Immovable properties in 40 major cities: FBR revises valuation rates downwards

ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday revised downward valuation rates of immovable properties in 40 major cities as compared to previously-notified rates on December 1, 2021.

In this connection, the FBR has issued notifications, here on Thursday to downward revise the valuation rates of immovable properties in big and small cities of the country.

The coverage of the valuation of the property was increased from 20 to 40 cities. In December 2020, the Board had revised upward the values of residential and commercial immovable properties located in 40 major cities to fix fair market value of immovable properties.

At that time, the values of almost all residential and commercial immovable properties of Pakistan were increased in an attempt to bring them at par with the fair market values.

Now the valuation rates have been revised downward through issuance of 40 notifications here on Thursday.

The FBR has notified valuation tables for Abbottabad, Attock, Bahawalpur, Bhawalnagar, Chakwal, Dera Ismail Khan, DG Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Hyderabad, Islamabad, Jhang, Jheleum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbella, MandiBhauddin, Manshera, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.

There are three different rates of properties including DC notified rates, the FBR’s valuation rate and market rates. When the FBR had notified valuation rates of properties on December 1, 2021, the real estate sector made hue and cry and demanded of the government to revise downward valuation rates. The Real Estate Consultants Association (RECA) representatives held meetings with Minister for Finance Shaukat Tarin and convinced him for revising downward the valuation rates. The FBR’s Chief Commissioners of respective cities were assigned for holding consultations and then the rates were revised downward.

Immovable property: FBR directed to link valuation with financial year

In case of Islamabad, the valuation rate for E-7 was revised downward to Rs150,000 for any size against earlier rate of Rs250,000 per square yard, F-6 rate was fixed at Rs140,000 for any size from earlier notified rate of Rs200,000 per square yard, F-7 rate was fixed at Rs140,000 for any size against earlier notified rate of Rs350,000 per square yard, E-11/3-4 was fixed at Rs70,000 for any size against Rs110,000 per square yard, B-17 (without possession) any size Rs12,000 against earlier notified rate of Rs55,000 per square yard, D-12 Rs100,000 for any size against Rs100,000 per square yard, F-8 rate was fixed at Rs130,000 for any size against Rs200,000 per square yard. The rate of Bani Gala was fixed at Rs28,000 for any size of plot against earlier notified rate of Rs36,363 per square yard.

The FBR has fixed Rs115,000 for any size in F-10, Rs110,000 for F-11, Rs18,000 for F-15 in case of possession, Faisal Town Rs15,000, G-17 Supreme Court Housing Society Rs20,000, Bharia Town from phase 1 to 6, Rs34,000 for any size, Pakistan Town Rs18,000.

In Islamabad, the value of residential and commercial superstructure shall be – (a) Rs2,000 per square foot, if the superstructure is up to five years old, and (b) Rs1,000 per square foot, if the superstructure is more than five years old.

For commercial area in Islamabad’s Blue Area on Jinnah Avenue, the value of shop was fixed at Rs48,611 per square yard, for shop located on Fazal-e-Haq Road Rs45,139 per square yard, Melody Market shop on ground floor Rs30,556 per square yard, Aabpara market Rs30,556 per square yard.

In case of Karachi, the FBR has divided all areas into different categories and explained that values in the Tables are in rupees; (ii) Value is per square yard of the covered area of ground floor plus covered area for the additional floors; (iii) Commercial property built up value is per square yard of the covered area of the ground floor plus covered area of the additional floors, if any; (iv) Built up industrial property value is per square yard of the entire plot area plus covered area of the plot per square foot; (v) Value in respect of a residential building consisting of more than one story shall be increased by 25 percent for each additional story i.e. value of each story other than ground floor shall be calculated @25% of the value of the ground floor; (vi) A property which does not appear to fall in any of the categories shown in the Appendix below shall be deemed to fall in the adjacent lowest category of the Appendix; (vii) Whether the land has been granted for more than one purpose viz. residential, commercial and industrial, the valuation in such a case shall be the mean/average prescribed rate; (viii) A flat means the covered residential tenement having separate property unit number/sub-property unit number; (ix) In residential, multi-storey building, additional storey shall be charged, if it consists of bed room and bath room; (x)The rates for basements of built in commercial property in categories I,II,III, and IV shall be Rs13,500 per square yard; and (xi) High Rises at Serial Number No 44 of Appendix means a building with storeys above ground plus five. (xii) The value of residential built up property (including basement and first floor) is allowed to be reduced according to a criteria as up to five years age of structure of building no reduction is allowed, from five to 10 years, five percent reduction will be allowed, from 10 to 15 years, 7.5 percent reduction is allowed, 15 to 20 years, 10 percent reduction is allowed, and more than 20 years the rate of open plot will be applied.

In Rawalpindi, the valuation of property in Satellite Town is fixed 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 area, Aslam Market Wah Rs1.6 million for residential area and Rs2.3 million for commercial area, Mumtaz City Rs849,600 per marla for residential area, and Rs7.9 million for commercial area.

In Gwadar city, the valuation of property has been fixed at Rs17.7 million per acre at Airport Road land, Coastal Highway Washendor Rs4.9 million per acres, and SHS Commercial Rs16.318 million per acres.

Through new notifications issued on Thursday, the values of almost all residential and commercial immovable properties of Pakistan were decreased.

Copyright Business Recorder, 2022