The real estate sector of Pakistan is one of the largest sources of wealth creation. The sector continues to experience growth by providing better investment opportunities to international and local traders. It has experienced an unexpected boom due to the growing housing development projects that have addressed the country’s high demand for infrastructure.
Despite its importance, the sector faces some challenges, including unprofessionalism, malpractices, and lack of proper information. The real estate sector of Pakistan, up till now, had no decisive and comprehensive regulatory framework that could govern it.
The Islamabad Real Estate Regulatory Authority (Act) was recently established to regulate this vital sector. The authority formed under the act will govern the real estate agents and their activities to increase transparency and accountability.
A similar framework to regulate the real estate sector was introduced in India, which successfully regulated, mainstreamed, and monitored most of the country’s real estate agents and brokers. The Real Estate Regulatory Authority (RERA) Act aims to introduce effective regulation and promotion of the real estate sector.
The bill regulates several real estate sector areas, including real estate agents. According to the act, real estate agents must register themselves under the regulatory authority to facilitate the sale or purchase of any plot, apartment, or building in a real estate project.
The current bill has been restricted to the Islamabad administration, but the government is focusing on extending the bill’s scope to all provinces of the country. The prime aim of the RERA act is to bring transparency and accountability to make real estate transactions simple, promoting economic, social, and civic development.
The act has been formed to protect consumer rights. It mainly highlights major issues related to incorrect information about projects by the promoters, maltreatment of funds, and delays in completing real estate projects.
The RERA act is a revolutionary act formed to regulate and promote the real estate sector by protecting consumers’ interests through an adjudicating mechanism for speedy dispute redressal.