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Thursday March 28, 2024

FBR sets new prices for real estate in major cities

By Mehtab Haider
August 03, 2016

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday notified new valuation rates of properties for residential and commercial plots in major cities, including Karachi, Lahore, Islamabad, Rawalpindi and other cities with effect from July 31, 2016.

“With new valuation rates of property, the country will be able to regularise at least the Rs1,000 billion undocumented real estate sector out of the total Rs4,000 billion which will come into the tax net over the next few years,” Special Assistant to Prime Minister on Revenues Haroon Akhtar Khan confirmed to The News in an exclusive talk on Tuesday. The FBR has issued a total of 12 notifications for new values for the purpose of calculation of payment of Capital Gains Tax (CGT), withholding tax and protection under Section 111 of the Income Tax Ordinance 2001.

Under SRO 662(I)/2016, the new values have been issued for residential and commercial properties in Karachi.Karachi has been divided in categories of A-I, I, II, III, IV, V, VI, VII and VIII for the purpose of valuation of immovable properties in residential and commercial areas.

Karachi under category (A-1): residential open plots per square yard, value of immovable property has been fixed at Rs35,000; residential built-up property per square yard, Rs40,000; commercial open plot per square yard, Rs100,000; commercial built-up property per square yard, Rs67,500; industrial open plot per square yard, Rs.000; industrial built up property per square foot, Rs.000 and flats/ apartments per square foot, Rs5,000.

Under category (I) of Karachi, the residential open plot per square yard, the value of immovable property has been fixed at Rs25,000; residential built up property persquare yard, Rs.32,000; commercial open plot per square yard, Rs75,000; commercial built up property per square yard, Rs54,000; industrial open plot per square yard, Rs.12,000; industrial built up property per square foot, Rs.3,000 and flats/ apartments per square foot, Rs.4,500.

Category (II) of Karachi revealed that the residential open plot per square yard, value of immovable property is Rs12,000; residential built up property per square yard, Rs20,000; commercial open plot per square yard, Rs60,000; commercial built up property per square yard, Rs35,000; industrial open plot per square yard, Rs8,000; industrial built up property per square foot, Rs3,000 and flats/ apartments per square foot, Rs2,500.

Under the category (III) of Karachi, residential open plot per square yard, value of immovable property is Rs6,000; residential built up property per square yard, Rs11,000; commercial open plot per square yard, Rs.25,000; commercial built up property per square yard, Rs.18,000; industrial open plot per square yard, Rs.000; industrial built up property per square foot, Rs.000 and flats/ apartments per square foot, Rs1,500.

The category (IV) of Karachi disclosed that the residential open plot per square yard, value of immovable property would be assessed at Rs5,000; residential built up property per square yard, Rs6,000; commercial open plot per square yard, Rs19,000; commercial built up property per square yard, Rs10,000; industrial open plot per square yard, Rs.000; industrial built up property per square foot, Rs.000 and flats/ apartments per square foot, Rs1,000.

Under the category (V) of Karachi, residential open plot per square yard, value of immovable property is Rs.1,800; residential built up property per square yard, Rs.4,000; commercial open plot per square yard, Rs.4,000; commercial built up property per square yard, Rs.6,300; industrial open plot per square yard, Rs.000; industrial built up property per square foot, Rs.000 and flats/ apartments per square foot, Rs.600.

As per category (VI) of Karachi, residential open plot per square yard, value of immovable property is Rs.900; residential built up property per square yard, Rs.3,000; commercial open plot per square yard, Rs.2,000; commercial built up property per square yard, Rs.4,500; industrial open plot per square yard, Rs.000; industrial built up property per square foot, Rs.000 and flats/ apartments per square foot, Rs.300.

As per category (VII) of Karachi, the residential open plot per square yard, value of immovable property is Rs.20,000; residential built up property per square yard, Rs.28,000; commercial open plot per square yard, Rs.70,000; commercial built up property per square yard, Rs.40,000; industrial open plot per square yard, Rs.000; industrial built up property per square foot, Rs.000 and flats/ apartments per square foot, Rs.5,000.

Under the category (VIII) at Karachi, residential open plot per square yard, value of immovable property is Rs.6,000; residential built up property per square yard, Rs.11,000; commercial open plot per square yard, Rs.25,000; commercial built up property per square yard, Rs.18,000; industrial open plot per square yard, Rs.000; industrial built up property per square foot, Rs.000 and flats/ apartments per square foot, Rs.1,500.

For Karachi, the value per square yard of the covered area of ground floor plus covered area for the additional floor. The commercial property built up value per square yard of the covered area of the ground floor plus covered area of the additional floor, if any. The built up industrial property value per square yard of the plot area per square foot other than ground floor shall be calculated @ 25% of the value of the ground floor.

