ISLAMABAD: The Competition Commission of Pakistan (CCP) has launched an inquiry into alleged deceptive marketing practices in the real estate sector of Islamabad.
Responding to a large number of complaints, the Market Intelligence Unit (MIU) and the Office of Fair Trade (OFT) of the CCP gathered extensive data and ground intelligence, revealing widespread misrepresentation by various housing societies and developers, it was said.
The inquiry will specifically target projects falsely claiming to be located within the Islamabad Capital Territory (ICT) or registered with the Capital Development Authority (CDA), despite being situated outside its jurisdiction.
At the same time, the commission has called upon all stakeholders, including consumers, investors, and overseas Pakistanis, to assist the CCP by submitting any available evidence, documents, or promotional materials that could support the inquiry.
Complaints and supporting materials may be submitted through the CCP’s online complaint portal on its website to protect public interest from further violations.
The initial analysis conducted by the CCP indicates that several housing societies and real estate projects have engaged in deceptive practices, including misrepresenting project locations by using the name “Islamabad” for developments actually situated in surrounding regions such as Rawalpindi, Attock, Taxila and Murree.
Many housing projects have falsely claimed regulatory approvals, NOCs, or affiliations with the CDA.
They have also used fake images, digital renderings, or exaggerated portrayals of developments that do not reflect the reality on the ground.
The MIU’s initial report noted that some housing societies provided false assurances of utilities such as electricity, gas, and water, or amenities like schools, hospitals, and community centres to buyers, although these facilities were not part of the approved plans.
Another key deceptive strategy involved using unauthorised endorsements, celebrity testimonials and misleading instalment plans with hidden charges, as well as promising unrealistically high returns on investment in unapproved or non-existent projects.
The CCP emphasised that such practices mislead buyers and investors, particularly overseas Pakistanis, distort competition and undermine consumer trust.
Deceptive marketing constitutes a violation of Section 10 of the Competition Act, 2010, and undertakings found guilty may face penalties of up to Rs75 million or 10 per cent of their annual turnover.
While such businesses continue to thrive by fleecing unaware buyers, the CDA has listed the names of 99 illegal housing schemes on its website, warning the public that plots are being marketed and sold in illegal housing and agro-farming schemes whose sponsors have not obtained any approval or NOC from the CDA.
Published in Dawn, October 8th, 2025
