‘Real estate sector needs regulator’

Updated January 29, 2019

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“The existing legal framework has failed to maintain a system of proper check and balance in this sector," CCP reports.— File photo provided by Zameen.com
“The existing legal framework has failed to maintain a system of proper check and balance in this sector," CCP reports.— File photo provided by Zameen.com

ISLAMABAD: Lack of policy and regulatory framework has led to the mushroom growth of real estate projects across the country, the Competition Commission of Pakistan (CCP) observed in its report.

“The existing legal framework has failed to maintain a vigilant and a system of proper check and balance in this sector, which has resulted in the general public as well as commercial investors losing their hard earned money at the hands of felons and other factors, causing instability and disrupting the ease of doing business,” the CCP opinion titled ‘Issues of Real Estate Sector of Pakistan’ said.

The CCP opinion has said that in order to enhance the productivity of this sector, realise its full potential and protect the rights of all stakeholders, it is imperative that immediate attention is given to this sector by the government and necessary measures are undertaken to organise, formalise and regularise it.

It has been highlighted that rampant false and misleading marketing practices have made the consumers vulnerable, while it was obstructing investments in the sector.

The opinion has said that many regulatory authorities have been established at the federal and divisional level of provinces, but there is absence of a focused national policy.

“Besides, the lack of regulatory framework has resulted in mushroom growth of various projects which are being launched at massive speed in almost every town and city of the country,” the CCP said.

The CCP opinion has been finalised after the Commission received number of concerns relating to the real estate sector and open hearings were conducted in Islamabad, Lahore and Karachi which were attended by real estate customers, builders and developers, property agents, provincial governments and development authorities of different cities.

Published in Dawn, January 29th, 2019