FBR Increase Property Rates From 10% to 100% in Pakistan

The Federal Board of Revenue (FBR) has increased the prices of immovable properties after the time period of 2 and a half years in 40 cities of the country. The immovable properties include the real estate properties. Under the change in valuation process, some cities have seen the price increase of 10% to 15% while other cities have featured the 100% increase in property prices. This revision will be effective from December 1, 2021.

FBR Increase Property Rates From 10% to 100% in Pakistan

FBR has determined the increase in the market value of the immovable properties in the exercise of the powers conferred by Sub-section (4) of Section 68 of the Income Tax Ordinance, 2001, and in supersession of its notifications.

The increase in property rates are used to determine the taxes applied on the sale and purchase of the properties. This will increase the overall prices of the properties.

Cities Eligible of Increase in Valuation of Property:

At least 13 new cities from Punjab, three from Sindh, two from Khyber Pakhtunkhwa, and one from Balochistan have been included on the list of the cities of Pakistan where FBR valuation is used for taxation purposes. The FBR has enhanced the market value of residential and commercial immovable properties located in the following mentioned cities:

  • Abbottabad,
  • Attock,
  • Bahawalnagar,
  • Bahawalpur,
  • Chakwal,
  • Dera Ismail Khan,
  • DG Khan,
  • Faisalabad,
  • Ghotki,
  • Gujranwala,
  • Gujrat,
  • Gwadar,
  • Hafizabad,
  • Hyderabad,
  • Islamabad,
  • Jhang,
  • Jhelum,
  • Karachi,
  • Kasur,
  • Khushab,
  • Lahore,
  • Larkana,
  • Lasbela,
  • Mandibahauddin,
  • Mansehra,
  • Mardan,
  • Mirpurkhaas,
  • Multan,
  • Nankna,
  • Narowal,
  • Peshawar,
  • Quetta,
  • Rahim Yar Khan,
  • Rawalpindi,
  • Sahiwal,
  • Sargodha,
  • Sheikhupura,
  • Sialkot,
  • Sukkur, and
  • Toba Tek Singh.

Basis of Increase in Prices:

This increase is done on per Marla, per square yard or by per square feet basis in some cities. In Karachi, the per square yard price of an A-1 category residential plot has been increased by PKR 31,000. The rates for buildings with two stories or more have been increased by 25%. The per square yard price of ready to move in residential properties has been increased by PKR 43,000. Similarly, the valuation of commercial open plots, commercial ready-to-move-in properties, and residential apartments has also been revised upward.

Effect on Property Prices and Demand:

The rates of property were ever increasing since the last 10 months. Affordable deals of investment in residential and commercial sector were launched to ensure that investors from different financial backgrounds could easily invest or make their dream home in a sophisticated society. But this is now very difficult as the prices have increased a lot and investors can’t afford to invest anymore as the buyers will decrease. Due to decrease in demand, prices of the properties will also decrease.

Effect on Investors and Real Estate Agents:

The increase in prices is not appreciated by the investors. The investors cannot invest in very expensive property. The investment capacity will decrease.

The increase in prices of real estate properties will also adversely affect real estate agents. The real estate agents help investors to invest in best properties in best rates and charge a percentage on every deal. When the investors will not invest in the properties, it will become difficult for real estate agent to earn too. The extra amount will be given to government as taxes and real estate agents are not liking this fact.

For more current information about the real estate market, contact Pakistan Property Services to make better decisions. We provide you better consultations for your real estate matters regarding Bahria Town projects being the authorized dealers. For further information, you can also visit our YouTube channel where we update regularly to get to know about the new trends in real estate market of Pakistan.

Projects We Deal in:

Many residential and commercial societies in Pakistan are evaluated carefully to help our clients make the better decision. Pakistan Property Services helps the clients invest in projects with good prospects that depend upon the parent company, developers, location, payment plan, amenities they can have in the desired project.

Lahore:

Lahore is the cultural and economic hub as well as the provincial capital of Punjab. The city is well known for its huge economic opportunities in different sectors. People come from different areas to grab these opportunities and have a residence here. Below the list of some of the top Projects in Lahore:

Karachi:

Bahria Town Karachi is a benchmark within the landscape of Karachi with its world-class excellent-planned society. This society is sketched with an area concept to supply outstanding lifestyle facilities to its residents and can introduce new benchmarks of community development in Karachi. Below the list of some of the top Projects in Karachi:

Islamabad:

Islamabad is nestled against the backdrop of the Margalla Hills. It is a modern, planned city with wide tree lined streets, large houses, elegant public buildings and well-organized bazaars. It is however; always under construction to improve transportation or develop new housing areas for its growing population. The walkways are shaded, safe, and separated from the traffic by rows of flame trees, jacaranda and hibiscus. Roses, jasmine and bougainvillea fill the parks, and scenic viewpoints show the city to its advantage. Below the list of some of the top Projects in Islamabad:

Rawalpindi:

Rawalpindi is an important administrative, commercial, and industrial centre. Its industries include locomotive works, gasworks, an oil refinery, sawmills, an iron foundry, a brewery, and cotton, hosiery, and textile mills; it also produces shoes, leather goods, pottery, newsprint, and tents. Below the list of some of the top Projects in Rawalpindi:

Multan:

Multan is city of Saints, it is best place to live if you belong to either middle class family, rich family or a poor family. The city is now develop city of Pakistan you can get every life facility here easily at low cast. Multan’s foods are very delicious especially mangoes of Multan are world famous. Below the list of some of the top Projects in Multan:

Bahawalpur:

Bahawalpur lies in the heart of South Punjab and is filled with stories that surround the legacies of Kings, Nawabs and their extravagant lifestyles. Below the list of some of the top Projects in Bahawalpur:

Peshawar:

Peshawar is the capital of the Khyber Pakhtunkhwa province of Pakistan. It is the biggest city of Khyber Pakhtunkhwa and is a relatively prosperous city. It is also a cultural and economic hub of Khyber Pakhtunkhwa. The city is famous for its food and tourism as it is one of the oldest cities of Pakistan with a recorded history that dates back to 539 BC. Below the list of some of the top Projects in Peshawar:

Gwadar:

Gwadar, town and seaport, southwestern Balochistan province, southwestern Pakistan. Located on the sandy Nuh headland that juts southward into the Arabian Sea, the town is an important fishing (sardines and sharks) and trade centre. Below the list of some of the top Projects in Gwadar:

Suggestions:

We can see that the Pakistan Real Estate Forecast 2021 suggests investing more in this market as it promises a huge profit in the coming future. The investors should purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough.

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How Does Solar Power Increase Your Home’s Value?

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