The Federal Board of Revenue (FBR) has revealed a reduction in valuation rates for built-up properties, offering financial relief specifically to Karachi property owners. The updated rates now include annual depreciation for residential and commercial properties.
For residential properties, the revised notification details a gradual reduction in the value of built-up structures based on their age. Residential structures aged between 5 and 10 years will experience a 5% depreciation. Those between 10 and 15 years will depreciate 7.5%, and structures aged 15 to 25 will see a 10% reduction. Structures older than 25 years will be valued equivalently to an open plot.
The FBR has also adjusted the rates for flats and apartments. A structure aged between 5 and 10 years will depreciate by 10%, one between 10 and 20 years by 20%, those between 20 and 30 years by 30%, and structures over 30 years old will undergo a 50% depreciation.
Read: FBR Sets New Property Rates in Karachi
Commercial properties will also see adjustments, with structures aged 10 to 15 depreciating by 5%, those between 15 and 25 by 8%, and properties older than 25 by 10%. Notably, the valuation of commercial plots in the Defence Housing Authority (DHA) facing any Khayaban will increase by 15%.
This strategic adjustment by the FBR aims to align property values more closely with their real market worth and age, easing financial pressures on property owners and stimulating the real estate sector.
