KARACHI: The new law regarding property valuation has negative effect on real estate as sales and purchase has come to a almost standstill, said a speaker at a seminar held by Karachi Tax Bar Association (KTBA).
Iqbal H. Shaban in his excellent and detailed presentation on topic “ Valuation of Properties and Fair Market Value “traced the history of legislation about property in Sindh province. He said that as per estimates the supply (availability of new plots) will remain limited in near future. He was of the view that property values are likely to register a negative variance of about 20 to 30 per cent by first quarter of 2017 from the peak values of June 2016.In 2005 the property prices decreased by 30 to 50 per cent mainly due to poor law and order situation but after improvement in governance and as a result of army operation Zarb-e-Azb leading to almost ideal law and order value of the property particularly in Karachi division is likey to rise in 2017 and 2018, he said.