New Guidelines for Property Valuations in Karachi

The Federal Board of Revenue (FBR) has just rolled out a MASSIVE update on property valuations in Karachi, shaking up how commercial properties, residential areas, industrial plots, and high-rises are valued! ?

Released under S.R.O. 144(I)/2025 on Tuesday, this revision updates the earlier S.R.O. 1724(I)/2024, all in response to critical feedback from tax experts and the real estate sector. The FBR has made it clear—they’re listening, and they’re making major changes to improve transparency and fairness.

While the valuation tables themselves are unchanged, the revised methodology for property valuation is now crystal clear. It’s time for the real estate world to adjust! ?

For built-up properties, the valuation now accounts for the ENTIRE covered area, including the ground floor and any extra floors. Amenity plots? They’re now valued at 50% of the residential plot value in the same area, offering a whole new perspective. ?

For commercial and industrial properties, the calculation will be based on a per square foot rate, but it gets even more complex—industrial property values now include the whole plot and any covered structures within it. Residential buildings with multiple stories will see their additional floors valued at a mere 25% of the ground floor’s price. That’s a GAME-CHANGER for multi-story residential investments! ?

Properties that aren’t listed in the table? They’ll be judged based on the highest-valued adjacent category! For mixed-use land, the valuation is the average of residential, commercial, and industrial rates. This change opens up new opportunities, but also adds a level of complexity to consider. ??

And in a key clarification, “flat” is officially defined as a separate residential unit, complete with its own property unit number or sub-property unit number.

This is a seismic shift in how Karachi's real estate is priced and valued! ? The new rules are here, and it’s time for investors, developers, and property owners to understand the changes and make strategic moves accordingly!