Audit & Assurance
Project, entity and consolidated audit engagements aligned to developer reporting cycles.
/ 03 — Industry focus
Real estate.
Strategic advisory, taxation, audit and compliance solutions for developers, contractors, builders and property investment groups — calibrated for project-driven environments.
/ 02 — Overview
Building sustainable growth.
The real estate sector carries complex regulatory, taxation, reporting and project management challenges. We assist developers, contractors and property groups with transaction structuring, feasibility, financial controls, tax planning and compliance support across every stage of development.
Our professionals understand the operational and financial demands of real estate businesses — and provide practical solutions for sustainable project execution and long-term growth.
How we support real estate businesses
We work closely with management to improve project visibility, optimise reporting structures, strengthen governance and support strategic investment decisions — combining sector understanding with technical depth to help organisations manage risk and improve financial performance.
/ 03 Sector
Project-driven advisory.
/ 03 — Capabilities
Our services for real estate.
Comprehensive solutions
Project Feasibility Studies
Market demand, absorption, pricing and financial feasibility for new developments.
Tax Structuring & Advisory
Direct, indirect, capital value and provincial property tax structuring for projects and SPVs.
Financial Modelling
Project finance models, IRR scenarios and sensitivity analysis for sponsors and lenders.
Due Diligence
Buy-side, sell-side and land acquisition diligence for transactions and joint ventures.
Regulatory Compliance
SECP, building authority and AML compliance reviews for developers and brokers.
Internal Audit
Risk-based internal audit across procurement, contractor payments and project cost controls.
ERP & Process Advisory
Selection and implementation support for project accounting and ERP platforms.
Business Valuation
Enterprise, asset and project-level valuations for transactions, restructuring and disputes.
Corporate Structuring
Holding company, SPV and JV structuring to ring-fence projects and optimise returns.
/ 04 — Regulatory framework
Real estate audit in Pakistan, in practice.
Audit and advisory for Pakistani real estate developers centres on IFRS 15 percentage-of-completion revenue, capital gains tax under section 37 of the Income Tax Ordinance 2001, advance tax under sections 236C and 236K, the section 7E deemed-income regime, and provincial stamp duty — calibrated for project-driven cash flows and DC-value versus FBR-value pricing complexity.
FederalFBR for capital gains under section 37, advance tax under 236C and 236K, the section 7E deemed-income regime, and withholding obligations; SECP for incorporated developers under the Companies Act 2017.
ProvincialStamp duty and provincial capital value tax administered by Board of Revenue in each province; building approvals by Sindh Building Control Authority, LDA, CDA, RDA and similar bodies; provincial property tax under the Urban Immovable Property Tax Acts.
Reporting standardsIFRS 15 (revenue recognition over time using cost-to-cost), IAS 23 (borrowing costs capitalised on qualifying assets), IFRS 9 (financial instruments and ECL on contract assets and receivables), and IFRS 16 (leases).
Common audit findings
Where developers trip.
- 01Premature revenue recognition before transfer-of-control criteria under IFRS 15 are met.
- 02Cost-to-complete estimates not updated for material and labour escalation.
- 03Section 7E exposure on land banks and unsold inventory held by developers.
- 04Contingent liability disclosure gaps on project disputes and refund undertakings.
/ 05 — Frequently asked
Questions we hear from developers and investors.
/ 01
How is revenue recognised for a Pakistani real estate developer?
Under IFRS 15, real estate revenue is recognised either at a point in time on transfer of control (typically possession or registration) or over time using percentage-of-completion if the developer has an enforceable right to payment for performance to date and the asset has no alternative use. Most off-plan apartment and plot sales in Pakistan are now recognised over time using cost-to-cost input methods.
/ 02
What is section 7E and how does it apply to property holders?
Section 7E of the Income Tax Ordinance 2001 imposes a deemed-income tax at 20% on 5% of the FBR-notified value of immovable capital assets owned by resident persons, payable as an advance tax. Exemptions apply for self-occupied residences (up to one), agricultural land, and properties held by listed companies and certain entities. The provision has been subject to constitutional challenge and frequent legislative amendment.
/ 03
How do sections 236C and 236K advance taxes work?
Section 236C is a withholding advance tax on the seller of immovable property at the time of registration; section 236K is the equivalent on the purchaser. Rates differ for filer and non-filer status and have been periodically revised through Finance Acts. Both are collected by the registering authority and adjustable against final tax liability in the annual return.
/ 04
What is the difference between DC value and FBR value?
DC (deputy commissioner) value is the rate notified by provincial revenue authorities for stamp duty and provincial capital value tax. FBR value is the rate notified by the Federal Board of Revenue under section 68 of the Income Tax Ordinance 2001 for federal taxes — advance tax under 236C/K, section 7E, and capital gains. The two diverge significantly in most cities and create classification risk on property transactions.
/ 05
How is capital gains tax computed on property in Pakistan?
Capital gains on immovable property are taxed under section 37 of the Income Tax Ordinance 2001 on a slab basis tied to the holding period. Open plots, constructed property and flats each have their own holding-period schedule, with gains taxed at progressively lower rates the longer the asset is held. Recent Finance Acts have revised both holding periods and rates frequently — current-year tables should be referenced before any disposal.