FBR cuts Karachi property values by up to 50% in revised notification

The revision outlines gradual reduction in the value of constructed portions of residential grey structures in Karachi

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The Federal Board of Revenue (FBR) has revised the property value notification for Karachi, indicating a gradual reduction of up to 50% in the value of constructed portions of residential grey structures across the city.

According to media reports, amendments have been made to the property valuation notification for Karachi, originally issued on October 29, 2024.

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%.

The notification also addresses commercial properties, specifying that for 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 Defence area, the value will be increased by 15% as per FBR guidelines.