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FBR to Increase Property Prices by Up to 75% Across Major Cities
FBR plans to raise property prices by up to 75% in 42 major cities, with a notification expected Friday. Updates reflect fair market value and location.
ND
by News Desk
2024-10-11
FBR to Increase Property Prices by Up to 75% Across Major Cities

The Federal Board of Revenue (FBR) has announced its decision to raise the prices of immovable property across Pakistan by up to 75%. This increase comes as part of the FBR's initiative to align property valuations with the fair market value and improve tax collection from real estate transactions.

 

According to FBR sources, the new property prices have been finalized for 42 major cities, and a formal notification regarding the updated valuations is expected to be issued on Friday. These adjustments are being made after a comprehensive assessment of property values based on market dynamics and location.

 

Cities to See Major Property Price Hike

The revised property prices will affect key urban areas across the country, reflecting a significant increase in real estate valuations. The FBR has ensured that these new prices have been determined based on a fair market value approach to better capture the real worth of immovable properties.

 

In addition to these 42 cities, the FBR is expected to include 15 more cities in the next phase of property revaluation, ensuring that updated valuations apply across the country.

 

Background and Government Mandate

Officials confirmed that the Federal Tax Ombudsman had instructed the FBR to update the property valuations by October 10. This mandate follows the previous property valuation adjustments released by the FBR on September 13, 2022.

 

The revised property prices are expected to play a crucial role in improving the transparency and efficiency of Pakistan's real estate market. Higher valuations could increase revenue from property-related taxes, closing loopholes in tax evasion and creating a more accountable system.

 

Impact on the Real Estate Market

The increase in property prices by up to 75% will have wide-ranging implications for buyers, sellers, and investors across the country. As real estate valuations rise, transaction costs, including taxes, could also increase, potentially affecting market activity in both residential and commercial sectors.

 

However, real estate experts believe that aligning property values with the market rate will improve fairness and transparency in transactions, benefiting long-term investors and ensuring a more regulated property market.

 

While the real estate sector is likely to experience some initial uncertainty, the FBR’s efforts are seen as part of a broader push to ensure proper taxation of immovable assets and curb speculative activities in the market.

 
Tagged:

FBRUpdate

PropertyPrices

RealEstateNews

PakistanPropertyMarket

PropertyValuation
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