The Federal Board of Revenue (FBR) 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 encompasses commercial properties, built-up industrial properties, built-up properties, amenity plots, high-rise buildings, and residential buildings. According to a Statutory Regulatory Order issued by the FBR, the value of commercial properties 10-15 years old would be reduced by 5%, while those 15-25 years old would see a reduction of 8%.
Commercial properties older than 25 years in the Sindh capital would see their value reduced by 10%. In DHA areas, per FBR guidelines, commercial properties would see their value increase by 15%.
According to the notification, residential grey structures in Karachi would also see a reduction in their value based on age. For homes aged 5 to 10 years, the value of the constructed part will be considered 5% less than the original valuation. For homes 10-15 years old, the constructed portion will be valued 7.5% lower, and for homes aged 15-20 years, the reduction in value will be 10%.
Regarding residential flats, the notification states that flats aged 5-10 years would see their value reduced by 10%, while flats 10-15 years old will see a 20% reduction in value. For flats aged 20-30 years, the reduction will be 30%, and for flats older than 30 years, the reduction will be up to 50%.