FBR unveils property valuation overhaul

February 11, 2025 (MLN): The Federal Board of Revenue (FBR) has rolled out a comprehensive overhaul of property valuation rates across Pakistan with major changes under the new notification S.R.O. 144(I)/2025.

These amendments include a series of new regulations and clarifications to the existing property valuation framework. Key highlights of the notification include:

Valuation Criteria: The values are specified in rupees per square foot of the covered area, including additional floors. Special rates are set for amenity plots, commercial properties, industrial properties, and multi-storey residential buildings.

Age-Based Reductions: The notification introduces percentage reductions in property value based on the age of the built-up structure. For residential buildings, the reductions range from no reduction for buildings up to 5 years old to a value equal to an open plot for buildings over 25 years old. Similar reductions are outlined for flats, apartments, and commercial properties.

Special Cases: Specific guidelines are provided for properties that do not fit into existing categories, properties granted for multiple purposes, and high-rise buildings. The notification also includes increased rates for commercial plots in certain areas and reductions for specific types of facing plots.

Additional Clarifications: The notification further details the valuation for basements, rear plots, and properties with mixed purposes. It provides precise criteria for what constitutes a flat and how additional storeys in residential buildings are valued.

The complete details of the amendments are as follows:

Values for the amenity plots shall be 50% of the residential plots of the respective area.

Commercial property built-up value is per square foot of the covered area of the ground floor plus covered area of the additional floors, if any.

Built-up industrial property value is per square foot of the entire plot area plus covered area of the plot per square foot.

Value in respect of a residential building consisting of more than one storey shall be increased by 25% for each additional storey i.e., the value of each storey other than the ground floor shall be calculated at 25% of the value of the ground floor.

A property which does not appear to fall in any of the categories shown in the property valuation table shall be deemed to fall in the adjacent highest property.

Whether the land has been granted for more than one purpose viz. residential, commercial or industrial, the valuation in such a case shall be the mean/average prescribed rate.

A flat means the covered residential tenement having a separate property unit number/sub-property unit number.

In a residential, multi-storey building, an additional storey shall be charged if it consists of a bedroom and bathroom.

The rates for basements of built-in commercial property shall be 20% of the value of the ground floor.

High rises mean a building with storeys above ground plus five.

The notification also outlines the value reduction criteria for different types of properties:

• Residential Built-up Property
• Built-up Property (Flats and Apartments)
• Commercial Built-up Property

The value of built-up property (flats and apartments) is allowed to be reduced according to the following criteria, namely:

Additional guidelines include:

The value of the commercial plots of Defence Housing Authority facing any Khayaban shall be increased by 15%.

The value of commercial built-up excluding ground floor shall be reduced by 25%. (r) The value of residential plots of the following categories shall be decreased by 20%:

• Nala facing plot
• Commercial-facing plot
• School facing, mosque facing plot, or graveyard facing plot
• Rear plot (back side plot) or triangle plot

A rear plot is the one lying behind the front portion only connected with a separate narrow corridor and not visible from the road.

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