Government Policies FBR Property Valuation Rates 2025

In 2025, the Federal Board of Revenue (FBR) revised its property valuation rates for major cities across Pakistan. These rates are used to calculate property taxes, capital gains tax, and stamp duties during property transactions.

If you're buying, selling, or investing in property, knowing how these values work is key to managing costs and making informed decisions.

What Are FBR Valuation Rates?

The FBR valuation rate is the official per-square-yard or per-marla value assigned to a specific property type in a defined area.

These rates are used for:

• Stamp duty and registration fee calculation
• Capital gains tax
• Withholding tax
• Income tax on rental income

They often differ from the market rate, which is the actual buying or selling price negotiated between a buyer and a seller.

What Changed in 2025?

The 2025 updates reflect:

• Adjusted values in urban and high-growth zones
• New classifications for residential, commercial and industrial properties
• Higher valuation rates for areas with increased development and demand
• Revisions for private housing schemes and gated communities

The goal is to bridge the gap between market prices and declared values, ensuring better tax compliance and revenue collection.

Impact on Property Buyers:

If you’re purchasing property in 2025, these changes may affect:

• Stamp duty costs
• Capital value tax (CVT)
• Withholding tax at the time of registration

For example:

• A plot that previously had an FBR valuation of PKR 4,000 per sq ft might now be rated at PKR 6,500.
• Stamp duty, CVT, and advance tax will now be calculated on the new rate, even if your negotiated price is higher or lower.

This means your upfront transaction costs may increase compared to last year.

Impact on Sellers:

If you’re selling a property, the updated rates affect how capital gains tax (CGT) is applied. The gain is calculated as the difference between:

• The FBR-declared purchase value when you bought the property
• The FBR-declared sale value in 2025

In many cases, the increased valuation reduces the reported gains, leading to a lower CGT liability.

Sellers in long-term holding positions (3 years or more) may still qualify for partial or full CGT exemption. (May differ when actually calculated)

How Investors Should Respond:

Investors need to account for valuation-based taxation when planning:

• Flipping timelines
• Profit margins
• Holding durations

Key considerations:

• Projects with on-ground ready-to-transfer plots, like West Marina, allow you to make clearer tax projections.
• Plots in LDA-approved or TMA-approved housing societies now carry FBR values aligned with market trends.

·         Al-Jalil Developers’ projects are registered and transparent, allowing investors to plan for FBR-regulated documentation, reducing legal risk.

Where to Find the Updated Rates:

The FBR website provides a downloadable list of 2025 valuation rates. This includes:

• All major cities
• Area-wise residential and commercial rates
• Special category projects and cooperative housing societies

You can also check with your real estate consultant or housing scheme’s legal office for updated rates applicable to your property.

Insights:

If you’re planning to buy or sell property this year, be sure to:

• Check the latest valuation table for your area
• Calculate all taxes based on the FBR rate, not just your deal value
• Discuss these numbers with your tax consultant
• Request official documentation during all transactions

Understanding FBR valuation rates is key to navigating the legal and financial side of Pakistan’s property market.