THIS refers to the news ‘One Constitution Avenue owner files contempt plea against Public Accounts Committee’ (April 22). Increasing population in urban areas, higher real estate prices and increasing costs associated with urban sprawl is going to force more and more people to go for apartments rather than houses. Therefore, it is time for the authorities to take steps to regulate this particular segment of the real estate market in the country.

We can learn from other countries where apartment or condominium living started to become a norm after the increase in urbanisation after World War II. Such countries have very strict rules related to the timing of marketing a project. For example, a developer cannot start marketing a project until the land is fully paid for and the building plan has been approved by the relevant land zoning authorities.

There are strict laws outlining how a builder can collect funds from banks and individual purchasers. Typically, these funds are held in an escrow account, and are only released based on project progress. The builders are fined heavily if they are unable to provide the facilities advertised in marketing brochures, such as parking, common use facilities, gyms, etc.

They are expected to manage the building for a year before handing over the management of the building to the residents. The builders are not allowed to treat the completed buildings as their personal properties and make even more money from common area charges.

They are also expected to provide mechanical and electrical equipment that comes with proper vendor warranties. In addition, builders are expected to honour warranties related to civil works for a specified period.

It saddens me to say that the project in question is one of the many that hoodwink local investors and overseas Pakistanis, many of whom are hard-working professionals, who are misled and abused by the builders. On their part, the authorities concerned prefer to watch the whole drama from the sidelines.

Ahsan Azim
Riyadh, Saudi Arabia

Published in Dawn, May 17th, 2023