FBR reduced property valuations by 57% in six major cities
Federal Board of Revenue (FBR) has introduced six new notifications regarding property revaluation. It is expected that following this, property prices will significantly reduce. This has come as a revision of 2016 policy introduced by Finance Minister Ishaq Dar.
In the last couple of months property prices increased by 25-30%, however, these new measures will significantly decrease property prices in Lahore, Karachi, Islamabad, Faisalabad, Rawalpindi and Peshawar.
Prices in Lahore’s seven different locations have been extensively revised. A dip of about 4.3-51.5% is expected. In EME Society and Allama Iqbal Town the rate per marla is predicted to stand at PKR 562,500, after a cut of 32.8%. In Gujjar Pura China Scheme and Shalimar Town, the rate per marla is expected to go down by 51.5% and will stand at PKR 363,000.
Karachi’s property value for DHA will decrease by 17.5% and will then stand at PKR 7,500 per square yard. 20% cut in prices is predicted for industrial plots, the price of which then stand at PKR 9,603 per square yard. Prices of industrial built-up parks will stand at PKR 1,905 square yard after receiving a cut of 36.5%.
In Islamabad, it is expected that property prices will fall by 14% in residential areas and stand at PKR 15,309/square yard. For Sectors I-15 and I-16, the prices are expected to decrease by 54.5% and 36.2%, respectively.
Overall, in deluxe areas of Rawalpindi such as DHA and Bahria Town, prices are expected to dip by 57.2%. DHA Phase I will see a cut of 39% and stand at PKR 335,000 per marla, DHA Phase II will witness a decrease of 37.5% and per marla cost will come at PKR 255,000. DHA Phase II extension rates can come down to PKR 95,000 per marla as the prices are to dip by 45.7%, whereas DHA Phase III will see a decrease of 40% and the prices will come to about PKR 90,000. A marla in DHA IV is now expected to stand at PKR 110,000 after a decrease of 51.55%.
Rates in Bahria Town’s Phase I are to stand at PKR 280,000 per marla after a dip of 25.33%. Phase I extension prices per marla will stand at PKR 165,000 after a decrease of 56%, whereas Phase II’s per marla cost will stand at PKR 160,000 after a 54.2% decrease. Phase II extension, on the other hand, will experience a dip of 57.2% and the prices will then stand at PKR 150,000-PKR 200,000. Executive Meadows Phase III, however, will be at PKR 270,000 per marla after the projected decrease of 55%.