FBR Property Valuation vs Market Value in Pakistan: What Lahore Buyers and Sellers Should Know

Every property deal in Lahore runs on two prices, and most people discover the second one only when the transfer clerk does the maths. The first is the market price: the figure you and the seller actually agree on. The second is the FBR-assessed value: the figure in the Federal Board of Revenue's valuation tables for that locality. When the FBR value is higher than your agreed price, federal taxes get calculated on the FBR value, not on what you paid.

Understanding which number applies where is the difference between a budgeted transfer and an unpleasant surprise at the registry. This guide covers where FBR values come from, which taxes use them, where they diverge from stamp duty rules, and how Lahore buyers and sellers should plan around them.

Last updated: 17 October 2026. Reviewed by Shakir Estate. Rates verified against FBR's Withholding Tax Rate Card for Tax Year 2027 and current published FBR guidance, accessed 17 October 2026.

Two numbers on the same property

Think of them as two parallel price systems.

Market value is what a willing buyer pays a willing seller. It moves with demand, location, block premiums, corner positions and negotiation. When dealers quote a price, this is what they mean, and listing prices are asking prices, not confirmed transactions.

FBR value is the official figure FBR has notified for that area under Section 68(4) of the Income Tax Ordinance 2001. It exists so the tax department has a defensible baseline for every property, even when the deed price looks suspicious. It is a tax floor, not a market forecast.

The practical rule, confirmed by FBR's Fair Market Value guidance for Tax Year 2027, is straightforward: for federal advance taxes, the declared consideration cannot be treated as lower than the FBR-notified fair market value. Where the two differ, the higher one applies.

So there are really three scenarios in every deal:

Writing a low price on the deed does not reduce these taxes. The floor holds regardless.

Where FBR values come from

FBR publishes city-wise valuation tables as SROs under Income Tax, Valuation of Immovable Properties, on fbr.gov.pk. Each table lists areas and localities with per-marla land rates and per-square-foot building rates, separated into residential, commercial, industrial and flats, with some areas split by main-road versus inner-street frontage.

For Lahore, the current main table is SRO 1722(I)/2024, issued 29 October 2024 and effective 1 November 2024, covering 1,368 localities and replacing the December 2022 table. Revisions do not run on a fixed clock: before that came updates in 2018, 2019, 2021 and 2022.

And revisions can move either way. In May 2026, FBR issued SRO 876(I)/2026, which cut valuation rates for DHA Lahore across residential, commercial and sector-shop categories. This is not an anomaly: Pakistan Today reported on 16 October 2026 that FBR has revised valuations downward by 30 to 35 per cent in seven cities this year alone, widening the gap between table values and the prices at which deals actually close.

To look up a specific property, download the Lahore SRO PDF, find the locality row and multiply the rate by the plot size; for built-up property, add the land value and the covered area times the structure rate. One practical warning: most of these PDFs are scanned images with no searchable text, so budget a few patient minutes with the document rather than expecting a lookup field. If your exact area is not listed, FBR's guidance says to use the value fixed for stamp duty, the deputy commissioner rate.

Which taxes use the FBR value

Two federal advance taxes apply on property transfers, and both now track the higher-of rule:

Section 236K (buyer). Under the Finance Act 2026, active taxpayers on the ATL pay a flat 1.25 per cent regardless of property value. Non-filers pay steeply tiered rates: 10.5 per cent up to Rs 50 million, 14.5 per cent from Rs 50 to 100 million, and 18.5 per cent above Rs 100 million.

Section 236C (seller). Active filers pay 2.75 per cent flat. Non-filers pay 11.5 per cent flat.

Both are advance taxes, adjustable against your final income tax liability, not final taxes. One change worth noting: the Tax Year 2027 rate card carries only ATL and non-ATL columns, and practitioners report that the Finance Act 2026 removed the separate late-filer category for property transactions, so a filer on the ATL is charged the filer rate even if the return was filed late. Confirm your ATL status on the FBR portal before the transfer date rather than discovering it at the registry.

Capital gains tax sits alongside this. For properties acquired on or after 1 July 2024, the rate is a flat 15 per cent of the net gain for active filers, with no holding-period benefit. Properties bought on or before 30 June 2024 still follow the old holding-period slabs, which drop to zero after six years for open plots. The 236C collected at transfer is credited against the seller's final CGT, which is one reason keeping the transfer paperwork clean matters.

Overseas Pakistanis get one useful concession: those holding a NICOP or POC who stayed in Pakistan for fewer than 183 days are charged the filer rate on 236K and 236C, per FBR's official overseas FAQ. (Section 7E, the deemed-income tax on property, was omitted by the Finance Act 2026, so it no longer applies.)

Stamp duty runs on a different table

Here is where many buyers mix things up. Stamp duty is a provincial charge, and it is calculated on the deputy commissioner collector rate or the declared sale value, whichever is higher, through Punjab's e-stamp system on challan 32-A. The FBR value is not the base. As practitioners note, FBR's own tables are stated to be for federal taxes only.

Two things to know before you pay:

First, the current urban stamp duty rate is genuinely disputed between recent sources. The Stamp (Amendment) Act 2026, published in the Punjab Gazette in May 2026, sets 2 per cent for urban areas and 1 per cent for rural, while an April 2026 ordinance suggested a uniform 1 per cent, and ordinances lapse after about 90 days unless enacted by the Assembly. Check the applicable rate on the Punjab e-stamp portal or with the Board of Revenue before your transfer rather than relying on any single article, including this one.