The FBR stated that a property which does not appear to fall in any of the categories shown in the said Appendix shall be deemed to fall in the adjacent lowest category of the appendix. Whether the land has been granted for more than one purpose in terms of residential, commercial and industrial, the valuation in such a case shall be the mean/ average prescribed rate. A flat means the covered residential tenement having separate property unit number/ sub property unit number.

 In residential, multi storey building, additional storey shall be charged if it consists of bed room and bath room. The rates for basement of built in commercial property in categories, I, II, III and IV shall be Rs.13,500 per square yard.

Under SRO.672, the FBR has notified values for assessment of immovable properties within the jurisdiction of Islamabad. The values of immovable properties in residential areas of Islamabad revealed sector D-12 (500 sq. yd) valuation rate per sq. yd is Rs.32,300; sector E-7 (500 sq.yd) valuation rate per sq. yd is Rs.56,625; sector E-7 (1000 sq.yd) valuation rate per sq. yd is Rs.57,150; sector E-7 (2000 sq.yd) valuation rate per sq. yd is Rs.57,150; sector E-11 (500 sq.yd) valuation rate per sq. yd is Rs.26,000; sector E-12 (500 sq.yd) valuation rate per sq. yd is Rs.17,800; sector F-6 (500 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-6 (1000 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-6 (2000 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-7 (500 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-7 (1000 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-7 (2000 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-8 (500 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-8 (1000 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-8 (2000 sq.yd) valuation rate per sq. yd is Rs.48,550; sector F-10 (500 sq.yd) valuation rate per sq. yd is Rs.42,050; sector F-10 (1000 sq.yd) valuation rate per sq. yd is Rs.42,050; sector F-10 (2000 sq.yd) valuation rate per sq. yd is Rs.42,050; sector F-11 (500 sq.yd) valuation rate per sq. yd is Rs.42,050; sector F-11 (1000 sq.yd) valuation rate per sq. yd is Rs.42,050; sector F-11 (2000 sq.yd) valuation rate per sq. yd is Rs.42,050; sector G-6 (500 sq.yd) valuation rate per sq. yd is Rs.41,350; sector G-6 (1000 sq.yd) valuation rate per sq. yd is Rs.41,350; sector G-6 (2000 sq.yd) valuation rate per sq. yd is Rs.41,350; sector G-7 (500 sq.yd) valuation rate per sq. yd is Rs.38,100; sector G-7 (1000 sq.yd) valuation rate per sq. yd is Rs.38,100; sector G-8 (500 sq.yd) valuation rate per sq. yd is Rs.38,100; sector G-9 (500 sq.yd) valuation rate per sq. yd is Rs.38,100; sector G-10 (500 sq.yd) valuation rate per sq. yd is Rs.38,100; sector G-10 (1000 sq.yd) valuation rate per sq. yd is Rs.38,100; sector G-11 (500 sq.yd) valuation rate per sq. yd is Rs.38,100; sector G-11 (1000 sq.yd) valuation rate per sq. yd is Rs38,100; sector I-9 (200 sq.yd) valuation rate per sq. yd is Rs.16,000; sector I-10 (200 sq.yd) valuation rate per sq. yd is Rs.16,000; sector I-11 (200 sq.yd) valuation rate per sq. yd is Rs.16,000; sector I-12 (200 sq.yd) valuation rate per sq. yd is Rs.15,000; sector I-14 (200 sq.yd) valuation rate per sq. yd is Rs.15,000; sector I-15 (200 sq.yd) valuation rate per sq. yd is Rs.15,000 and values of immovable properties in residential areas of Islamabad revealed sector I-16 (200 sq. yd) valuation rate per sq. yd is Rs.15,000.

For Rawalpindi, the valuation of commercial plot per marla in Satellite Town area fixed at Rs2.5 million and valuation of residential plot per marla Rs1.4 million, Chandni Chowk for commercial plot per marla Rs2.6 million and residential plot per marla Rs1 million, College Road Rawalpindi for commercial plot per marla Rs2.5 million and residential plot Rs1 million, Talagang road/defunct Municipal Committee Road for commercial plot per marla Rs1.2 million and for residential plot Rs1 million, Bank Road for commercial plot per marla Rs6 million and residential plot per marla Rs1.7 million, Chaklala Scheme-III for commercial plot per marla Rs2.5 million and residential plot Rs1.15 million, Wah Cantt for commercial plot per marla Rs1 million and for residential plot per marla Rs0.7 million, Murree Road for commercial plot Rs 3 million and residential plot Rs0.8 million, DHA-1 for commercial plot Rs2.5 million and residential plot of Rs0.55 million, DHA-II for commercial plot of Rs2.5 million and residential plot of Rs0.4 million, executive meadow phase-III for Bharia town for commercial plot per marla of Rs1.5 million and residential plot of Rs0.6 million, Safari-III for commercial plot Rs1.5 million and residential plot Rs375,000, from phase-I to phase-VI for Bharia Town the valuation of commercial plot was fixed at Rs1.5 million and residential plots in the range of Rs3,50,000 to Rs3,75,000.