Potential of the Real Estate Sector
The Real Estate sector strategic potential can drive long-term sustainable economic and industrial growth across multiple sectors of the economy, while meeting the critical housing needs of Pakistan‘s massive population.
Pakistan’s real estate sector can make the country a 1.5 – 2 trillion USD economy within just 5-6 years.
Challenges Plaguing the Real Estate Sector
Horizontal projects (housing societies), a majority of are unapproved, while some do not even exist. (more than 5000 out of approximately 8000+)
Vertical Projects (more than 60% of the projects being marketed in Islamabad are either unapproved or infeasible.
Total remittances this year are expected to be 28Bn (from formal channels) and 6Bn (from informal channels). 35% of all remittances are invested in Real Estate (Urban and Rural areas) i.e, 12Bn, of which 30 – 40% is going into the capital trap of unapproved, infeasible or non-existent projects and properties.
Every fourth overseas Pakistani has had some issue while doing a real estate transaction in Pakistan (70% of the overseas complaints on the overseas portal – Call Sarzameen are directly or indirectly related to Real Estate issues).
Reasons for these challenges
Lack of transparent flow of information (Data)
Lack of regulatory frameworks
Lack of planning
Short Term Solutions (0 - 6 Months)
In case of approved projects, regulating authorities should collect Computer-Aided Design (CAD) files from developer/builder and upload approved layout plan (horizontal) and building plan (vertical) on their websites. All units should be given a title number according to a standardized system introduced by regulating authority (Title Register).
Helpline for general public (Help desk) / Call centre for confirmation / Verification of project status, approved ‘Title Plan’ with ‘Title Number.’ All to be eventually provided online with a minimal fee to be paid.
All supporting documents (Maps, stationary and Marketing collaterals) to have NOC number – which can be used to access project information online.
In the case of unapproved projects, determine causality – why are they unapproved. Create segments for better decision-making, and reactivation of dead capital (approximately 1.5 million kanals of land is under development and unapproved which can provide 1.2 million plots of land and 1.8 million units.
In the case of approved projects, ensure compliance with approved plans. Determine the rate of violations and deviations from the plan. (Marketing maps versus Approved plans – Forensic Audit in short to medium term for compliance)
Medium Term Solutions (7 - 24 Months)
Completion of forensic audit of all existing and newly approved horizontal and vertical projects. Concurrently, implementation of online centralized database management system (Land Registry System for planned areas and approved projects – this should include title register with mortgage and other charges details etc and approved title plan) which should update in real time.
RERA implementation fro estate agents and developers
Identifying parcels of land for Naya Pakistan project including approved and unapproved societies – reactivating dead capital.
Long Term Solutions (36 - 60 Months)
Digitization of all the land parcels (approved and unapproved) across Pakistan
Centralized Database for all the units
Legal framework – RERA
National Urban Planning
Plan for Islamabad – UK Land Registry System
RERA Implementation Plan
Revitalize Plan for Dead Capital
5M Housing Units Plan
20 Years Vision – RE and Allied Industries (Technologies Plan)
National Level Urban Planning Plan