Second, the Punjab property e-registration system computes the higher of the DC rate and your declared price automatically, so an understated deed price does not reduce the duty either.

For the complete breakdown of every charge on a Lahore transfer, our property tax guide for Lahore buyers and sellers works through buyer and seller examples step by step.

Why the gap between FBR value and market value keeps changing

The FBR value and the market value are set by different mechanisms, so a gap is the normal state, not a bug:

• Tables move in revisions, markets move daily. Between revisions the market runs ahead or falls behind, and even a fresh revision is a snapshot of official judgment, not a live feed.
• Recent revisions have cut, not raised. The May 2026 DHA Lahore cuts and this year's multi-city downward revisions mean table values in several localities now sit well below current asking prices. As an illustration of the spread, take the Phase VI example above: the FBR table prices a 1-kanal plot at Rs 2.26 crore, while dealer anecdotes from September 2026 place 1-kanal asks in DHA Phase 8 Air Avenue in the Rs 4 to 5 crore band. Those are asking prices, not verified transactions, but the direction of the gap is clear.
• DC rates sit lower still. The deputy commissioner rate, which drives stamp duty, is widely understood to be a fraction of actual market value, as Pakistan Today put it this month.

None of this means the FBR value is a buying signal. It is a tax parameter. Treat it as part of your transfer budget, never as a valuation of the property.

What this means for buyers

Before you finalize a deal, pull the FBR table value for the exact locality and compare it with the agreed price. Whichever is higher is your base for 236K. If the agreed price is the higher number, budget 1.25 per cent (filer) on it. If the FBR value is higher, budget on that instead, and make sure the seller understands the deed price will not lower the tax.

Two common traps: first, assuming a "DC rate" quote from a dealer is the FBR value. They are different tables for different taxes. Second, assuming filer status is automatic. It is not. Check the ATL before the transfer date; the gap between filer and non-filer rates is measured in millions on mid-range Lahore deals.

If you are still deciding what a property is actually worth in the market, that is a separate question from what FBR thinks. Our AI Property Value Estimator researches live listings and block-level comparables to produce a market estimate; use it to negotiate, and use the FBR table to budget the transfer.

What this means for sellers

The 236C collected from you at transfer uses the higher of your agreed price and the FBR value for that locality. Because 236C is adjustable, keep every record: the registered deed, the transfer challan and the tax deposit receipt, so the advance can be credited against your final capital gains computation.

The holding-period question is separate but related. If you bought on or before 30 June 2024, holding longer genuinely reduced CGT under the old slabs; if you bought after 1 July 2024, the 15 per cent flat rate applies regardless of how long you held. Know which side of that line your purchase falls on before you promise a buyer a net figure.

Estimate your Lahore property value

Knowing your market value and knowing your tax base are two different jobs, and you need both. Shakir Estate's AI Property Value Estimator researches current listings, normalizes them per marla or per kanal, checks block-level comparables and strips out duplicate and suspicious asking prices, then reports a realistic value range with a midpoint.

For a walkthrough of how to get the most from the tool, see how to use the AI plot value estimator.

Quick checklist before you sign

• Look up the FBR value for your exact locality in the current Lahore SRO table before budgeting taxes.
• Compare it with the agreed price; the higher figure is the base for 236K and 236C.
• Confirm your ATL filer status on the FBR portal before the transfer date.
• Budget stamp duty separately on the DC rate or declared price, whichever is higher.
• Keep the deed, transfer challan and tax receipts; 236C is adjustable against final CGT.
• If the seller's holding period matters, ask which side of 1 July 2024 their purchase falls on, since it changes their CGT.

Frequently asked questions

How do I find the FBR value of my property in Lahore?

Download the Lahore valuation SRO from fbr.gov.pk (Income Tax section, Valuation of Immovable Properties), find your locality row and multiply the per-marla rate by your plot size. For built-up property, add land value and covered area times the structure rate. Expect a scanned PDF with no search function.

Do I pay 236K on the agreed price or the FBR value?

On whichever is higher. If your agreed price beats the FBR table value, the agreed price applies. If the FBR value is higher, that is the base. A low deed price does not reduce the tax.

Is stamp duty also calculated on the FBR value?

No. Stamp duty in Punjab is a provincial charge based on the deputy commissioner rate or the declared sale value, whichever is higher. The FBR tables apply to federal taxes only.

Why is the FBR value lower than what properties actually sell for?

FBR values are set by periodic revisions and move in steps, while market prices move continuously. Recent revisions have also cut several localities, including DHA Lahore in May 2026, widening the gap further.

Does the FBR value affect my capital gains tax as a seller?

Indirectly. CGT is computed on your actual gain (sale price minus cost), but the 236C advance tax collected at transfer is based on the higher of the consideration and the FBR value, and it is credited against your final CGT. Properties acquired on or after 1 July 2024 face a flat 15 per cent CGT for filers.

The bottom line

A Lahore property deal has two price tags: the market price you negotiate and the FBR value the tax system uses as its floor. Federal transfer taxes apply to the higher of the two, stamp duty follows the DC rate, and none of them move just because the deed says a smaller number. Check the table, check your filer status, and budget on the real numbers before you reach the registry.

Thinking of buying or selling in Lahore? Estimate your Lahore property value to see where the market sits, then speak with the Shakir Estate team about transfer costs and positioning before you sign.