (v) The value of a residential building consisting of more than one storey will be increased by 25% for each additional storey, i.e. the value of each storey other than the ground floor will be calculated 25% of the value of the ground floor; (vi) A property which does not appear to belong to one of the categories shown in the schedule below shall be deemed to belong to the lowest adjacent category in the schedule; (vii) If the land was granted for more than one purpose, viz. residential, commercial and industrial, the valuation in such a case will be the prescribed average/average rate; (viii) Apartment means the Covered Residential Building having a separate Property Unit Number/Sub-Property Unit Number; (ix) In a multi-storey residential building, an additional floor will be charged if it includes a bedroom and a bathroom; (x) Basement rates for commercial properties constructed in Categories I, II, III and IV will be Rs 13,500 per square metre; and (xi) Tall Buildings at Schedule Serial No. 44 means a building with stories above ground plus five. (xii) The value of residential built property (including basement and first floor) may be reduced by such criterion that up to five years of building structure age, no reduction is permitted , from five to 10 years old, five percent reduction will be allowed, from 10 to 15 years old, 7.5% reduction is allowed, from 15 to 20 years old, 10% reduction is allowed, and above 20 years, the open parcel rate will be applied.
In rawalpindithe valuation of the property at Satellite Town is set at Rs2.4 million in residential area and Rs5 million in commercial area, DHA-1 Rs740,000 per marla and Rs4.4 million for commercial area, DHA Valley Rs125,000 per marla in residential area and Rs575,000 per marla in commercial area, Bank Road Murree Rs2.9 million for residential area and Rs5 million for commercial area, Lalazar Wah Rs1.3 million for residential area and Rs2.1 million for commercial zone, Aslam Market Wah Rs. 1.6 million for residential zone and Rs. 2.3 million for commercial zone, Mumtaz City Rs. 849,600 per marla for residential zone and Rs. 7.9 million for commercial zone .
In City of Gwadarproperty valuation was set at Rs 17.7 million per acre on Airport Road land, Coastal Highway Washendor Rs 4.9 million per acre and SHS Commercial Rs16.318 million per acre.
Thanks to new notifications released on Thursday, the values of almost all residential and commercial real estate in Pakistan have declined.